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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

500478

Report Date :

29.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

TATA CHEMICALS LIMITED

 

 

Registered Office :

Bombay House 24, Homi Modi Street, Fort, Mumbai – 400001, Maharashtra

Tel. No.:

91-22- 66658282 

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

23.01.1939

 

 

Com. Reg. No.:

11-002893

 

 

Capital Investment / Paid-up Capital :

INR 2548.163 Million

 

 

CIN No.:

[Company Identification No.]

L24239MH1939PLC002893

 

 

IEC No.:

[Import-Export Code No.]

0388159669

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACT4059M

 

 

GSTN :

[Goods & Service Tax Registration No.]

27AAACT4059M1ZZ

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged in diversified businesses dealing in Inorganic Chemicals, Fertilisers, Other Agri Inputs, Consumer and Nutritional solutions Business. (Registered Activity)

 

 

No. of Employees :

2931 (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++

Minimum Risk

Business dealings permissible with minimum risk of default

 

Status :

Excellent

 

 

Payment Behaviour :

Regular 

 

 

Litigation :

Exist

 

 

Comments :

TATA Chemicals Limited is an Indian global company with interests in chemicals, crop nutrition and consumer products headquartered in Mumbai, India. The company was incorporated in the year 1939 and is one of the largest chemical companies in India with significant operations in India and Africa. It is a part of TATA Group.

 

For the financial year 2017, the company reported dip in its revenue by 23.60% as compared to the previous year but has managed to maintain a fair profit margin of 10.70%.

 

The healthy financial risk profile of the company is marked by adequate net worth base along with robust liquidity and financial flexibility.

 

As per the quarterly financials of December 2017, the company achieved revenue of INR 9119.700 million along with a profit of INR 3663.900 million.

 

Rating also takes into account the strong financial and managerial support that company receives from its holding entity backed by its well experienced management team.

 

These strengths are partially offset by exposure to risks related to price volatility and cyclicality in the soda ash business, and the highly-regulated nature of the domestic fertiliser industry.

 

Payment seems to be regular.

 

In view of aforesaid, the company can be considered for business dealings at usual trade terms and conditions.


Note: In pursuance of the strategic directions set by the Board of Directors for the subject Company, the Board at its meeting held on 10 August, 2016 had approved the sale of urea and customised fertiliser business to Yara India, a subsidiary of Yara International ASA, Norwegian multinational fertiliser company subject to requisite regulatory and other approvals and sanction by the Hon’ble National Company Law Tribunal (NCLT). Accordingly, the subject Company had entered into an Agreement with Yara India on 10 August, 2016 for sale of urea and customised fertiliser business as a going concern, on a slump sale basis. The urea and customised fertiliser business along with the assets, liabilities, contracts, deeds etc. shall be transferred and vested with Yara India pursuant to the Scheme becoming effective on a slump sale basis in exchange of a lump sum consideration to be paid by Yara India to the Company, on the terms and conditions as agreed by the subject Company and Yara India. The transaction is to be implemented through a Scheme of Arrangement (‘Scheme’) under Sections 230 to 232 and other applicable provisions of the Act. Yara India will pay the lump sum consideration of INR 2,6700 million to the Company pursuant to the Scheme being approved subject to certain adjustments after closing, as agreed between the parties in terms of the definitive agreements and the Scheme. The Scheme was approved by the Equity Shareholders of the Subject Company by requisite majority at their Meeting held on 8 May, 2017. The subject Company Petition has been filed with the NCLT and the final order of the NCLT for approval of the Scheme is awaited.

 

 

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

CRISIL

Rating

Short Term Borrowing = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

31.10.2017

 

 

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 29.03.2018

 

 

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 BY

 

MANAGEMENT NON CO-OPERATIVE (Tel. No.: 91-22-66658282)

 

 

LOCATIONS

 

Registered/ Corporate Office :

Bombay House, 24, Homi Modi Street, Fort, Mumbai – 400001, Maharashtra, India

Tel. No.:

91-22-66658282

Fax No.:

91-22-66658143 / 44

E-Mail :

rchandan@tatachemicals.com

tatachem@giasbm01.vsnl.net.in

rajiv.chandan@tatachemicals.com

Website :

http://tatachemicals.com

http://www.tatachemicals.net

 

 

Marketing Office :

Leela Business Park Andheri-Kurla Road, Andheri (East), Mumbai - 400 059

Tel. No.:

91-22-66437400

Fax No.:

91-22-66437598 / 99

 

 

Regional and Satellite Offices:

Located at:

 

