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|
MIRA INFORM REPORT
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Report No. : |
485313 |
|
Report Date : |
10.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
SEYA INDUSTRIES LIMITED (w.e.f
06.06.2011) |
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|
|
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Formerly Known
As : |
SRIMAN ORGANIC CHEMICAL INDUSTRIES LIMITED |
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Registered
Office : |
T-14, M.I.D.C., Tarapur, Boisar, District – Thane – 401506, |
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Tel. No.: |
91-22-26732894 - 66779071 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
11.10.1990 |
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Com. Reg. No.: |
11-058499 |
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Capital
Investment / Paid-up Capital : |
INR 1758.617 Million |
|
|
|
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CIN No.: [Company Identification
No.] |
L99999MH1990PLC058499 |
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IEC No.: |
Not Divulged |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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GSTIN : |
Not Divulged |
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PAN No.: [Permanent Account No.] |
Not Available |
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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
: |
The Subject is engaged in manufacturing of Speciality chemicals, Pharmaceutical Intermediates, Agrochemical Intermediates and Inorganic Chemical Intermediates. (Registered activity) |
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No. of Employees
: |
132 (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+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject was incorporated in the year 1990. It is engaged in
manufacturing of specialty chemicals, pharmaceutical intermediates,
agrochemical intermediates and inorganic chemical intermediates. For the financial year 2017, the company has achieved revenue growth
of 12.10% as compared to the previous year along with a decent profit margin
of 13.63%. The sound financial risk profile of the company is marked by adequate
net worth base due to equity infused along with low debt balance sheet
profile. Rating takes into account the subject’s long established track of
business operations along with extensive experience of its promoters. The ratings however continue to be constrained by the volatility in
raw material prices which may affect the profitability margins, working
capital intensive nature of operations and competitive nature of the
industry. Payments are reported to be regular. In view of aforesaid, the subject can be considered for business
dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low
Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High
Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Borrowing = A- |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
27.04.2017 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Borrowing = A2 |
|
Rating Explanation |
Strong degree of safety and low credit risk. |
|
Date |
27.04.2017 |
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 10.01.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED
MANAGEMENT NON-COOPERATIVE: Tel. No.: 91-22-26732894 –
66779071
Tel.
No.: 91-66779569 Not Exist
LOCATIONS
|
Registered Office / Factory : |
T-14, M.I.D.C., Tarapur, Boisar, District – Thane – 401506, |
|
Tel. No.: |
91-22-26732894 - 66779071 |
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Fax No.: |
91-22-66732666 |
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E-Mail : |
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Website : |
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Corporate Office : |
B-12, 5th Floor, 502 Ghanshyam Chambers, New Link Road, Andheri (West),
Mumbai – 400053, Maharashtra, India |
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Tel. No.: |
91-91-22-26732894 | 91-22-66779071 |
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Fax No.: |
91-22-66779569 |
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E-Mail : |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Ashok Ghanshyamdas Rajani |
|
Designation : |
Managing Director |
|
Address : |
1001, 10th Floor, Kanta Apartments, East Avenue, Road
No.10, Santacruz (West), Mumbai – 400054, Maharashtra, India |
|
Date of Appointment : |
24.09.2009 |
|
DIN No.: |
01839535 |
|
|
|
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Name : |
Mr. Asitkumar Bhowmik |
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Designation : |
Director |
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Address : |
A1/105 Ostwal Empire, Tarapurroad, Boisar – 401501, Maharashtra,
India |
|
Date of Appointment : |
02.04.2011 |
|
DIN No.: |
03522132 |
|
|
|
|
Name : |
Mr. Anand Devidas Taggarsi |
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Designation : |
Director |
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Address : |
Flat No. 13, Green Acre CHS, Plot No. 19, Amritvan,
Goregaon (East), Mumbai – 400063, Maharashtra, India |
|
Date of Appointment : |
27.08.2014 |
|
DIN No.: |
06959365 |
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|
|
|
Name : |
Mrs. Kalpana Tirpude Nasikrao |
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Designation : |
Director |
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Address : |
Tirpude Niwas, Near Sardar Police Station Civil Lanes,
Nagpur GPO, Nagpur, Mumbai - 440001, Maharashtra, India |
|
Date of Appointment : |
23.04.2015 |
|
DIN No.: |
07166478 |
KEY EXECUTIVES
|
Name : |
Mrs. Manisha Babubhai Solanki |
|
Designation : |
Company Secretary |
|
Address : |
10/C, Velani Estate, Rani Sati Marg, Khot Kuva Road, Malad
(East), Mumbai - 400097, Maharashtra,
India |
|
Date of Appointment : |
01.02.2013 |
|
PAN No.: |
BKWPS3240M |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on September 2017
|
Category of
shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares |
|
|
(A) Promoter & Promoter Group |
18335000 |
74.53 |
|
|
(B) Public |
6265000 |
25.47 |
|
|
Grand
Total |
24600000 |
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 |
|
|
A1) Indian |
0.00 |
|
|
|
Individuals/Hindu
undivided Family |
7527259 |
30.60 |
|
|
ASHOK GHANSHYAMDAS RAJANI |
4765329 |
19.37 |
|
|
SHALINI ASHOK RAJANI |
2761930 |
11.23 |
|
|
Any Other
(specify) |
10807741 |
43.93 |
|
|
Sunlife Trusteeship Private Limited - A/c.
Ekadantay Family Trust |
265000 |
1.08 |
|
|
Sunlife Trusteeship Private Limited - A/c.
Bhaskarya Family Trust |
263888 |
1.07 |
|
|
Ankita Trusteeship Private Limited - A/c.
Gopi Family Trust |
263888 |
1.07 |
|
|
Sunlife Trusteeship Private Limited - A/c.
Koradi Family Trust |
277777 |
1.13 |
|
|
Ankita Trusteeship Private Limited - A/c.
Badrinath Family Trust |
277777 |
1.13 |
|
|
Sunlife Trusteeship Private Limited - A/c.
Bhagvate Family Trust |
264444 |
1.07 |
|
|
Sunlife Trusteeship Private Limited - A/c.
Balchandra Family Trust |
291666 |
1.19 |
|
|
Ankita Trusteeship Private Limited - A/c.
Ganga Family Trust |
263888 |
1.07 |
|
|
Ankita Trusteeship Private Limited - A/c.
Godavari Family Trust |
263888 |
1.07 |
|
|
Ankita Trusteeship Private Limited - A/c.
