|
|
|
MIRA INFORM REPORT
|
Report No. : |
505345 |
|
Report Date : |
26.04.2018 |
IDENTIFICATION DETAILS
|
Name : |
DEEPAK NITRITE LIMITED |
|
|
|
|
Registered
Office : |
9/10, Kunj Society, Alkapuri, |
|
Tel. No.: |
91-265-2351013 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
06.06.1970 |
|
|
|
|
Com. Reg. No.: |
04-001735 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 261.422 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110GJ1970PLC001735 |
|
|
|
|
IEC No.: [Import-Export Code No.] |
0388046295 |
|
|
|
|
GSTN : [Goods & Service Tax
Registration No.] |
24AAACD7468A1ZZ |
|
|
|
|
TIN No.: |
24191900142 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACD7468A |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Basic Chemicals, Fine and Speciality Chemicals and Performance Products. (Registered Activity) |
|
|
|
|
No. of Employees
: |
1317 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject was incorporated in the year 1970 and it is engaged as manufacturer of organic, inorganic, fine and specialty chemicals. Its product range includes agrochemicals, rubber, pharmaceuticals, paper, textile, detergent, petrochemicals to specialty and fine chemicals. The company manufacturers bulk chemicals and commodities, fine and specialty chemicals and fluorescent whitening agents. For the financial year 2017, the company has reported a dip in its revenue as compared to its previous year but has achieved decent growth in its profit margin at 8.59% during the year. Rating takes into account the long operating track record of the company in the chemical industry, its diversified product mix as well as exposure to diversified end-user industries and the leading market position enjoyed by the company in most of its products in the domestic as well as global markets. Rating also takes into account of its satisfactory financial base along with sound net worth position and average debt coverage indicators. As per quarterly financials of December 2017, the company has achieved a sales turnover of INR 3,711.44 million and reported fair profit margin of 5.48%. However, rating strength partially offset by vulnerability of its operating margins to volatility in raw material prices and its working capital intensive operations. Trade relations are reported as fair. Payments seems to be regular and as per commitment. In view of aforesaid, 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 |
ICRA |
|
Rating |
Fund Based Limits=A+ |
|
Rating Explanation |
Adequate degree of safety and low credit risk |
|
Date |
05.03.2018 |
|
|
|
|
Rating Agency Name |
ICRA |
|
Rating |
Non-Fund Based Limits=A1+ |
|
Rating Explanation |
Very strong degree of safety and carry lowest credit risk |
|
Date |
05.03.2018 |
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
31-03-2016.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 26.04.2018.
IBBI (Insolvency and Bankruptcy Board of
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DECLINED BY
|
Name : |
Mr. Anil Kumar |
|
Designation : |
Not Divulged |
|
Contact No.: |
91-7574822338 |
|
Date : |
20.04.2018 |
LOCATIONS
|
Registered Office : |
9/10, Kunj Society, Alkapuri, |
|
Tel. No.: |
91-265-2351013/ 2334481/ 2 |
|
Mobile No.: |
91-7574822338 [Mr. Anil Kumar] |
|
Fax No.: |
91-265-2330994 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Aaditya-I, National Highway No. 8, |
|
Tel. No.: |
91-265-2765200 |
|
Fax No.: |
91-265-2340506 |
|
|
|
|
PLANTS : |
|
|
Factory 1 : |
Nitrite and
Nitroaromatics Division 4-12, GIDC Chemical Complex, Nandesari - District,
Vadodara - 391340 |
|
Tel. No.: |
91-265-2840639/ 47 |
|
|
|
|
Factory 2 : |
APL Division Plot Nos. 1-6/26, 27, 29, 31 MIDC Dhatav, Roha, District.
Raigad – 402116, |
|
Tel. No.: |
91-2194-263550 / 263750 / 264777 / 78 / 79 |
|
|
|
|
Factory 3 : |
Taloja Chemical
Division Plot No. K/9-10, MIDC, Taloja, A.V. District
Raigad-410208, |
|
Tel. No.: |
91-22-27411125 / 26 / 27 |
|
|
|
|
Factory 4 : |
Plot Nos. 70 A and B, 90-F/70-A and B, Phase II, Industrial Development Area, Jeedimetla, Taluka Quthbullapur Madal, District Ranga Reddy, Hyderabad – 500055, Telangana, India |
|
Tel. No.: |
91-40-23097401 |
|
|
|
|
Factory 5 : |
Dahej Division: Plot No. 12/B GIDC, Dahej, District Bharuch- 392130, |
|
Tel. No.: |
91-2641-266700 |
DIRECTORS
AS ON: 31.03.2017
|
Name : |
Mr. Sandesh Kumar Jagannath Anand |
|
Designation : |
Director |
|
Address : |
A/17, Chanakyapuri, New Sama Road, Baroda- 390008,
Gujarat, India |
|
Profile : |
Shri S. K. Anand has a rich experience of around 45 years
in the field of Project Management, Operations, Corporate Planning, Quality
Management, Health, Safety and Environment Management, Energy Management and
Strategic Planning in petrochemicals, refining and other allied industries.
He has received his Bachelor of Engineering (Chemical) degree from the
University of Delhi and has done a Petrochemical Course at I.I.P., Dehradun.
He has also done an Advanced Course in Management at the Indian Institute of Management,
Ahmedabad. |
|
Date of Appointment : |
04.11.2011 |
|
DIN No.: |
00001792 |
|
|
|
|
Name : |
Mr. Nimesh Nagindas Kampani |
|
Designation : |
Director |
|
Address : |
123, Maker Tower 'B', Cuffe Parade, Mumbai- 400005,
Maharashtra, India |
|
Profile : |
Shri Nimesh Kampani is the Founder and Chairman of the JM
Financial Group, one of India’s leading financial services group. In a career
spanning four decades, he has made invaluable contributions to the development
of Indian capital market. He has advised several corporates on their
strategic and financial needs, especially capital raising and mergers &
acquisitions. He has served on various committees constituted by BSE, NSE,
SEBI and ICAI. He is a Commerce Graduate from Sydenham College and a
Chartered Accountant. |
|
Date of Appointment : |
21.10.2013 |
|
DIN No.: |
00009071 |
|
|
|
|
Name : |
Mr. Swaminathan Sivram |
|
Designation : |
Director |
|
Address : |
Apartment No. 10, Gulmohar Glory-5, Gulmohar Park ITI Road
Aundh, Pune- 411007, Maharashtra, India |
|
Profile : |
Dr. Sivaram is a scientist of distinction, having held
leadership positions in R&D, in both industry and academia. He has done his
M.Sc. from the Indian Institute of Technology, Kanpur, and Ph.D. from Purdue
University, W. Lafayette, Indiana, USA. He was a Research Associate at the
Institute of Polymer Science, University of Akron, USA before returning to
India to pursue his professional career. He is widely recognised for his
contributions to polymer science, technology development, institution
building and management of innovation in publicly funded organisations. The
President of India honoured Dr. Sivaram with the coveted civilian award,
Padma Shri, in 2006. He has to his credit over 210 publications in peer
reviewed scientific journals and is cited as an inventor in over ninety two
patent applications and forty nine US patents. |
|
Date of Appointment : |
09.05.2013 |
|
DIN No.: |
00009900 |
|
|
|
|
Name : |
Mr. Deepak Chimanlal Mehta |
|
Designation : |
Managing director |
|
Address : |
Kejriwal House, 7N, Gamadia Road, Mumbai- 400026,
Maharashtra, India |
|
Profile : |
Shri Deepak C. Mehta is a dynamic personality whose business
acumen has enabled the Company to take swift strides forward and achieve new
laurels, year after year. At the helm of affairs at Deepak Nitrite for the
last 39 years, he is currently the Chairman & Managing Director of the
Company. An active participant at industry forums, Shri Deepak C. Mehta has
been the Chairman of the National Chemicals Committee at FICCI. He is a
Science Graduate from the University of Bombay. |
|
Date of Appointment : |
14.06.1978 |
|
DIN No.: |
00028377 |
|
|
|
|
Name : |
Mr. Ajay Chimanlal Mehta |
|
Designation : |
Director |
|
Address : |
Kejriwal House, 7,N, Gamadia Road, Mumbai- 400026,
Maharashtra, India |
|
Profile : |
Shri Ajay C. Mehta has been actively associated with the Company
since 1984. With extensive experience, a comprehensive approach and
possessing strong industry foresight, he has paved the way for innovation and
excellence in the Company. An active participant at industry forums, he is
the Member of Mahratta Chamber of Commerce and World Presidents’
Organisation. Shri Ajay C. Mehta is a Science Graduate with Honours and a
Masters of Science (Chemical Engineering) from the University of Texas, USA. |
|
Date of Appointment : |
01.12.1989 |
|
DIN No.: |
00028405 |
|
|
|
|
Name : |
Mr. Sudhir Gunvantray Mankad |
|
Designation : |
Director |
|
Address : |
Plot No. 192, Sector-8-C, Gandhinagar, Gandhinagar-
382007, Gujarat, India |
|
Profile : |
Shri Sudhir Mankad, IAS (Retd.), has served in senior positions,
both with the Government of India and the Government of Gujarat. His last
assignment was Chief Secretary, Government of Gujarat. He has served as a
Director/Chairman on the Board of several cement, power, fertiliser and
finance companies. He is associated with several educational institutions and
NGOs. He holds a Masters degree in History from the University of Delhi. |
|
Date of Appointment : |
13.05.2009 |
|
DIN No.: |
00086077 |
|
|
|
|
Name : |
Mrs. Indira Jitendra Parikh |
|
Designation : |
Director |
|
Address : |
Koregaon Park, Lane No. 7, Oxford Hallmark, "B"
Building, Flat No. 1001, Pune- 411001, Maharashtra, India |
|
Profile : |
Prof. Indira Parikh was the Founder President of FLAME (Foundation
for Liberal and Management Education). She holds a Ph.D. from the Gujarat
University, Ahmedabad and MA from the University of Rochester. She was a
faculty member at IIM, Ahmedabad, for over 31 years and the Dean from 2002 to
2005. She has specialised in Organisation Development and Design, and
Institution Building. She has designed and offered management development
programmes for managerial role effectiveness, training for trainers, issues
of roles and identity, and stress and self-renewal for men and women in
organisations. She has been a Consultant to various national and
international organisations, both in the private and public sectors. |
|
Date of Appointment : |
09.08.2014 |
|
DIN No.: |
00143801 |
|
|
|
|
Name : |
Mr. Richard Helmut Rupp |
|
Designation : |
Director |
|
Address : |
Meher Ville No. 21, Koregaon Park, Lane 1, Pune- 411001,
Maharashtra, India |
|
Profile : |
Dr. Rupp has held various top level positions in leading multinational
companies such as Hoechst AG (Germany), Lonza (Switzerland) and Allessachemie
(Germany). His focus is in the field of pharmaceuticals and fine chemicals.
Dr. Rupp’s experience encompasses a mix of scientific, technical as well as
managerial roles. He is well acquainted with USA, European and Asian markets,
especially the Indian subcontinent. He holds a Ph.D. in Chemistry from the
University of Karlsruhe, Germany, and has completed a programme for Executive
Development, IMD at Lausanne, Switzerland. |
|
Date of Appointment : |
27.05.2008 |
|
DIN No.: |
02205790 |
|
|
|
|
Name : |
Mr. Maulik Deepak Mehta |
|
Designation : |
Wholetime Director |
|
Address : |
Nishra 92, South Main Road, Koregaon Park, Pune – 411001, Maharashtra, India |
|
Profile : |
Shri Maulik D. Mehta holds a Bachelors degree in Business Administration from University of Liverpool, UK. He has also done Masters in Industrial and Organizational Psychology from Columbia University, USA. Shri Maulik D. Mehta has around 9 years of experience in the areas of Business Development. During the span of his career, he has held important positions including Product Head in the Company. |
|
Date of Appointment : |
09.05.2016 |
|
DIN No.: |
05227290 |
|
|
|
|
Name : |
Mr. Umesh Mohan Asaikar |
|
Designation : |
Wholetime Director |
|
Address : |
Rama Sadan, Nariman Road, Mumbai- 400057, Maharashtra,
India |
|
Profile : |
Shri Umesh Asaikar has been associated with the Company
since September 2008. He has around 38 years of varied experience in the areas
of Sales and Marketing, Manufacturing, Commercial and Business Management
across industries including pharmaceuticals, vitamins and fine chemicals,
glass flacconage, etc. During the span of his career, he has held various
leadership positions in companies such as Parke Davis, Nicholas Piramal,
Piramal Glass, etc. He holds a Bachelor’s degree in Mechanical Engineering
from the Indian Institute of Technology, Mumbai, and Master’s degree in
Management Science from Jamnalal Bajaj Institute of Management Studies. He is
also a member of the Institute of Cost Accountants of India. |
|
Date of Appointment : |
09.05.2013 |
|
DIN No.: |
06595059 |
|
|
|
|
Name : |
Mr. Sanjay Bakulchandra Upadhyay |
|
Designation : |
Wholetime Director |
|
Address : |
B 82, Bhagaylaxmi Socy Nr Samata Subhanpura,
Vadodara-390023, Gujarat, India |
|
Profile : |
Shri Sanjay Upadhyay is an Associate Memberof the Institute of Cost Accountants of India. He is also a Fellow Member of the Institute of Company Secretaries of India. He has completed Advanced Management Program from Wharton, USA. Shri Sanjay Upadhyay has vast experience in the areas of Finance, Accounts, Commercial and Secretarial Functions. He is associated with the Company since 1994. He was designated as Chief Financial Officer of the Company prior to his appointment as Director-Finance & CFO of the Company |
|
Date of Appointment : |
28.04.2017 |
|
DIN No.: |
01776546 |
|
|
|
|
Name : |
Mr. Sudhin Bhagwandas Choksey |
|
Designation : |
Director |
|
Address : |
B - 601, Ratnakar, Lane Opp. 10C Petrol Pump Off 132 Feet
Ring Road, Satellite, Ahmedabad-380015, Gujarat, India |
|
Profile : |
Shri Sudhin Choksey has extensive experience in handling functional areas of finance, commerce and general management, both in India and abroad. He is the Managing Director of GRUH Finance Ltd. He is a Fellow Member of the Institute of Chartered Accountants of India. Shri Choksey is a Director on the Board of Gujarat Ambuja Exports Ltd., HDFC Credila Financial Services Pvt. Ltd. & Light Microfinance Pvt. Ltd. |
|
Date of Appointment : |
30.03.2005 |
|
DIN No.: |
00036085 |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Bakulchandra Upadhyay |
|
Designation : |
Chief Financial Officer (KMP) |
|
Address : |
B 82, Bhagaylaxmi Society, Near Samata Subhanpura, Vadodara – 390023, Gujarat, India |
|
Date of Appointment : |
02.05.2014 |
|
Pan No.: |
AADPU9346C |
|
|
|
|
Name : |
Mr. Arvind Rajendrakumar Bajpai |
|
Designation : |
Company Secretary |
|
Address : |
A/2/202 Labh Exotica, Near. Prathan Vatika, Gotri Village,
Vadodara- 390021, Gujarat, India |
|
Date of Appointment : |
02.05.2014 |
|
Pan No.: |
AFCPB4986R |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2018
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoter & Promoter Group |
60898467 |
44.65 |
|
Public |
75494574 |
55.35 |
|
|
|
|
|
Total |
136393041 |
100.00 |
Statement showing
shareholding pattern of the Promoter and Promoter Group
|
Category
of shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares (calculated as per SCRR, 1957)As a % of
(A+B+C2) |
|
|
A1) Indian |
|
0.00 |
|
|
Individuals/Hindu
undivided Family |
2,28,67,361 |
16.77 |
|
|
Deepak Chimanlal Mehta |
2,12,36,331 |
15.57 |
|
|
Kantaben Chimanlal Mehta |
9,70,000 |
0.71 |
|
|
Ila Deepak Mehta |
3,96,010 |
0.29 |
|
|
Maulik Deepak Mehta |
1,31,300 |
0.10 |
|
|
Chimanlal Khimchand Mehta |
78,390 |
0.06 |
|
|
Meghav Deepak Mehta |
47,290 |
0.03 |
|
|
Chimanlal Khimchand Mehta - HUF |
8,040 |
0.01 |
|
|
Any Other
(specify) |
3,80,31,106 |
27.88 |
|
|
Stiffen Credits And Capital Pvt Ltd |
83,79,940 |
6.14 |
|
|
Checkpoint Credits And Capital Pvt Ltd |
72,06,050 |
5.28 |
|
|
Stepup Credits And Capital Pvt Ltd |
69,15,580 |
5.07 |
|
|
Stigma Credits And Capital P Ltd |
61,78,100 |
4.53 |
|
|
Skyrose Finvest Pvt Ltd |
37,77,356 |
2.77 |
|
|
Pranawa Leafin Pvt Ltd |
22,46,000 |
1.65 |
|
|
Forex Leafin Pvt Ltd |
21,69,780 |
1.59 |
|
|
Sundown Finvest Pvt Ltd |
8,12,300 |
0.60 |
|
|
Hardik Leafin Pvt Ltd |
3,46,000 |
0.25 |
|
|
Sub Total A1 |
6,08,98,467 |
44.65 |
|
|
A2) Foreign |
|
0.00 |
|
|
A=A1+A2 |
6,08,98,467 |
44.65 |
|
Statement showing shareholding pattern of the Public shareholder
|
Category
& Name of the Shareholders |
No.