Ghanshyamdas Family Trust |
269444 |
1.10 |
|
|
Sunlife Trusteeship Private Limited - A/c.
Gayatri Family Trust |
264166 |
1.07 |
|
|
Sunlife Trusteeship Private Limited - A/c.
Arjunya Family Trust |
263888 |
1.07 |
|
|
Ankita Trusteeship Private Limited - A/c.
Mahalaxmi Family Trust |
266111 |
1.08 |
|
|
Sunlife Trusteeship Private Limited - A/c.
Aditya Family Trust |
266666 |
1.08 |
|
|
Ankita Trusteeship Private Limited - A/c.
Somnath Family Trust |
277777 |
1.13 |
|
|
Ankita Trusteeship Private Limited - A/c.
Sindhu Family Trust |
265555 |
1.08 |
|
|
M/S WHIZ ENTERPRISE PRIVATE LIMITED |
6501918 |
26.43 |
|
|
Sub Total A1 |
18335000 |
74.53 |
|
|
A2) Foreign |
0.00 |
|
|
|
A=A1+A2 |
18335000 |
74.53 |
|
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/ |
2005000 |
8.15 |
|
|
RELIANCE CAPITAL TRUSTEE CO. LTD-A/C
RELIANCE SMALL CAP FUND |
2005000 |
8.15 |
|
|
Foreign
Portfolio Investors |
10274 |
0.04 |
|
|
Financial
Institutions/ Banks |
1400 |
0.01 |
|
|
Sub Total B1 |
2016674 |
8.20 |
|
|
B2) Central
Government/ State Government(s)/ President of India |
0 |
0.00 |
|
|
B3)
Non-Institutions |
0 |
0.00 |
|
|
Individual share
capital upto INR 0.200 Million |
2112881 |
8.59 |
|
|
Individual share
capital in excess of INR 0.200 Million |
1008362 |
4.10 |
|
|
JAYESH M PARMAR |
400000 |
1.63 |
|
|
VEENA M KHATRI |
283800 |
1.15 |
|
|
NBFCs registered
with RBI |
350 |
0.00 |
|
|
Any Other
(specify) |
1126733 |
4.58 |
|
|
Clearing Members |
27429 |
0.11 |
|
|
Bodies Corporate |
680642 |
2.77 |
|
|
GOVINDSHREE SECURITIES FISCAL LTD |
249900 |
1.02 |
|
|
ZILLOW REAL ESTATE LLP |
300000 |
1.22 |
|
|
NRI – Repat |
4592 |
0.02 |
|
|
NRI – Non- Repat |
374720 |
1.52 |
|
|
LLP / Partnership Firm |
6138 |
0.02 |
|
|
HUF |
33212 |
0.14 |
|
|
Sub Total B3 |
4248326 |
17.27 |
|
|
B=B1+B2+B3 |
6265000 |
25.47 |
|
BUSINESS DETAILS
|
Line of Business : |
The Subject is engaged in manufacturing of Speciality chemicals, Pharmaceutical Intermediates, Agrochemical Intermediates and Inorganic Chemical Intermediates. (Registered activity) |
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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 : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
132 (Approximately) |
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Bankers : |
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Facilities : |
NOTE: Long-term
Borrowings Rupee Term Loan from banks comprises of Loan taken for expansion project of INR 932.653 Million and Car loan of INR 0.357 Million Term loan for expansion of project is secured by way of first charge, having pari-passu rights, on factory - land and building (Save and except stock and book debts), situated at one of the Company’s location. Car loan from bank is secured against hypothecation of
Car. |
|
Auditors : |
|
|
Name : |
Anil Chauhan and Associates Chartered Accountants |
|
Address : |
Plot No. 77, Kherwadi, Bandra (East), Mumbai – 400051, Maharashtra,
India |
|
Mobile No.: |
91-9987959907 |
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E-Mail : |
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|
|
|
|
Statutory Auditor : |
Jagiwala and Associates Chartered Accountants |
|
|
|
|
Cost Auditor : |
Hemant Shah and Associates Cost Accountants |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Associates/Subsidiaries : |
Not Available |
CAPITAL STRUCTURE
As on 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
INR 10/- each |
INR 250.000 Million |
|
151300000 |
Non-Convertible Redeemable Preference Shares |
INR 10/- each |
INR 1513.000 Million |
|
|
Total
|
|
INR 1763.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20350000 |
Equity Shares |
INR 10/- each |
INR 203.500
Million |
|
151261714 |
Non-Convertible Redeemable Preference Shares |
INR 10/- each |
INR 1512.617 Million |
|
|
Total
|
|
INR 1716.117
Million |
The reconciliation of
the number of shares outstanding is set out below
|
|
As on 31.03.2017 |
|
Equity Shares at the
beginning of the year |
11000000 |
|
Movement during the year |
+9350000 |
|
Equity Shares at
the end of the year |
20350000 |
|
NCRPS at the beginning of the year |
151261714 |
|
Movement during the year |
-- |
|
NCRPS at the end of the year |
151261714 |
The details of
shareholders holding more than 5% of equity share
|
Name of the
shareholders |
As at March 31, 2017 |
|
|
|
No. of Shares |
% |
|
Mr. Ashok G Rajani |
4765329 |
23.42 |
|
Mrs. Shalini A Rajani |
2761930 |
13.57 |
|
Whiz Enterprise Private Limited |
2651918 |
13.03 |
|
Reliance Small Cap fund |
2000000 |
9.83 |
Rights, preferences
and restrictions attached to shares
The Company has only one class of Equity Shares having a par value of INR10/- per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of Shareholders, except in case of interim dividend. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.
The Company has not allotted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back during the period of five years immediately preceding the Balance Sheet date.
During the period the Company has allotted 9,350,000 Equity Shares and 4,250,000 convertible warrants of face value of INR 10/- each and at a premium of INR170/-. Out of 4,250,000 convertible warrants, 3,850,000 warrants have been issued to Promoters (including related Parties) and 400,000 warrants have been issued to Non-Promoters, on a preferential basis entitling the allottee of warrants, from time to time to apply for and obtain allotment of one equity share of the face value of INR 10/- each fully paid up against each of such warrant at Price and on such terms and conditions as have been approved in the Extra-Ordinary General Body Meeting (EOGM) on November 1, 2016 in accordance with applicable provisions of law including SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended thereof. The Company has received full subscription money from the Promoters (including related parties) being 100% of the warrant price and subscription money from Non-Promoter being 25% of warrant price in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. Fully paid-up equity shares of the face value of INR 10/- each of the Company will be allotted to both Promoters (including Related parties) and Non-Promoters on receipt of balance 75% warrant price from Non-Promoters on each warrant within eighteen months from 1st November 2016.