of fully paid up equity shares held |
Shareholding
% calculated as per SCRR, 1957 As a % of (A+B+C2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B1) Institutions |
0 |
0.00 |
|
|
Mutual Funds/ |
17060856 |
12.51 |
|
|
Reliance Capital Trustee Co. Ltd-A/C
Reliancesmall Cap Fund |
6345439 |
4.65 |
|
|
Franklin India Smaller Companies Fund |
5622951 |
4.12 |
|
|
Sbi Magnum Multicap Fund |
2222994 |
1.63 |
|
|
Aditya Birla Sun Life Trustee Private
Limited A/C Aditya Birla Sun Life Pure Value Fund |
1574965 |
1.15 |
|
|
Alternate
Investment Funds |
905651 |
0.66 |
|
|
Foreign
Portfolio Investors |
15199212 |
11.14 |
|
|
L&T Mutual Fund Trustee
Limited-L&T Emerging Businesses Fund |
4961200 |
3.64 |
|
|
Idfc Sterling Equity Fund |
3227489 |
2.37 |
|
|
Aditya Birla Sun Life Trustee Private Limited
A/C Aditya Birla Sun Life Pure Value Fund |
2513833 |
1.84 |
|
|
Fidelity Puritan Trust-Fidelity Low-Priced
Stock Fund |
1767259 |
1.30 |
|
|
Financial
Institutions/ Banks |
732549 |
0.54 |
|
|
Insurance
Companies |
132575 |
0.10 |
|
|
Any Other
(specify) |
1350 |
0.00 |
|
|
Foreign Bank |
1350 |
0.00 |
|
|
Sub Total B1 |
34032193 |
24.95 |
|
|
B2) Central
Government/ State Government(s)/ President of India |
0 |
0.00 |
|
|
Central
Government/ State Government(s)/ President of India |
225040 |
0.16 |
|
|
Sub Total B2 |
225040 |
0.16 |
|
|
B3)
Non-Institutions |
0 |
0.00 |
|
|
Individual share
capital upto INR 0.200 Million |
21831818 |
16.01 |
|
|
Individual share
capital in excess of INR 0.200 Million |
3735311 |
2.74 |
|
|
Any Other
(specify) |
15670212 |
11.49 |
|
|
Trusts |
1292 |
0.00 |
|
|
HUF |
1458508 |
1.07 |
|
|
Non-Resident Indian (NRI) |
765768 |
0.56 |
|
|
Clearing Members |
259769 |
0.19 |
|
|
Bodies Corporate |
13184875 |
9.67 |
|
|
DCS Infotech Private Limited |
4648720 |
3.41 |
|
|
ICICI Lombard General Insurance Company
Ltd |
4003030 |
2.93 |
|
|
Sub Total B3 |
41237341 |
30.23 |
|
|
B=B1+B2+B3 |
75494574 |
55.35 |
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Basic Chemicals, Fine and Speciality Chemicals and Performance Products. (Registered Activity) |
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
|
|
|
|
Exports : |
Not Divulged |
|
|
|
|
Imports : |
Not Divulged |
|
|
|
|
Terms : |
|
|
Selling : |
Not Divulged |
|
|
|
|
Purchasing : |
Not Divulged |
PRODUCTION STATUS: (NOT AVAILABLE)
GENERAL INFORMATION
|
Suppliers : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Customers : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
No. of Employees : |
1317 (Approximately) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
· State Bank of India IFB Branch, Marble Arch, Race Course Circle, Vadodara, Vadodara- 390007, Gujarat, India · Bank of Baroda Dena Bank ICICI Bank Limited Axis Bank Limited Standard Chartered Bank DBS Bank Limited The Hongkong and Shanghai Banking Corporation
Limited |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
|
|
|
|
Auditors : |
|
|
Name : |
B.K. Khare and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
B. M. Sharma and Company Cost Accountants |
|
Address : |
Pune, Maharashtra, India |
|
|
|
|
Secretarial
Auditors: |
|
|
Name : |
KANJ and Associates Company Secretaries |
|
Address : |
Pune, Maharashtra, India |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Deloitte Haskins and Sells |
|
Address : |
Pune, Maharashtra, India |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiary Companies : |
· Deepak Nitrite Corporation Inc., United States of America Deepak Phenolics Limited |
|
|
|
|
Associate Company : |
Deepak Gulf LLC, Sultanate of Oman |
|
|
|
|
Entities over which
key managerial personnel or their relatives are able to exercise significant
Influence : |
· Check Point Credits & Capital Private Limited Deepak Cybit Private Limited Deepak Fertilisers and Petrochemicals Corporation
Limited Deepak Foundation Deepak International Limited Deepak Medical Foundation Deepak Research and Development Foundation Deepak Novochem Technologies Limited Forex Leafin Private Limited Hardik Leafin Private Limited Pranawa Leafin Private Limited Skyrose Finvest Private Limited Sofotel Infra Private Limited Stepup Credits & Capital Private Limited Stiffen Credits and Capital Private Limited Stigma Credit & Capital Private Limited Sundown Finvest Private Limited |
CAPITAL STRUCTURE
AFTER: 26.06.2017
Authorised Capital : INR
500.000 Million
Issued, Subscribed & Paid-up Capital : INR 272.786 Million
AS ON: 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
INR 2/- each |
INR 300.000 Million |
|
2000000 |
Preference Shares |
INR 100/- each |
INR 200.000 Million |
|
|
Total |
|
INR 500.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
130711266 |
Equity Shares |
INR 2/- each |
INR 261.422 Million |
|
|
|
|
|
a) Shares:-
Terms/Rights:
i) Authorised shares have been classified into Equity and Preference shares.
ii) Each holder of the Equity Share is entitled to one vote per Share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting.
iii) In the event of liquidation of the Company, the holders of Equity Shares shall 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. No preferential amounts exist as on the Balance Sheet date.
iv) During the current and previous year, the Company offered Equity Shares to Qualified Institutional Buyers (“QIBs”) through Qualified Institutions Placement in accordance with Chapter VIII of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. Accordingly, 1,44,23,076 Equity Shares (Previous year, 1,17,50,000 Equity Share) of INR 2/- each were allotted to QIBs on March 07, 2017 (Previous year, January 6, 2016) at an issue price of INR 104 per Equity Share (Previous year, INR 70.90 per Equity Share), including premium of INR 102 .00 per Equity Share (Previous year, INR 68.90 per Equity Share).