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 |
1716.117 |
1622.617 |
110.000 |
|
(b) Reserves & Surplus |
2751.414 |
780.910 |
541.440 |
|
(c) Money received against
share warrants |
711.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
1512.617 |
|
Total
Shareholders’ Funds (1) + (2) |
5178.531 |
2403.527 |
2164.057 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1761.161 |
3474.944 |
1393.618 |
|
(b) Deferred tax liabilities
(Net) |
195.988 |
152.344 |
135.711 |
|
(c) Other long term
liabilities |
63.389 |
529.176 |
1857.127 |
|
(d) long-term provisions |
1.920 |
1.309 |
0.813 |
|
Total
Non-current Liabilities (3) |
2022.458 |
4157.773 |
3387.269 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
572.781 |
390.921 |
470.669 |
|
(b) Trade payables |
167.072 |
57.805 |
63.300 |
|
(c) Other current liabilities |
106.003 |
93.522 |
81.696 |
|
(d) Short-term provisions |
46.450 |
76.813 |
30.964 |
|
Total
Current Liabilities (4) |
892.306 |
619.061 |
646.629 |
|
|
|
|
|
|
TOTAL |
8093.295 |
7180.361 |
6197.955 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
4216.041 |
3970.926 |
3551.331 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
2135.128 |
1609.439 |
1456.500 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
111.550 |
111.320 |
91.302 |
|
(d) Long-term Loan and Advances |
6.242 |
5.983 |
5.496 |
|
(e) Other Non-current assets |
11.415 |
6.079 |
0.835 |
|
Total
Non-Current Assets |
6480.376 |
5703.747 |
5105.464 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
311.699 |
284.243 |
417.261 |
|
(c) Trade receivables |
791.723 |
664.198 |
524.195 |
|
(d) Cash and cash equivalents |
27.274 |
20.042 |
18.464 |
|
(e) Short-term loans and
advances |
199.554 |
312.506 |
4.696 |
|
(f) Other current assets |
282.669 |
195.625 |
127.875 |
|
Total
Current Assets |
1612.919 |
1476.614 |
1092.491 |
|
|
|
|
|
|
TOTAL |
8093.295 |
7180.361 |
6197.955 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
3086.052 |
2752.804 |
2476.111 |
|
|
Other Income |
8.457 |
18.375 |
7.030 |
|
|
TOTAL
|
3094.509 |
2771.179 |
2483.141 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
2272.946 |
2033.055 |
2181.081 |
|
|
Purchases of Stock-in-Trade |
0.000 |
0.000 |
0.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
-32.783 |
135.348 |
-144.959 |
|
|
Employees benefits expense |
28.431 |
21.418 |
16.844 |
|
|
Other expenses |
78.552 |
80.431 |
88.487 |
|
|
TOTAL |
2347.146 |
2270.252 |
2141.453 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION |
747.363 |
500.927 |
341.688 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
141.258 |
127.194 |
99.104 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
606.105 |
373.733 |
242.584 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
138.896 |
109.321 |
105.487 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
467.209 |
264.412 |
137.097 |
|
|
|
|
|
|
|
Less |
TAX |
46.586 |
(3.423) |
6.790 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
420.623 |
267.835 |
130.307 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
579.557 |
340.088 |
209.781 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Dividend on Preference Shares |
15.126 |
15.127 |
0.000 |
|
|
Dividend on Equity Shares
(incl. DDT) |
24.493 |
13.239 |
0.000 |
|
|
Total
|
39.619 |
28.366 |
0.000 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
960.561 |
579.557 |
340.088 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
28.24 |
24.35 |
11.85 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
65.590 |
65.684 |
69.032 |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net cash flow from operating activity |
654.632 |
155.611 |
136.506 |
QUARTERLY RESULTS
|
Particulars |
30.06.2017 |
30.09.2017 |
|
Audited / Unaudited |
Unaudited |
Unaudited |
|
|
1ST Quarter |
2nd Quarter |
|
Net Sales |
801.270 |
821.830 |
|
Total Expenditure |
617.540 |
550.090 |
|
PBIDT (Excl OI) |
183.730 |
271.740 |
|
Other Income |
3.250 |
0.060 |
|
Operating Profit |
186.980 |
272.340 |
|
Interest |
44.260 |
46.380 |
|
Exceptional Items |
NA |
NA |
|
PBDT |
142.720 |
225.960 |
|
Depreciation |
36.120 |
36.730 |
|
Profit Before Tax |
106.600 |
189.230 |
|
Tax |
21.350 |
37.950 |
|
Provisions and contingencies |
NA |
NA |
|
Profit After Tax |
85.250 |
151.280 |
|
Extraordinary Items |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
|
Other Adjustments |
NA |
NA |
|
Net Profit |
85.250 |
151.280 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
93.64 |
88.07 |
77.27 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
3.90 |
4.14 |
4.72 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
26.83 |
10.38 |
10.59 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
2.40 |
1.76 |
0.82 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
0.12 |
0.09 |
0.07 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.34 |
0.58 |
0.34 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.46 |
1.64 |
0.89 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
0.17 |
0.26 |
0.30 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
1.23 |
2.32 |
2.31 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
5.29 |
3.94 |
3.45 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
13.63 |
9.73 |
5.26 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
5.20 |
3.73 |
2.10 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
8.12 |
11.14 |
6.02 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
1.81 |
2.39 |
1.69 |
|
|
|
|
|
|
Quick Ratio ((Current Assets –
Inventories) / Current Liabilities) |
1.46 |
1.93 |
1.04 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.64 |
0.33 |
0.35 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
1.40 |
2.42 |
17.58 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
1.81 |
2.39 |
1.69 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK PRICES
|
Face Value |
INR 10.00/- |
|
Market Value |
INR 728.10/- |
FINANCIAL ANALYSIS
[all figures are
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 |
110.000 |
1622.617 |
1716.117 |
|
Reserves & Surplus |
541.440 |
780.910 |
2751.414 |
|
Money received against share
warrants |
0.000 |
0.000 |
711.000 |
|
Share Application money
pending allotment |
1512.617 |
0.000 |
0.000 |
|
Net
worth |
2164.057 |
2403.527 |
5178.531 |
|
|
|
|
|
|
long-term borrowings |
1393.618 |
3474.944 |
1761.161 |
|
Short term borrowings |
470.669 |
390.921 |
572.781 |
|
Current Maturities of Long
term debt |
69.032 |
65.684 |
65.590 |
|
Total
borrowings |
1933.319 |
3931.549 |
2399.532 |
|
Debt/Equity
ratio |
0.893 |
1.636 |
0.463 |
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
|
2476.111 |
2752.804 |
3086.052 |
|
|
|
11.174 |
12.106 |
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
|
2476.111 |
2752.804 |
3086.052 |
|
Profit |
130.307 |
267.835 |
420.623 |
|
|
5.26% |
9.73% |
13.63% |
LEGAL
CASES
|
CASE DETAILS |
|||||||
|
Bench:- Bombay |
|||||||
|
Presentation Date:- 20.04.2016 |
|||||||
|
Lodging No:- |
CPL/308/2016 |
Failing Date:- |
20.04.2016 |
Reg. No.:- |
CP/713/2016 |
Reg. Date:- |
26.10.2016 |
|
|
|||||||
|
Petitioner:- |
ULTRA DRYTECH ENGINEERING LIMITED |
Respondent:- |
SEYA INDUSTRIES LIMITED |
||||
|
Petn.Adv:- |
R M PANDE CO (I14208 ) |
||||||
|
District:- |
MUMBAI |
||||||
|
Bench:- |
SINGLE |
Category: |
COMPANY PETITION U/SEC 433,434,439 COMPANIES ACT |
||||
|
Status:- |
Transferred |
Remark:- |
OFFICE OFFICE LETTER NO.COM./58/2017, DT. 01.02.2017 |
||||
|
Act:- |
Companies Act and Rules 1956 |
Under Section :- |
433 (E), 434, 439 |
||||
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
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 |
Yes |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
CORPORATE INFORMATION
Subject (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are traded on BSE Limited. The Company is engaged in manufacturing of Speciality chemicals, Pharmaceutical Intermediates, Agrochemical Intermediates and Inorganic Chemical Intermediates.
PERFORMANCE REVIEW
The Company delivered a strong performance with steady growth in profitability while recording progress on several strategic initiatives, including expansion plans even amidst extremely challenging backdrop for the chemical industry in wake of sharp decline in the global crude oil prices and related petrochemical intermediates and slow recovery in key emerging Markets. 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 enduser industries and markets served has enabled it to emerge stronger and better positioned to capture the opportunities ahead. Against this backdrop and in light of the several challenges faced from the wave of regional protectionism spread across the developed world and increased pitch for supporting local production to preserve jobs, the growth in export markets has been muted. These were coupled with BREIT 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, although re-entry of Iran as a global crude supplier improved the availability of higher grades of crudes in the mirage of reversing the waning prices of commodities.
Despite these head winds, the Company clocked double-digit growth of 12% (Y-o-Y) in revenues which stood at INR 3094.509 Million compared to PY INR 2771.179 Million despite decline in crude oil prices and related petrochemical intermediates, considerably reducing realisation of all products. Amplified operating margins and strong growth in volumes was equipoise by lower realisation steering to temperate growth in absolute revenues. Modernization and Upgradation initiatives taken by the Company to improve operating efficiency, abetted 49% growth in Earnings (Profit) Before Interest, Depreciation, Tax and Amortization (EBIDTA) to INR 747.400 Million from INR 500.900 Million (PY). The traction from newly introduced products has been instrumental in healthy trajectory in the Speciality Chemicals segment resulting in commendable growth in volumes and higher contribution in the overall product mix aggressive marketing. The company leveraged its strength by switching and enhancing the volumes of the Value added products to mitigate the impact from down cycle from the upstream product categories. Going ahead, the company will continue to widen and deepen its market presence.
Profit Before Tax stood at INR 467.209 Million whereas Profit after Tax was at INR 420.623 Million, up 77% and 57% respectively (Y-o-Y) breaking the ground of reduced realizations on account of lowering of crude oil prices and contributing to whopping Earnings Per Share at INR 28.24 on enhance capital compared to INR 24.35 per Share (PY).
Finance
The Company obeys to austere guiding principles to efficiently manage its working capital level and maintain its debt at a reasonable level. The long term debt of the Company increased during the year due to borrowing of Long Term Loans for Upgradation, Modernisation and Set-up of additional facility of Nitro Chlorobenzenes, expanding the Company’s footprint from 15000 TPA to 33000 TPA which resulted in modest increase in Interest cost on additional term borrowings. Depreciation increased due to capitalisation of the Upgraded and Modernised facility despite this the Company’s enhanced financials have tractioned advancement of financial parameters. The Company endures its emphasis to effectively manage its cash flows through prudent regulators to reduce the overall interest costs. Robust Cash flow, Repayment of Term loan and Effective management of working capital have leveraged Debt/Equity ratio at 0.29x with a Net Debt/ EBITDA of 1.30x, propounding much more financial flexibility for Upcoming Projects. The Overall Capital outlay of the Greenfield Expansion Project is `73,458 Lacs, which is being funded through a combination of Debt and Equity. The Company has achieved the financial closure for the said Project on March 25, 2017.
Winning Performance
SEYA, exhibited exhilarating performance during the year in retrospect.
The Seeds that the Company sowed 5 years back are now bearing the fruit and I am delighted to announce that in FY 2016-17 Revenue from Operation grew by almost 12% to INR 3086.100 Million while EBIDTA margin robustly increased to 24.22% (INR 747.400 Million) underscoring an extra-ordinary growth of 49% (PY INR 500.900 Million) even amidst extremely challenging backdrop of sharp declining global crude oil prices considerably reducing realisations. The Profit After Tax (PAT) stood at INR 420.600 Million up by a mammoth 57% as compared to INR 267.800 Million in previous year. The lordlier numbers also abridged the Net Debt to EBIDTA to 1.30 (PY 1.88). All of this has resulted in deleveraging of Debt: Equity and leveraging Interest Coverage ratio at 0.29x and 5.29x respectively.
While top-line growth was relegated due to alignment of product prices with that linked to crude oil, the positive momentum in Speciality Chemicals business was epitomised by the growth in volumes, margins and overall profitability. They continue to rototill their surplus in boosting their capabilities, which, they are confident, will enable and secure future growth and long-term value creation for their shareholders. On the main stay of good performance, the Board of Directors has recommended a dividend of INR 1.00 per share of a face value of INR 10 in line with previous year dividend rate despite the expanded Capital base.
Winning Outlook
Steady revival in global trade in 2017 and 2018 is expected to be driven by rebound in import demand from large Emerging Markets and Developing Economies (EMDEs). 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. 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.