The issue proceeds of INR 8,33.075 Million from the Qualified Institutions Placements of previous year has been fully utilised for the object stated in the offer documents.
Out of issue proceeds of INR 15,00.000 Million from the Qualified Institutions Placements during the current year, INR 35.677 Million were utilised towards share issue expenses and INR 4,40.000 Million has been utilised for the object stated in the offer document. Pending utilisation, INR 10,24.323 Million have been invested in Liquid Mutual Funds.
v) For the year ended March 31, 2017, Dividend per Share is proposed by the Board of Directors as INR 1.20/- (Previous year, INR 1.20/-) aggregating to INR 1,56.854 Million (Previous year, INR 1,39.546 Million).
b) Reconciliation of
the shares outstanding and the amount of Equity Share Capital at the beginning
and at the end of the year:
|
|
31.03.2017 |
|
|
|
No. |
INR in Million |
|
At the beginning of the period |
116288190 |
232.576 |
|
Issued during the year – issued to QIB |
14423076 |
28.846 |
|
Outstanding at the end of the year |
130711266 |
261.422 |
c) Details of
shareholders holding more than 5% Equity Shares of INR 2 each fully paid in the
Company:
|
Name of
Shareholders |
31.03.2017 |
|
|
|
No. |
% Holding |
|
Deepak Chimanlal Mehta |
21236331 |
16.25 |
|
Stiffen Credits and Capital Private Limited |
8379940 |
6.41 |
|
Checkpoint Credit and Capital Private Limited. |
7206050 |
5.51 |
|
Stepup Credits and Capital Private Limited |
6915580 |
5.29 |
|
Stigma Credits and Capital Private Limited |
6178100 |
4.73 |
|
Franklin India Smaller Companies Fund |
7199495 |
5.51 |
(d) During the year 2014-15, Company has allotted 52,269,095 Bonus Equity Shares of INR 2/- each, fully paid up, in the ratio of 1:1 (one Bonus Equity Shares of INR 2/- each).
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
261.422 |
232.576 |
209.076 |
|
(b) Reserves & Surplus |
7082.166 |
4526.307 |
3259.202 |
|
(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) |
7343.588 |
4758.883 |
3468.278 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
1375.671 |
1589.261 |
2386.003 |
|
(b) Deferred tax liabilities (Net) |
657.237 |
566.471 |
463.240 |
|
(c)
Other long term liabilities |
28.616 |
29.080 |
26.704 |
|
(d)
long-term provisions |
73.654 |
46.851 |
52.601 |
|
Total
Non-current Liabilities (3) |
2135.178 |
2231.663 |
2928.548 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
3075.213 |
2349.049 |
2310.150 |
|
(b)
Trade payables |
1342.466 |
1302.577 |
1093.827 |
|
(c)
Other current liabilities |
1779.160 |
1742.425 |
1291.500 |
|
(d)
Short-term provisions |
40.304 |
202.260 |
143.233 |
|
Total
Current Liabilities (4) |
6237.143 |
5596.311 |
4838.710 |
|
|
|
|
|
|
TOTAL |
15715.909 |
12586.857 |
11235.536 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
5668.494 |
5911.953 |
5428.145 |
|
(ii)
Intangible Assets |
57.112 |
59.119 |
59.102 |
|
(iii)
Capital work-in-progress |
408.480 |
103.115 |
369.212 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
10.624 |
|
(b) Non-current
Investments |
2535.990 |
654.431 |
171.722 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
747.129 |
404.934 |
413.145 |
|
(e)
Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
9417.205 |
7133.552 |
6451.950 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
1029.127 |
675.150 |
0.000 |
|
(b)
Inventories |
1252.299 |
1208.511 |
1050.409 |
|
(c)
Trade receivables |
3154.506 |
2963.378 |
3109.922 |
|
(d)
Cash and cash equivalents |
17.893 |
38.841 |
27.448 |
|
(e)
Short-term loans and advances |
620.950 |
535.469 |
519.852 |
|
(f)
Other current assets |
223.929 |
31.956 |
75.955 |
|
Total
Current Assets |
6298.704 |
5453.305 |
4783.586 |
|
|
|
|
|
|
TOTAL |
15715.909 |
12586.857 |
11235.536 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
12215.575 |
13357.252 |
13271.623 |
|
|
|
Other Income |
39.413 |
15.433 |
20.547 |
|
|
|
TOTAL |
12254.988 |
13372.685 |
13292.170 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
7060.077 |
7962.903 |
8430.794 |
|
|
|
Purchases of Stock-in-Trade |
0.000 |
0.000 |
24.371 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
4.275 |
-65.433 |
115.304 |
|
|
|
Employees benefits expense |
1222.006 |
1160.795 |
1000.960 |
|
|
|
Other expenses |
1439.216 |
1434.186 |
1143.923 |
|
|
|
Power and Fuel expenses |
1024.394 |
1181.494 |
1159.218 |
|
|
|
Exceptional Items |
(749.671) |
0.000 |
0.000 |
|
|
|
TOTAL |
10000.297 |
11673.945 |
11874.570 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2254.691 |
1698.740 |
1417.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
323.143 |
390.985 |
379.935 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
1931.548 |
1307.755 |
1037.665 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
422.841 |
394.504 |
360.241 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
1508.707 |
913.251 |
677.424 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
388.325 |
261.760 |
142.994 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
1120.382 |
651.491 |
534.430 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B Value of Exports |
4519.140 |
5073.113 |
5137.760 |
|
|
TOTAL EARNINGS |
4519.140 |
5073.113 |
5137.760 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1731.343 |
2241.381 |
2614.906 |
|
|
|
Components and Spare Parts |
1.390 |
1.602 |
0.467 |
|
|
|
Capital Goods |
6.172 |
4.897 |
6.077 |
|
|
TOTAL IMPORTS |
1738.905 |
2247.880 |
2621.450 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (INR) |
9.55 |
6.07 |
5.11 |
|
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term borrowings |
1288.283 |
1013.653 |
749.032 |
|
|
|
|
|
|
Cash generated from /(used in) Operations |
1091.376 |
2099.509 |
1191.892 |
|
|
|
|
|
|
Net Cash Flow From/ (Used In) Operating Activities |
929.746 |
1912.043 |
1051.770 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2017 |
30.09.2017 |
31.12.2017 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3616.260 |
3549.740 |
3711.450 |
|
Total Expenditure |
3110.960 |
3025.350 |
3190.710 |
|
PBIDT (Excl OI) |
505.300 |
524.390 |
520.740 |
|
Other Income |
19.720 |
13.220 |
6.320 |
|
Operating Profit |
525.020 |
537.610 |
527.060 |
|
Interest |
94.570 |
107.380 |
90.190 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
430.450 |
430.230 |
436.870 |
|
Depreciation |
123.380 |
132.640 |
129.700 |
|
Profit Before Tax |
307.070 |
297.590 |
307.170 |
|
Tax |
106.020 |
70.720 |
103.730 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
201.040 |
226.870 |
203.440 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
201.040 |
226.870 |
203.440 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry
Debtors / Income * 365 Days) |
94.26 |
80.98 |
85.53 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry Debtors) |
3.87 |
4.51 |
4.27 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
69.40 |
59.71 |
47.22 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
1.80 |
1.41 |
1.35 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.37 |
0.28 |
0.24 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.57 |
0.65 |
0.71 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
0.78 |
1.04 |
1.57 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
0.85 |
1.18 |
1.40 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
0.84 |
1.28 |
1.69 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
6.98 |
4.34 |
3.73 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) * 100) |
% |
9.17 |
4.88 |
4.03 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
7.13 |
5.18 |
4.76 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
15.26 |
13.69 |
15.41 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
1.01 |
0.97 |
0.99 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
0.81 |
0.76 |
0.77 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.47 |
0.38 |
0.31 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
21.95 |
21.29 |
26.04 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
1.01 |
0.97 |
0.99 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
STOCK
PRICES
|
Face Value |
INR 2.00/- |
|
|
|
|
Market Value |
INR 250.00/- |
FINANCIAL ANALYSIS
[all figures are
in INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
209.076 |
232.576 |
261.422 |
|
Reserves & Surplus |
3259.202 |
4526.307 |
7082.166 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
3468.278 |
4758.883 |
7343.588 |
|
|
|
|
|
|
long-term borrowings |
2386.003 |
1589.261 |
1375.671 |
|
Short term borrowings |
2310.150 |
2349.049 |
3075.213 |
|
Current Maturities of Long
term Borrowings |
749.032 |
1013.653 |
1288.283 |
|
Total
borrowings |
5445.185 |
4951.963 |
5739.167 |
|
Debt/Equity
ratio |
1.570 |
1.041 |
0.782 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
13271.623 |
13357.252 |
12215.575 |
|
|
|
0.645 |
-8.547 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
13271.623 |
13357.252 |
12215.575 |
|
Profit |
534.430 |
651.491 |
1120.382 |
|
|
4.03% |
4.88% |
9.17% |
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 |
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 |
INDEX OF CHARGES
|
SNO |
SRN |
CHARGE ID |
CHARGE HOLDER NAME |
DATE OF CREATION |
DATE OF MODIFICATION |
DATE OF SATISFACTION |
AMOUNT |
ADDRESS |
|
1 |
G61015483 |
10506977 |
State Bank of India |
25/06/2014 |
13/10/2017 |
- |
1400000000.0 |
Industrial Finance Branch,III-IV Floor,III-IV Floor, Mid Town Heights,Jetalpur RoadVadodaraGJ390007IN |
|
2 |
C50805670 |
10134988 |
State Bank of India |
15/12/2008 |
27/03/2015 |
- |
4700000000.0 |
IFB Branch, Marble Arch, Race Course Circle,Vadodara - 390007VadodaraGJ390007IN |
|
3 |
C04983367 |
10045475 |
Axis Bank Limited |
26/03/2007 |
13/05/2014 |
- |
2264400000.0 |
Axis House C-2,Wadia International Centre,Pandurang Budhkar Marg,WorliMumbaiMH400025IN |
|
4 |
G44220440 |
10096389 |
EXPORT-IMPORT BANK OF INDIA |
14/03/2008 |
30/11/2011 |
05/05/2017 |
100000000.0 |
Centre One Building, Floor 21World Trade Centre Complex, Cuffe ParadeMumbaiMH400005IN |
|
5 |
B58484247 |
10023331 |
EXPORT IMPORT BANK OF INDIA |
21/09/2006 |
- |
17/09/2012 |
115000000.0 |
CENTRE ONE BUILDING, FLOOR 21WORLD TRADE CENTRE COMPLEX, CUFFE PARADEMUMBAIMH400005IN |
|
6 |
B09096900 |
90103146 |
EXPORT-IMPORT BANK OF INDIA |
15/02/1999 |
15/09/2005 |
28/03/2011 |
140000000.0 |
CENTRE ONE`WORLD TRADE CENTRE; CUFFE PARADEMUMBAIMH400005IN |
|
7 |
B09096173 |
90103334 |
EXPORT IMPORT BANK OF INDIA |
09/01/2004 |
30/05/2005 |
28/03/2011 |
100000000.0 |
CENTRE ONE BUILDING FLOOR21WORLD TRADE CENTRE; CUFFE PARADEMUMBAIMH400005IN |
|
8 |
B09096538 |
80017625 |
EXIM BANK |
28/12/2004 |
- |
28/03/2011 |
120000000.0 |
WORLD TRADE CENTER COMPLEXMUMBAIMH400005IN |
|
9 |
B09097213 |
80062326 |
EXPORT-EMPORT BANK OF INDIA |
12/01/2006 |
- |
28/03/2011 |
200000000.0 |
CENTRE ONE BUILDING, FLOOR -21WORLD TRADE CENTRE COMPLEX, CUFFE PARADEMUMBAIMH400005IN |
|
10 |
B09095696 |
80017624 |
EXIM BANK OF INDIA |
28/12/2004 |
- |
28/03/2011 |
30000000.0 |
WORLD TRADE ENTRE COMPLEXMUMBAIMH400005IN |
UNSECURED LOANS
|
PARTICULARS |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
Other Loans and
Advances |
|
|
|
Loan from Banks |
195.000 |
0.000 |
|
|
|
|
|
SHORT TERM BORROWINGS |
|
|
|
Working Capital Borrowing from Banks |
1141.225 |
560.792 |
|
|
|
|
|
Total |
1336.225 |
560.792 |
COMPANY OVERVIEW
Deepak Nitrite Limited (‘DNL’ or ‘the Company’) is a prominent chemical manufacturing company. The Company manufactures Basic Chemicals, Fine & Speciality Chemicals and Performance Products.
PERFORMANCE REVIEW
The Financial Year (“FY”) 2016-17 was a challenging year on multiple fronts, and the Company has delivered a resilient performance indicating robustness of the business model. The emphasis on quality and sustainability of operations, widening of portfolio of products, active customer engagement, focus on profitable products and a healthy mix of end-user industries and markets served has enabled it to emerge stronger and better positioned to capture the opportunities ahead.
The performance in FY 2016-17 should be viewed in light of the several challenges faced. The wave of regional protectionism has spread across the developed world and has increased the pitch for supporting local production to preserve jobs and has thus impacted growth in export markets. These were coupled with BREXIT and instability in EU region. The lingering effects of the depressed crude oil prices and resultant impact on petrochemical intermediates also continued to exert pressure on growth. Furthermore, re-entry of Iran as a global crude supplier improved the availability of higher grades of crudes thereby impacting demand for fuel additive products. At the same time, prices of commodities were on the wane though they were thought to be reversing.
Apart from these developments, the Company encountered multiple headwinds in the form of temporary closure of one of the three units at its Hyderabad facility due to excessive flooding and the resulting issues related to pollution. The performance was further impacted by an accidental fire that broke out at one of the distillation columns of the Company’s manufacturing facility for Fine and Speciality Chemicals intermediates at Roha Industrial Estate in Maharashtra. Both these events impacted the volume off take of key products in the Fine & Speciality Chemicals as well as the Performance Products segments. Apart from these major events, demonetisation also impacted performance of some of the Company’s end user industries, which impacted the Company’s operations temporarily though it recovered swiftly.
Against this backdrop, the Company has reported a resilient performance in FY 2016-17. The Company recorded revenues at INR 12215.600 Million in FY 2016-17 compared to INR 13357.300 Million in FY 2015-16 and volumes declined by 4% due to one-time events which impacted the production as well as sales. That said, favorable product mix and aggressive marketing helped your Company to increase volumes towards the end of the year, especially in the established business segments partly offsetting this impact and enabling the Company to effect a turnaround from the impact of one-time events in October and November, 2016.
Further, your Company leveraged its strength to switch to enhance the volumes of value added products to mitigate impact from down-cycle of existing product categories.
Export markets contributed 39% to the total revenues, while contribution from domestic market came in at 61%. Export Revenue stood at INR 4708.400 Million in FY 2016-17, lower by 10.6% compared to INR 5257.500 Million last year a result of the multiple headwinds faced by your Company. Active efforts have been made by the Company to deepen its connect with customers in key export markets of Europe, USA and China. Going ahead, the Company will continue to work towards widening and deepening market presence to grow revenues from exports in absolute terms. Once the Phenol project is commissioned, the proportion of exports in overall revenue mix in the consolidated performance will reduce since Phenol and Acetone are meant for domestic consumption, being import substitution products.