India is currently at the brightest spot among global economies to deliver improving growth, as economic fundamentals remain stronger than in other emerging market economies with the combined impact of strong structural government reforms, RBI’s inflation focus supported by higher disposable income and improvement in economic activity. Implementation of bold reforms in economic and industrial policies has gathered momentum with the economy being restored on a high growth path. The Indian chemical industry stands to gain from this growth and the policy like ‘Make in India’ campaign and alongside theme of Ease-of-Business announced by the Government has been reciprocated by several global leading companies coming forward to commit investments in setting-up world-class manufacturing units in the country. Several large commitments in the Chemical sector will undoubtedly increase the output and contribution of the sector in the years ahead. India is witnessing a shift globally and Asia, being the epicentre of growth and enjoying abundant skilled resources, is emerging as the world’s chemical manufacturing hub. India enjoys low-cost manufacturing capabilities by virtue of relatively lower-cost labour, highly competent leadership and geographic proximity with the Middle East, one of the world’s key raw material sources. Recent developments contributing to a stronger and stable currency, positive governance environment and improvement in skills and capabilities is serving to enhance the competitive advantage. With the benefits of several tailwinds and the Government’s focus on eliminating the infrastructure gaps in the country through investments in the sector, India continues to emerge as a critical manufacturing hub for the Chemical Industry.
Structural advantage with a growing market and purchasing power due to growing disposable incomes and increasing urbanization have led to demand for paints, textiles, adhesives and construction. India has all the requisite ingredients for a Robust, High-growth Chemical Industry – the same ingredients that throttled Chemical Industry growth in China, which include a large and growing population, Mass urbanization and a rapidly expanding middle class supporting numerous consumer markets. “Never give up. Today is hard, tomorrow will be worse, but the day after tomorrow will be sunshine”. With a Pioneering Past, Persistent Present, and Purposeful Future, The Company continues to expand its footprint in Speciality Chemicals by ushering in products having wide spectrum of applications in Pharmaceuticals (like Paracetamol, floxacins, etc), Personal and Health Care Products (like Hair dyes, Protein and Health Supplements), Printing Inks and Paints (used in Laser/Ink jet Printers, for Road markings, etc), Agrochemicals (like DDT, etc) Insecticides/ Pesticides (like Quinalphos, etc), Rubber chemicals (for Leather protection), Textile dyes (Dye of Cotton and Denim fabrics), Thermic fluids (used as heating medium), etc. Seya’s strength lies in its in-depth product expertise, ability to adapt to new markets, provide superior Quality Products at Competitive Prices with Timely Delivery to the Satisfaction of the Customer. The company continues to focus totraction consistent, profitable and sustainable growth with its forward integration products in the Speciality Chemicals segment which witnessed Revenue from the segment contributing to almost 99% of the total revenue and those from the new products comprising 91% of Net Sales.
The world’s epicentre has shifted to Indian manufacturers to fill the void created by the deficit in supply owing to shutdown of Leading companies in China due to environmental concerns crafting highly lucrative opportunity for SEYA, which is well known as one of the lowest cost producers in its class of products globally, owing to the level of integration in their manufacturing processes and wide international market presence through merchant exports. With a sense of excitement and anticipation, the Company is diligently persevering to welcome its next level of transformational growth once the Commercial production from the proposed Greenfield expansion has been put on rolls.
They are positive about a stepped-up performance in FY 18 as the Speciality Chemicals are on a strong growth path. SEYA, with its diversified product portfolio catering across various businesses, unmatchable backward and forward integrated infrastructure and improved market sentiments, will continue delivering profitable growth, leading to higher returns and value creation for their Stakeholders.
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS ENVIRONMENT
Global
The year in retrospect remained 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 3.1% in 2017, which is projected to improve only marginally to 3.5% in 2018 largely on the back of recovery in emerging markets and select developing economies due to 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 medium-term 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 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, soft exports, declining investments and subdued productivity growth which is expected to rebound to 2.3% in 2017 and 2.5% in 2018 backed by expectations of fresh fiscal stimulus from the administration. Growth in 2017 is being led by cyclical recovery in inventory accumulation, rebounding consumer confidence and assumption of a looser fiscal policy stance backed by anticipated shift in fiscal policy tractioning financial markets and uplifiting business confidence.
Real GDP growth in the Euro area declined to 1.7% in 2016 as exports and investments lost momentum and is expected to continue at the same pace. A modest recovery is projected to be supported by a mildly expansionary fiscal stance, accommodative financial conditions, a weaker euro and beneficial spillovers from a likely U.S. fiscal stimulus. However, risks associated with Brexit coupled with uncertainty arising from elections in several countries, will weigh down on the growth.
In the United Kingdom (UK), the magnitude of the impact of Brexit is yet to be determined completely following a stronger than expected performance in the second half of 2016, leading to GDP growth of 1.8%. Real GDP growth is expected to improve marginally to 2.0% in 2017 but fall to 1.5% in 2018 as the impact of Brexit is projected to materialise more gradually than expected
The Japanese economy grew at 1.0%, fueled by stronger-than expected net exports in 2016 backed on the momentum of improving exports, a fiscal stimulus package and Tokyo Olympics (scheduled in 2020) related spending. Growth is expected to slow down to 0.6% in 2018 as the fiscal stimulus is withdrawn and imports recover.
The primary factor underlying the strengthening global outlook for 2018 over 2017 is the expected pickup in Emerging Markets and Developing Economies (EMDE) growth. EMDE is expected to grow at 4.5% in 2018 compared to 4.1% in 2017. 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. EMDEs grew at an estimated 3.4% in 2017, broadly in line with expectations and is expected to accelerate to 4.2% in 2018 and to an average of 4.7% in 2018-19. 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.
Growth in China is expected to reduce to 6.6% in 2018 compared to 6.7% in 2017 as the economy is rebalancing from industry to services which have now overtaken industry as the leading growth driver. However, continued reliance on policy stimulus measures, with rapid expansion of credit and slow progress in addressing corporate debt, raises the risk of a sharper slowdown or a disruptive adjustment. Capital outflows and depletion in foreign reserves have eased but remain a concern. Industrial production growth in China has stabilised at around 6% year-on-year in 2017 despite concerns of sluggish activity due to widespread overcapacity. Accommodative monetary policy continues to fuel consumer spending and growth.
The three key
transitions that are likely to continue influencing the global outlook are :
Policy uncertainty in advanced economies particularly the United States and the Euro Area.