Profit Before Tax excluding Exceptional Items stood at INR 759.000 Million as compared to INR 913.300 Million in FY 2015- 16. Apart from the revenue impact due to one time events, the Company incurred certain one-time expenses as well as higher depreciation due to increase in asset base. Profit After Tax excluding Exceptional Items stood at INR 533.300 Million in FY 2016-17 compared to INR 651.500 Million in FY 2015-16. Earnings Per Share (excluding Exceptional Items) for FY 2016- 17 stood at INR 4.55 per share (of face value of INR 2 each) on an enlarged capital base compared to INR 6.07 per share in FY 2015-16. The road ahead appears encouraging as the Company foresees several opportunities in the Indian chemicals space. Following the unforeseen events, the Company has now restarted all the facilities at Roha except one and is confident of restoring the growth momentum. It is anticipated that all the three SBUs viz. Basic Chemicals, Fine & Speciality Chemicals and Performance Products segment will contribute positively to the performance. The Company is confident of its prospects as the focus of strategies and efforts of the last few years has been to diversify and strengthen the business model and allow the Company to further elevate the growth trajectory by strengthening all of the growth engines.
A review of the performance during the year is given under the section “Management Discussion and Analysis Report”.
MANAGEMENT DISCUSSION
& ANALYSIS
GLOBAL SCENARIO
The Financial Year (“FY”) 2016-17 marked another challenging and eventful year for the world economy owing to sluggish global trade, subdued investment, heightened geopolitical uncertainty, regional protectionism and change of leadership in some of the leading global economies. There have been several impacting events like – election of new President in the USA, UK’s protectionism through BREXIT, potential political insulation of other EU economies, entry of Iran in global oil supply, missile and nuclear testing by North Korea, tension in Indo-Pak border – all these are expected to have serious impact on world trade and commerce. Amidst all these, global growth was 2.3% in 2016, which is projected to improve only marginally to 2.7% in 2017 largely on the back of recovery in emerging markets and select developing economies. Growth in these markets, as well as some developed economies, is expected to pick up in 2017 on the back of improved commodity prices, resumption in investments, improved consumer confidence and increasing consumption on the back of pent up demand. The lack of decisive improvement in the investment climate continues to weigh on the mediumterm prospects across many emerging markets and developing economies. However, fiscal stimulus and similar growth enhancing policies in major economies hold the potential to boost global growth above expectations.
Advances in major developed economies, including United States of America (USA) - the world’s largest economy, will have positive repercussions on the rest of the world. Acceleration in USA’s growth due to expansionary fiscal policies and the attempts to accelerate infrastructure spending could provide a major boost to the global economy. Major advanced economies reported muted growth at 1.6% in 2016 due to policy uncertainties, weak external demand and subdued productivity growth. While this is expected to recover in FY 2017-19, uncertainty around policies of the new administration in USA and United Kingdom’s (UK) decision to leave the European Union (BREXIT) will certainly influence the growth trajectory going forward. On the other hand, devaluation of Chinese Yuan, change in Chinese fiscal, business and social policies may play a major role in world commerce and economy.
Emerging markets and developing economies account for more than one-third of the global GDP and about three-quarters of the world’s population. Any slowdown in these economies can have a consequent effect on the developed nations. Weak investments in these economies pose a significant challenge. While policy priorities depend on country circumstances, policymakers are progressively employing full range of cyclical and structural policies to accelerate investment growth in these countries.
Emerging market and developing economies (EMDEs) grew at an estimated 3.4% in 2016, broadly in line with expectations. This rate is expected to accelerate to 4.2% in 2017 and to an average of 4.7% in 2018-19. These economies are expected to account for about 60% of global growth for the first time since 2013. With an expected increase in commodity prices, particularly for crude oil, the divergence in growth outlook between commodity exporters and importers is set to narrow. The long-term prospects of EMDE would depend on host of aspects, the most prominent being uncertainty about global trade prospects and advanced economy policies, weakening in potential output resulting from subdued investment, lower productivity growth, and demographic factors.
Expected steady revival in global trade in 2017 and 2018 will be driven by likely rebound in import demand from large EMDEs. The pace of the recovery will, however, be slower than expected due to downward revisions of growth prospects in major advanced economies, persistent weakness in global investment, and slower trade liberalisation amid uncertainty about trade policy in the United States and Europe. While the overall trend for growth in the global economy continues to point upwards, the pace of growth is likely to be moderate in the immediate term.
DOMESTIC SCENARIO
During the first half of FY 2016-17, India’s growth was supported by strong private and public consumption, which compensated for the moderated fixed investment, sluggish industrial activity and continued slow down in exports. While the economy is yet to emerge from the cyclical downturn in infrastructure spending and asset creation, India is estimated to continue to grow at a lively pace of around 7% in 2017 supported by low oil and commodity prices and robust agricultural output. Overall consumption was accelerated during the year due to lower energy costs, public sector remunerations and favorable monsoons, which boosted urban and rural incomes. A surge in foreign direct investment (FDI) and an increase in public infrastructure spending positively impacted the economic activity in the country. However, the momentum was momentarily impacted to some extent by the ‘Demonetisation’ initiative, which resulted in short-term disruptions, however, government actions brought back the economy into normalcy post a successful demonetisation move and implementation. In addition to this, downsizing in private investment, reflecting excess capacity, corporate deleveraging and credit constraints owing to impaired assets of commercial banks’ had a cascading effect on the economy.
On the flip side, India witnessed passing of four crucial reforms namely Bankruptcy and Insolvency Code, 100% ownership in previously restricted sectors, Goods and Services Tax (GST) Amendment Bill and a monetary policy framework that includes setting up a monetary policy committee and agreeing on a flexible inflation target, with a 2% to 6% range. GST by far was one of the most critical reforms, which aims to streamline the country’s complex indirect tax structure, reduce fragmentation in markets for goods and services, lower business costs and widen the overall tax base. Additionally, a monetary policy framework including setting up a monetary policy committee would help enhance the Reserve Bank of India’s (RBI) operational independence, and help to anchor inflation expectations.
Over FY 2017-18, India is expected to be back on a strong growth path of 7.6% which would further strengthen to 7.8% in FY 2018 -19. A slew of reform initiatives undertaken in the past will unlock domestic supply bottlenecks and raise productivity. Adequate infrastructure spending inducing government expenditure would further improve the business climate and attract investments in the near-term. The Government of India’s ambitious ‘Make in India’ initiative would further augment the manufacturing sector backed by domestic demand and further regulatory reforms. Modest inflation as well as service pay hike to support real income and consumption backed by likely bumper harvests and favourable monsoons are expected to provide a fillip to economic growth. Sustained benefit of demonetisation will lead to liquidity expansion and enhanced tax network in the system thereby helping to lower lending rates and lift economic activity.
INDUSTRY TRENDS AND
OUTLOOK
The global chemical industry has been expanding at a steady pace over the past couple of years. Emerging Asian markets have become a new manufacturing hub for the global chemical giants largely led by China where chemicals sales have increased manifold. While China continues to dominate the global chemical market, the recent slowdown in the country, as well as instances of pollution and plant shutdown, has taken a toll on chemical manufacturing. This has given a commanding market position to other chemical majors from rest of Asia. India is an obvious beneficiary of this development given its market position in the global chemical market.
The Indian chemical industry is one of the most established and rapid growing sectors for the country. It plays a vital role in the economic development thereby serving as a critical input for the industrial and agricultural development. This sector has always witnessed considerable growth in the past and is currently poised to further this momentum. The Indian chemical industry is the 3rd largest producer in Asia and 6th by output in the world. By 2020, the Indian chemical industry is projected to reach USD 226 billion. In terms of volume, the Indian chemical exports have shown a remarkable growth of 7.51% from 52.9 lakhs tonnes in FY 2014-15 to 56.9 lakhs tonnes in FY 2015-16, which is a positive sign.