Impact of Brexit and negotiations between the UK and European Union (EU).
Possible eruption of trade tensions amongst the major countries, triggered by geo-politics, currency movements or climate of protectionist tendencies in recovering advanced economies.
High corporate debt, declining profitability, weak bank balance sheets and vulnerability of large emerging market economies to external shocks.
Devaluation of Chinese Yuan, change in Chinese fiscal, business and social policies may play a major role in world commerce and economy.
Domestic
India’s economy has grown at a strong pace in recent years owing to the implementation of critical structural reforms, favorable terms of trade, and lower external vulnerabilities. India’s GDP is expected to grow by 7.2% in FY 2017-18 compared to 7.1% in FY 2016-17 and it is likely to remain the fastest growing major economy in the world with increased consumption post demonetisation and cheaper borrowing costs. 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. The economy is set to emerge from the cyclical downturn in infrastructure spending and asset creation at the backdrop of low oil and commodity prices and robust agricultural output. Lower energy costs accelerated overall consumption, public sector remunerations and favorable monsoons which in turn 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 barring momentary impacts by the ‘Demonetisation’ initiative, which resulted in short-term disruptions, tweaked by government actions to normalise economy post a successful demonetization drive. Downsiing 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.
Higher agricultural growth and Waning global oil prices have improved the fiscal deficit facilitating lower inflation and Greater macroeconomic stability at the backdrop of sustained fiscal consolidation and an anti-inflationary monetary policy. India witnessed four crucial reforms vi. Bankruptcy and Insolvency Code, 100% ownership in previously restricted sectors, Goods and Services Tax (GST) Amendment Bill and a monetary policy framework. 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.
Going Forward, Indian economy is set strengthen further owing to increased government spending in infrastructure and the implementation of Goods and Services Tax (GST). Good monsoon, higher private investment and expected surge in consumer spending led by pent up demand are other catalysts which will aid economy barring specific negative risks arising out of protectionism sentiment prevailing across various economies, higher interest rates by the Fed, upside risk to inflation, increasing crude oil prices, slower growth in investment and credit, rising bad loans issue and uncertain trade prospects with appreciating rupee. 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. 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 favorable 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.
CHEMICAL INDUSTRY
OVERVIEW AND OUTLOOK
Global
The global chemical industry has been expanding at a steady pace over the past couple of years with emerging Asian markets becoming a new manufacturing hub for the global chemical giants largely led by China where chemicals sales have increased manifold. Repelled by the slowdown in the economy and plant shutdowns resulting from pollution control strictures by its Government, has surfaced India as an obvious beneficiary bringing it to lead market position in the global chemical market. Over the past decade, India’s capacity expansion growth rate has been the 2nd highest after China. Between 2000-2016, with a CAGR of 8.8%, double the global industry’s growth rate on global level. Global chemical production will probably grow by 3.4% in 2018, the same pace as 2017 (+3.4%). A marginally highe expansion rate in the advanced economies (2016: +0.9%, 2017: 1.1%). Growth in the emerging markets will presumably weaken somewhat (2016: +5.4%, 2017: +5.1%).
Chemical production in the European Union is expected to remain modest against the backdrop of a sluggish domestic market. Despite naphtha-based European chemical industry benefits more from low oil prices than the gas-based production in the United States, the competitive pressure is expected to remain intense on export markets. With onstream of new production capacity being available for export In the United States, growth is expected to be accelerated in chemical production, overall chemical growth is likely to decelerate somewhat in the emerging markets of Asia, mainly due to the slowdown in China, which will affect the other developing countries in the region. In Japan, a weak overall economic environment and minimal growth is presumed in chemical production. In South America, the anticipated end of the recession in Argentina and Brail will result in slight growth in chemical production in the region.
The Indian chemical industry has been one of the most established and rapid growing sectors for the country and an integral part of the Indian economy even as the story has recently gained prominence. 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. Bulk chemicals account for 39% of the Indian chemical industry, followed by agrochemicals 20.3% and speciality chemicals 19.5%. Pharmaceuticals and biotechnology account for the remaining share. India’s growing per capita consumption and demand for agriculture related chemicals offer huge scope of growth for the sector in the near-term. Consequently, foreign firms have increasingly strengthened their presence in the Indian chemical space attracted by the emerging size and returns. 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’s disadvantages in feedstockposition and lack of adequate infrastructure have hindered its progress into the big league. Additionally, due to lack of innovation of new products or applications, these businesses have developed largely to meet immediate local demand, which requires relatively smaller investment. Not surprisingly, this industry is highly fragmented among 40,000 companies – where 60% of volume is produced by SMEs. The ‘Make in India’ initiative of the Government of India is also likely to add impetus to the emergence of India as a manufacturing hub for the chemical industry in the medium term. Overall, the Indian speciality chemical space is set to emerge as the fastest growing globally and is projected to reach USA 80-100 billion by FY 2023
INDIAN SPECIALTY
CHEMICAL INDUSTRY
The $ 25 billion Indian Speciality Chemicals Industry has grown from one dominated by small niche players into a multi-faceted global footprint and has been an integral part of the Indian economy even as the story has recently gained prominence. Speciality chemicals comprise high value, low volume chemicals recognized for their performance enhancing end use applications. Being ‘usage-specific’, speciality chemicals touch upon every population segment, finding downstream applications in paints, coatings, plastics, home care surfactants, flavours and fragrances. Traditionally, a majority of the Indian market was characterised by SMEs working around low costs but without processes, quality and customer engagement capabilities at par with global peers. 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.
In recent years, there has been a decisive shift, the Indian specialty chemicals industry moving from a generic space to a knowledge based and innovation driven niche. The industry grew from $ 16 billion in FY09-10 to 25 billion in FY13-14 and projected to grow to 70 billion by FY2020. The structural foundation of the Indian speciality chemicals sector remains strong, catalysed by a visible increase in the consumption of-value added high performance products in all spheres of life. India’s position as a manufacturing hub for specialty chemicals strengthened following an increasing shift in manufacturing capacities to Asia, following a weakening in Chinese exports and a sustained improvement in India’s competitiveness. 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 like the Government’s ‘Make in India’ and National Chemical Policy are aligned boost investments in the country 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. India’s emergence as a leading global speciality chemicals manufacturing location is fortified by improvements in infrastructure, regulation, licenses, taxes and other catalysts like:
Large population with
lowest per-capita consumption
Relatively strong GDP growth outlook
Rapid progress in key end-user industries domestically
Favourable initiatives by government
Development of chemical clusters with adequate infrastructure
Facilitating
international investment
‘Make in India’ campaign giving better visibility to the industry
Increased FDI and Capex spend in the sector
FINANCIAL PERFORMANCE
The Company’s continued focus in expanding business in newer horizon’s resulted significant growth in operations during the year. The Company has added another year of achievements in its success book. During the year, business delivered a record revenue performance exceeding `3Bn mark for the first time.
Net Sales during the year was INR 3086.052 Million as compared to INR 2752.804 Million in PY, reporting an increase by 12.11%. The prices of crude oil and related petrochemical intermediates, which form an important source of raw materials for the Company and which govern the Selling Prices of the Products, declined significantly thereby muting top-line growth. Despite this, overall volume growth stood healthy at 15% driven by balanced growth of almost 5% from the Speciality Chemicals contributing 99.34% of Revenue, followed by 0.53% in Pharmaceuticals and Agrochemicals/Inorganic Chemicals finishing the top-line at 0.04% and 0.1% respectively. The Company has aligned its capacities from Organic Chemicals to Speciality Chemicals. The new products launched continued to deliver double digit growth despite sharp decline in International Crude Oil prices which resulted in disruption of volume off-take by some customers, however the same was set-off as Global prices of crude oil stabilised at albeit lower levels.
COMPANY OUTLOOK
The company is in the business of manufacture of specialty chemicals which have applications in end user segments like Computer Printing Inks, Pigments and Paints, Pharmaceuticals, Personal and Health Care Products, Agrochemicals, Insecticides/Pesticides, Organic Chemical Intermediates, Rubber chemicals, Textile dyes, Thermic fluids, etc. The products proposed to be manufactured by the Company are falling under the category of Speciality Chemicals which have good demand and market potential in both domestic and International markets, with demand in domestic market expected to follow an accelerated growth path considering that the present capita consumption is only 40% of International standards. Moreover, after the REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) regulation imposed by European Countries and stringent Pollution Control norms being recently implemented in China, costs of handling effluents have increased resulting in relocation of manufacturing operations by large number of companies to India. Due to greater use of polyester and cotton-based fabrics, there has been a shift towards reactive dyes used in cotton-based fabrics and disperse dyes used in polyester, hence the demand is expected to grow with textile industry being the largest consumer however, substantial growth will also be driven by markets such as printing inks, paints and plastics considering increasing use of these products in recent times.
Speciality chemicals market size is set to touch USD 1,273 billion by 2024. Global speciality chemicals growth is primarily led by increasing population along with rapid industrialization shrinking the arable land. The world population is estimated to reach 9 billion by 2040, causing a surge in food demand. Substantial increase in yield is conceivable through use of agrochemicals. Governments across the world are encouraging agrochemicals use to secure food supply to meet the increasing food demand owing to drive industry growth. The global specialty chemicals market is expected to gain from strong growth in end user industries including construction and automotive. Growing consumer demand for lubricants to ease frictional forces in the vehicles will improve growth. Growing construction industry, particularly in China, India and Brazil, will push industry growth in the coming years. Present usage of specialty chemicals in India is significantly low when compared to developed markets. Per capita consumption of chemicals in India is much lower than the western countries, about 1/10th of the world average. The Indian middle-class household is expected to grow from 31 million in 2008 to 148 million by 2030, fueling huge demand for specialty chemicals in automotives, water treatment and construction.
Globally, Speciality chemicals are driven by extensive product and process innovation, a significant differentiator over the commoditized Indian chemical industry. Companies with strong technical expertise, high safety health and environment standards as well as deep customer relationships remain at the forefront to make significant headway in high-value industries. The Company has progressively leveraged chemistry skills to produce higher downstream products, expanding capacities to global scale. The Company has placed a greater focus on better value added chemical processes. Comparative low labour costs, excellent army of technical manpower, capabilities to research and develop facilities, potential to increase share in undeveloped domestic and global markets shall empower the company’s Speciality Chemicals growth. The company has geared itself for growth even in the backdrop of leaden markets by leveraging its low cost, fully integrated and automated manufacturing facilities with improved service skills though fluctuations in foreign exchange and crude oil prices may impact sales realisation however the operating profit margins shall continue to grow.
Cautionary Statement
The report contains forward-looking statements, identified by words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’ and so on. All statements that address expectations or projections about the future, but not limited to the Company’s strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realised. The Company’s actual results, performance or achievements could thus differ from those projected in any forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events.
UNSECURED LOAN
|
Unsecured Loan |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Long-term
Borrowings |
|
|
|
Loans and Advances from related parties |
828.150 |
2576.886 |
|
Total |
828.150 |
2576.886 |
INDEX
OF CHARGES:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of
Modification |
Date of