India has become a global player in speciality chemicals, the market for which is expected to reach USD 70 billion by 2020. India’s speciality chemical industry is highly fragmented, and growth is largely governed by domestic demand and exports in select segments. These chemicals are witnessing increased usage in customer-related industries such as agrochemical, pharmaceutical, automotive and textiles, with higher consumer demand for better quality and superior products. Key drivers such as innovation and sustainability initiatives have become major factors that determine competitiveness and have become the foremost priority of producers. ‘Green Chemistry’ and environmental preservation initiatives are widely accepted by the global counterparts.
The road map appears promising as India’s chemical industry is poised for robust growth and investment on the back of solid domestic demand and robust export market. Key reform initiatives that would support growth in the chemical industry include the Government’s ‘Make in India’ initiative that has altered policies to boost investments in the country, including the chemical industry; National Chemical Policy which has created an enabling framework to accelerate manufacturing of chemicals in order to meet growing internal and external demands as well as reduce dependence on imports. The upcoming years will provide an opportunity for domestic industry players to gain scale and consolidate, while the international players may set up a robust manufacturing base in the country.
PERFORMANCE OF
STRATEGIC BUSINESS UNITS
BASIC CHEMICALS
In Basic Chemicals (renamed from Bulk Chemicals and Commodities), your Company manufactures Nitro Toluenes, Ortho Toluenes, Fuel Additives, Sodium Nitrate and Sodium Nitrite. These chemicals are used for applications across colourants, rubber chemicals, explosives, dyes, pigments, food colours, pharmaceuticals, petrol & diesel blending and agrochemicals among others. These chemicals are supplied in high volumes and are subject to moderate margins. The Company manufactures these chemicals as per standard specifications, with superior quality through process excellence across each product. The focus is on cost leadership to drive volume growth and profitability.
In FY 2016-17, revenues for Basic Chemicals stood at INR 6345.700 Million compared to INR 6745.600 Million for FY 2015- 16. This segment contributed 51% to total revenues during the year, with EBIT margin of 14%. The volumes declined by 4%. While business of Fuel Additives was subdued during the year, the same production lines could have been utilised for producing other contributory products during the year which gave boost to the margin in this business segment.
FINE AND SPECIALITY
CHEMICALS
The Fine and Speciality Chemicals segment comprises of niche products that require more value addition. Under Fine and Speciality Chemicals segment, your Company manufactures Speciality Chemicals, Xylidines, Oximes, Cumidines and Nitro Oxylene amongst others. These chemicals are used as intermediates in colourants, pigment, agro chemicals and pharmaceuticals. These products are customised as per specific customer requirements and manufactured in low volumes. As they are non-standardised products and enjoy higher value, the focus is based on quality of product, long-term relationships, stable and sustainable operations as well as global best practices for suppliers and customers.
Revenues from Fine and Speciality Chemicals stood at INR 3593.600 Million for FY 2016-17 compared to INR 3933.700 Million for FY 2015-16. This segment contributed 30% to the total revenues during the year. The EBIT margin stood at 23.7% in FY 2016-17. The performance in the Fine and Speciality Chemicals segment was impacted due to interruption in operations during the second half of FY 2016-17 owing to fire in one of the distillation columns.
PERFORMANCE PRODUCTS
Fluorescent Whitening Agent segment has been renamed to Performance Products segment in order to transform the product portfolio and include a wide range of products. Performance Products is an application chemical. Major constituent of this segment is Optical Brightening Agent (OBA), which is used in varied industries like Paper, Detergents, Textiles, Coating applications in Printing and Photographic paper. These products are offered to the customers as per their desired specification across liquid, solid and powdered forms. The Company is the world’s only fully-integrated manufacturer of Fluorescent Whitening Agent having vertical integration from Toluene to PNT and further into DASDA and OBA. The Performance Products segment has an innovation-led team in place and there are application labs in all segments for testing and post-sales support. Your Company has a wide network of global clientele for Performance Products supplies and it enjoys a competitive advantage over peers due to its vertical integration from Toluene to OBA. This helps your Company to customise raw material at each process depending upon the customer requirement, resulting in superior quality. Your Company would continue to benefit from the steady demand in the end-user industries, with better customer acceptance.
In FY 2016-17, revenues from Performance Products segment stood at INR 2400.900 Million compared to INR 2736.800 Million in FY 2015-16. This segment contributed 19% to total revenues during the year. The performance has to be seen in the light of the one-time incident in the form of plant closure due to excessive flooding in Hyderabad.
OUTLOOK
Going into FY 2017-18, the Company is positively placed to capture the growth opportunities arising in the end-user industries. After certain one-time events which impacted the performance in the year gone by, your Company has restarted all but one of the facilities and remains confident of getting back to normalcy. All your Company’s Strategic Business Units (SBUs) including Basic Chemicals, Fine and Speciality Chemicals, and Performance Products are expected to deliver accelerated growth in the forthcoming year owing to continued transformation in the product portfolio and steady recovery in demand.
Fine and Speciality Chemicals segment would lead the growth pack for the Company as a result of encouraging demand scenario in the global as well as domestic markets and higher contribution from recently launched personal care and pharma intermediates. This will be further supported by better off take in agrochemical intermediates due to increasing market share of agro-chemicals in the export markets as well as favorable agro-climatic conditions in the domestic market.
Performance Products segment which now includes a wide range of products is expected to demonstrate decent performance in the upcoming year led by several strategic initiatives undertaken by your Company in the past as well as better customer acceptance for Optical Brightening Agents (OBA). This will help improve the utilisation rates and profitability in the Performance Products segment.
In addition to the above initiatives, the Company expects the greenfield project of Phenol and Acetone to be commissioned in the last quarter of the current financial year thereby providing further stimulus for earnings expansion.
STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2017
(INR IN MILLION)
|
Particulars |
Quarter ended |
Nine months ended |
|
|
|
31.12.2017 (Unaudited) |
30.09.2017 (Unaudited) |
31.12.2017 (Unaudited) |
|
INCOME FROM OPERATIONS |
|
|
|
|
Revenue from operations |
3711.445 |
3549.743 |
10877.447 |
|
Other Income |
6.315 |
13.218 |
39.256 |
|
Total
Income from Operations |
3717.760 |
3031.736 |
10916.703 |
|
|
|
|
|
|
EXPENSES |
|
|
|
|
Cost of Materials consumed |
2144.407 |
1959.766 |
6046.911 |
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
42.890 |
48.686 |
51.632 |
|
Excise Duty |
--- |
(0.108) |
242.524 |
|
Employee benefits expense |
346.162 |
329.902 |
990.698 |
|
Finance Costs |
90.187 |
107.378 |
292.134 |
|
Depreciation and Amortization expenses |
129.704 |
132.641 |
385.724 |
|
Power and Fuel expenses |
300.084 |
297.706 |
885.416 |
|
Other Expenditure |
357.156 |
389.402 |
1109.840 |
|
Total
Expenses |
3410.590 |
3265.373 |
10004.879 |
|
Profit/(Loss) before Exceptional Items and tax |
307.170 |
297.588 |
911.824 |
|
Exceptional Items |
--- |
--- |
--- |
|
Profit / (Loss) before Tax |
307.170 |
297.588 |
911.824 |
|
Tax Expenses |
|
|
|
|
Current Tax |
64.561 |
95.814 |
246.839 |
|
Deferred Tax |
39.173 |
6.487 |
62.489 |
|
Prior Period Adjustments |
--- |
(28.851) |
(28.851) |
|
Total |
103.734 |
70.721 |
280.477 |
|
Profit/Loss for the period |
203.436 |
226.867 |
631.347 |
|
Other comprehensive
income |
|
|
|
|
Items that will not be reclassified to profit or loss |
|
|
|
|
Equity Instruments through Other comprehensive income |
--- |
--- |
--- |
|
Remeasurement of the defined benefit plans |
(6.000) |
0.250 |
(11.155) |
|
Income tax related of items above |
2.031 |
(0.081) |
3.784 |
|
Other comprehensive income (net of
tax) |
(3.969) |
0.169 |
(7.371) |
|
Total comprehensive income for the
period |
199.467 |
65.702 |
623.976 |
|
Paid up equity share capital (Face value of INR 2/- each) |
261.423 |
261.423 |
261.423 |
|
Basic and Diluted
Earnings per share (before Exceptional
items) of INR 2/- each (not annualized) |
1.56 |
1.74 |
4.83 |
|
Basic and Diluted
Earnings per share (after Exceptional
items) of INR 2/- each (not annualized) |
1.56 |
1.74 |
4.83 |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(INR In Million)
|
Particulars |
Quarter
ended |
Nine months ended |
|
|
|
31.12.2017 (Unaudited) |
30.09.2017 (Unaudited) |
31.12.2017 (Unaudited) |
|
1.