Satisfaction |
Amount |
Address |
|
1 |
G66474180 |
100136066 |
BANK OF BARODA |
23/11/2017 |
- |
- |
40000000.0 |
SIR P. M. ROAD BRANCH, LAXMI INSURANCE BUILDING,GROUND FLOOR, SIR P. M. ROAD, FORTMUMBAIMH400001IN |
|
2 |
G41615618 |
100091712 |
CENTBANK FINANCIAL SERVICES LIMITED |
01/04/2017 |
- |
- |
3750000000.0 |
Central Bank of India-MMO Bldg, 3rd Flr (East),55 Mahatma Gandhi Road, Fort,MumbaiMa400001IN |
|
3 |
C74316837 |
10609776 |
IFCI LIMITED |
29/12/2015 |
- |
- |
700000000.0 |
Earnest House, 9th Floor, NCPA MargNariman PointMumbaiMH400021IN |
|
4 |
G72209711 |
10435634 |
BANK OF BARODA (LEAD BANK) |
27/06/2013 |
24/08/2017 |
- |
1062100000.0 |
SIR P. M. ROAD BRANCH, LAXMI INSURANCE BUILDING,GROUND FLOOR, SIR P. M. ROAD, FORTMUMBAIMH400001IN |
|
5 |
G72212632 |
10435629 |
BANK OF BARODA (LEAD BANK) |
27/06/2013 |
24/08/2017 |
- |
1062100000.0 |
SIR P. M. ROAD BRANCH, LAXMI INSURANCE BUILDING,GROUND FLOOR, SIR P. M. ROAD, FORTMUMBAIMH400001IN |
|
6 |
C58370677 |
10539197 |
BANK OF BARODA |
24/12/2014 |
- |
18/06/2015 |
60000000.0 |
SIR P. M. ROAD BRANCH, LAXMI INSURANCE BUILDING,GROUND FLOOR, SIR P. M. ROAD, FORTMUMBAIMH400001IN |
|
7 |
B08704892 |
90352653 |
ICICI BANK LTD. |
13/04/1998 |
15/09/1993 |
24/03/2011 |
40000000.0 |
163; BACKBAY RECLAMATIONCUFFE PARADE; COLOABOMBAYMHIN |
|
8 |
B08703894 |
90352192 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
27/08/1993 |
18/11/1993 |
24/03/2011 |
18700000.0 |
IDBI TOWERCUFFE PARADEBOMBAYMHIN |
|
9 |
B08705931 |
90352124 |
INDUSTRIAL FINANCE CORPORATION |
13/04/1992 |
15/09/1993 |
24/03/2011 |
38000000.0 |
BANK OF BARODA BUILDING16; SANSAD MARGNEW DELHIDLIN |
|
10 |
B08705519 |
90352199 |
ICICI BANK LTD. |
20/09/1993 |
18/11/1993 |
24/03/2011 |
8300000.0 |
163; BACKBAY RECLAMATIONBOMBAYMHIN |
STATEMENT OF STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH
SEPTEMBER 2017
|
|
|
Particulars |
quarter ended |
quarter ended |
6 months ended |
|
|
|
|
30.09.2017 |
30.06.2017 |
30.09.2017 |
|
1 |
|
Income from
Operations |
|
|
|
|
|
|
Sales/Income from Operations (Gross) |
821.826 |
801.271 |
1623.097 |
|
|
|
b) Other Operating Income |
0.596 |
3.251 |
3.847 |
|
|
Total Income from
Operations (Net) |
822.422 |
804.522 |
1626.944 |
|
|
2 |
Expenses |
|
|
|
|
|
|
a) |
Cost of Materials consumed |
526.554 |
572.074 |
1098.626 |
|
|
b) |
Employee benefit expenses |
8.301 |
7.458 |
15.759 |
|
|
c) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
0.690 |
24.216 |
24.906 |
|
|
d) |
Finance Costs |
46.380 |
44.261 |
90.641 |
|
|
e) |
Depreciation and amortization expense |
36.733 |
36.115 |
72.848 |
|
|
f) |
Other expenses |
14.531 |
13.797 |
28.328 |
|
|
Total Expenses |
633.189 |
697.921 |
1331.110 |
|
|
|
|
|
|
|
|
|
9 |
Profit /(Loss) from
ordinary activities before tax |
189.233 |
106.601 |
295.834 |
|
|
10 |
Tax Expense |
37.951 |
21.352 |
59.303 |
|
|
11 |
Net Profit /(Loss)
from ordinary activities after tax |
151.283 |
85.249 |
236.532 |
|
|
|
Other Comprehensive
Income: |
|
|
|
|
|
|
Other Comprehensive
Income: |
|
|
|
|
|
|
A. Items that will not be reclassified to profit or loss |
(0.060) |
(0.060) |
(0.120) |
|
|
|
Total Other
Comprehensive Income for the period |
151.223 |
85.189 |
236.412 |
|
|
|
|
|
|
|
|
|
12 |
Paid up equity share capital (Eq. shares of INR 10/- each) |
246.000 |
203.500 |
246.000 |
|
|
13 |
Reserve excluding revaluation reserves |
|
|
|
|
|
14 |
|
Earnings per share (before/after extraordinary items) of Rs.10/- each |
|
|
|
|
|
|
Basic & Diluted |
6.15 |
4.19 |
9.61 |
STATEMENT OF ASSETS
ANS LIABILITIES AS ON 30TH SEPTEMBER 2017
|
SOURCES
OF FUNDS |
30.09.2017 |
|
|
(Unaudited) |
|
|
|
Non-Current Assets |
|
|
(a) Property, Plant and
Equipment |
7332.552 |
|
(b) Capital Work in progress |
2892.897 |
|
(c) Financial Assets |
|
|
(i)
Loans and Advances |
6.243 |
|
(ii)
Deferred Tax Assets |
115.470 |
|
|
|
|
(d) Other Non-Current Assets |
1.839 |
|
|
|
|
Total
Non- Current Assets |
10349.001 |
|
|
|
|
Current
Assets |
|
|
(a) Inventories |
288.301 |
|
(b) Financial Assets |
|
|
(i)
Trade Receivables |
909.291 |
|
(ii)
Cash and cash equivalents |
2.170 |
|
(iii)
Bank Balance other than (iii) above |
219.589 |
|
(iv)
Loans |
263.296 |
|
|
|
|
(c) Other current Assets |
305.424 |
|
Total
Current Assets |
1988.072 |
|
|
|
|
TOTAL
ASSETS |
12337.073 |
|
|
|
|
(B)
EQUITY AND LIABILITIES |
|
|
|
|
|
1
EQUITY |
|
|
(a)
Equity Share Capital |
246.000 |
|
(b)
Other Equity |
7102.668 |
|
Equity
to overseas of the company |
7348.668 |
|
|
|
|
2.
Non-current Liabilities |
|
|
(a) Financial Liabilities |
|
|
(i)
Borrowing |
3825.780 |
|
|
|
|
(b) Provisions |
2.261 |
|
(c) Deferred Tax Liabilities |
211.232 |
|
(d) Other Non-current
liabilities |
38.309 |
|
|
|
|
Total
Non-current Liabilities |
4077.582 |
|
|
|
|
2.Current
Liabilities |
|
|
(a) Financial Liabilities |
|
|
(i) Borrowing |
641.911 |
|
(ii) Trade payables |
88.260 |
|
(b) Other Current Liabilities |
109.243 |
|
(d) Provisions |
71.410 |
|
Total
Current Liabilities |
910.824 |
|
|
|
|
TOTAL
EQUITY AND LIABILITIES |
12337.073 |
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
Financial
Instruments : |
|
|
|
Letter of Credit |
46.500 |
25.120 |
|
Bank Guarantees : |
|
|
|
-Financial |
1.232 |
1.441 |
|
-Performance |
2.500 |
2.500 |
FIXED ASSETS
- Leasehold Land
- Buildings
- Plant and Machinery
- Furniture and Fixtures
- Vehicles
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 records 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 63.38 |
|
|
1 |
INR 86.02 |
|
Euro |
1 |
INR 76.50 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVT |
|
|
|
|
Analysis Done by
: |
PRY |
|
|
|
|
Report Prepared
by : |
SUJ |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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.