Segment Revenue |
|
|
|
|
a) Basic Chemicals |
1892.406 |
1663.291 |
5495.225 |
|
b) Fine and Speciality Chemicals |
1223.894 |
1128.551 |
3420.546 |
|
c) Performance Products |
673.569 |
842.055 |
2173.407 |
|
d) Others un-allocable |
--- |
13.831 |
15.354 |
|
Total |
3789.869 |
3647.728 |
11104.532 |
|
Less: Inter segment revenue |
78.424 |
99.985 |
227.085 |
|
Total income
from operations (net sales) |
3711.445 |
3549.743 |
10877.447 |
|
2.
Segment Results before Tax and interest |
|
|
|
|
a) Basic Chemicals |
283.480 |
262.053 |
781.598 |
|
b) Fine and Speciality Chemicals |
270.893 |
262.058 |
847.272 |
|
c) Performance Products |
(12.918) |
0.461 |
(52.514) |
|
Total |
541.455 |
524.572 |
1576.356 |
|
Less: Interest |
90.187 |
107.378 |
292.134 |
|
Other
un-allocable expenditure (net off un-allocable income) |
144.098 |
119.606 |
372.398 |
|
Total Profit
Before Tax |
307.170 |
297.588 |
911.824 |
|
3.
Segment Assets |
|
|
|
|
a) Basic Chemicals |
3925.174 |
3852.944 |
3925.174 |
|
b) Fine and Speciality Chemicals |
4268.961 |
4028.985 |
4268.961 |
|
c) Performance Products |
3795.428 |
3800.825 |
3795.428 |
|
d) Others un-allocable |
4448.165 |
4410.675 |
4448.165 |
|
Total Assets |
16437.728 |
16093.429 |
16437.728 |
|
4.
Segment Liabilities |
|
|
|
|
a) Basic Chemicals |
1042.088 |
728.854 |
1042.088 |
|
b) Fine and Speciality Chemicals |
629.130 |
236.372 |
629.130 |
|
c) Performance Products |
616.181 |
617.768 |
616.181 |
|
d) Others un-allocable |
6393.706 |
6631.635 |
6393.706 |
|
Total Liabilities |
8681.105 |
8533.775 |
8681.105 |
Notes:
1. The Company has adopted Indian Accounting Standards (Ind AS) from April 01, 2017 with transition date of April 01, 2016. The financial results have been prepared in accordance with Ind AS as prescribed under Section 133 of the Companies Act, 2013, read with Rule 3 of the Companies (India Accounting Standard) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. The financial results for the quarter and nine months ended December 31, 2016 are Ind AS compliant.
2. Reconciliation of Net Profit for the quarter and nine months ended December
31, 2016 as previously reported (referred to as 'Indian GAAP ) vis-a-vi Ind AS
is given below:
|
Particulars |
Quarter
ended |
Nine month ended |
|
|
31.12.2016 (Unaudited) |
31.12.2016 (Unaudited) |
|
Net Profits as per previous Indian GAAP |
80.109 |
912.817 |
|
Effect of fair valuation as Deemed Cost on depreciation for Plant and Machinery (Net of tax) |
(9.342) |
(30.998) |
|
Actuarial Loss on gratuity recognized in Other Comprehensive Income |
7.874 |
16.615 |
|
Others (Net of tax) |
(5.065) |
(3.055) |
|
Net profit before Other Comprehensive Income (OCI) as per Ind AS |
73.576 |
895.379 |
|
Other Comprehensive Income (net of tax) |
(7.874) |
(16.615) |
|
Total Comprehensive Income income under Ind AS |
65.702 |
878.764 |
3. Out of issue proceeds of Rs.15,000,00 Lakhs from the Qualified institutions Placements, INR 35.687 Million were utilised towards share issue expenses and INR 1390.000 Million has been utilised for the object stated in the offer document. Pending utilisation, INR 74.313 Million have been invested in Liquid Mutual Funds.
4. Board of Directors, at their meeting held on December 11, 2017 has approved
raising of funds by way of Qualified Institutions Placement of equity shares in
accordance with the provisions of Chapter VIII of Securities and Exchange Board
of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 as
amended from time to time and other applicable laws, up to an amount not
exceeding INR 1500.000 Million.
5. According to the requirements of Ind AS and SEBI (Listing Obligations and Disclosure
Requirements) Regulations 2015, revenue for the corresponding previous quarters
ended December 31, 2016 and for the nine months ended December 31, 2016 were
reported inclusive of Excise Duty. The Government of India has implemented
Goods and Service Tax ("GST") from July 01, 2017 replacing Excise
Duty, Service Tax and various other indirect taxes. As per ind AS 18, the
revenue for the quarter ended December 31, 2017, is reported net of GST. Had
the previously reported revenue shown net of excise duty, comparative revenue
of the Company would have been as follow:.
|
Particulars |
Quarter
ended |
Nine months ended |
|
|
|
31.12.2017 (Unaudited) |
30.09.2017 (Unaudited) |
31.12.2017 (Unaudited) |
|
revenue from
operations (Net OF Excise Duty) |
3711.445 |
2839.189 |
10634.923 |
6. With respect to fire incident in October 2016, the Company has lodged
insurance claims, both for replacement value of the damaged facilities and loss
of profits due to business interruption. The above financial results include
INR 183.290 Million (Net of loss on account of fire) against expected
settlement under Fine & Speciality Chemicals Segment which was recognised
during quarter ended June 30, 2017. Remaining balance shall be accounted upon
final settlement of claims. The Company received INR 75.000 Million as an
interim payment against the above claims during quarter ended June 30, 2017.
7. The exceptional item for the nine months ended December 31, 2016 of INR
707.718 Million pertains to profit on sale of land and surrender/ assignment of
leasehold rights in land at Pune.
8. The above Unaudited financial results were reviewed by the Audit Committee
and have been considered and approved by the Board of Directors at their
meeting held on January 18, 2018.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
In respect of income tax matters |
9.860 |
9.860 |
|
In respect of sales tax / vat matters |
7.284 |
5.943 |
|
In respect of excise matters |
49.323 |
21.841 |
|
Bank Guarantees: |
|
|
|
Financial |
98.048 |
115.533 |
|
Performance |
252.551 |
293.642 |
|
In respect of Stamp duty matter |
2.285 |
2.285 |
|
Disputed Labour Matters |
Amount Not
ascertained |
|
|
In respect of future cash outflow in respect of contingent
liabilities is determinable only on receipt of judgments pending at various
forums/authorities |
||
FIXED ASSETS:
Tangible Assets
· Freehold Land
Leasehold
Land
Plant
and Machinery
Factory
and Other Buildings
Roads
Office
Equipments
Furniture
and Fixture
Vehicles
Intangible Assets
·
Goodwill
Computer
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No 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
|
INR |
|
US Dollar |
1 |
INR 66.70 |
|
UK Pound |
1 |
INR 93.14 |
|
Euro |
1 |
INR 81.43 |
INFORMATION DETAILS
|
Information
Gathered by : |
ARC |
|
|
|
|
Analysis Done by
: |
NIS |
|
|
|
|
Report Prepared
by : |
IND |
SCORE FACTORS
|
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 |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.