·         Noida

·         Kolkata

·         Chennai

·         Ahmedabad

·         Lucknow

·         Agra

·         Chandigarh

 

 

Research and Development Office :

Innovation Centre, Survey No. 315 Hissa No 1-14, Ambedveth (V), Paud Road, Mulshi, Pune – 412111, Maharashtra, India

Tel. No.:

91-20-66549700 

 

 

Crop nutrition and agri-business marketing office:

C-43, Sector 62, Noida – 201309, Uttar Pradesh, India

Tel. No.:

91-120-6663430

 

 

Factory 1:

Okhamandal, Mithapur - 361345, Gujarat, India

Tel. No.:

91-2892-665991/ 665992 

Fax No.:

91-2892-223361/ 665425

 

 

Factory 2:

Indira Dham, Babrala, District Bhimnagar - 202521, Uttar Pradesh

Tel. No.:

91-5836-664990/ 664777/ 664888 / 664999

Fax No.:

91-5836-664218

 

 

Factory 3:

PO Durgachak, Haldia, East Midnapore, District Purba - 721602, West Bengal, India

Tel. No.:

91-3224-251001

Fax No.:

91-3224-252220/ 252223

 

 

Factory 4:

317/2B, 317/2 C1, 317/2 C2, Vayalur Road, Kiloy Village, Sriperumbathur Taluk, District Kancheepuram – 602105, Tamilnadu, India

Tel. No.:

91-44-30104000

 

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Mr. Ramakrishnan Mukundan

Designation :

Managing Director

Address :

Flat No. 1301/1302, 13th Floor, Dosti Flamingoes-Snowflama, CT J Marg, Sewree, Mumbai-400033, Maharashtra, India

Date of Birth/Age :

19.09.1966

Qualification :

BE (Electrical Engineering) from IIT, Roorkee; MBA from FMS, Delhi University; Advanced Management Programme at Harvard Business School

Expertise in specific functional Areas :

Mr. Mukundan has wide experience in the field of strategy, operations and general management

Date of Appointment :

26.11.2008

DIN No.:

00778253

 

 

Name :

Mr. Nasser Mukhtar Munjee

Designation :

Director

Address :

Benedict Villa, House No. 471, Saud Vaddo, Chorao Island Tiswadi – 403102, Goa, India

Date of Appointment :

25.09.2006

DIN No.:

00010180

 

 

Name :

Mr. Yashwant Shankarrao Thorat

Designation :

Director

Address :

Indu Niketan, General Thorat Road, Tarabai Park, Kolhapur-416003, Maharashtra, India

Date of Appointment :

08.01.2010

DIN No.:

02652734

 

 

Name :

Ms. Vibha Paul Rishi

Designation :

Director

Address :

812, Aralias 12th Floor, Block-8, Golf Link, DLF City – V, Gurugram-122002, Haryana, India

Date of Appointment :

01.09.2014

DIN No.:

05180796

 

 

Name :

Mr. Bhaskar Bhat

Designation :

Additional Director

Address :

No. 884, Chaitanya Plot, Indiranagar, 1st Stage, Bangalore-560038, Karnataka, India

Date of Birth/Age :

29.08.1954

Qualification :

B Tech Degree in Mechanical Engineering from IIT, Madras; Post Graduate Diploma in Management from IIM, Ahmedabad

Expertise in specific functional Areas :

Mr. Bhat has extensive experience and expertise in sales and marketing. He is the Managing Director of Titan Company Limited since April 2002. At Titan, Mr. Bhat has dealt with Sales and Marketing, HR, international business and various general managerial assignments

Date of Appointment :

25.09.2006

DIN No.:

00148778

 

 

Name :

Mr. Padmanabhan Sankaranarayanan

Designation :

Director

Address :

132, Apsara, NCPA Apartments, D Tata Road, Nariman Point, Mumbai-400021, Maharashtra, India

Date of Appointment :

23.12.2016

DIN No.:

00306299

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajiv Chandan

Designation :

Company Secretary

Address :

Bombay House, 24 Homi Modi Street, Fort, Mumbai-400001, Maharashtra, India

Date of Appointment :

17.07.2007

PAN No.:

AAGPC4494G

 

 

Name :

Mr. John Mulhall

Designation :

Chief Financial Officer (Kmp)

Address :

Flat No. 601,602 and 603, DB Breeze, 16th Road, Khar West, Mumbai-400052, Maharashtra, India

Date of Appointment :

20.10.2015

PAN No.:

CTHPM0540D

 

 

SENIOR MANAGEMENT

 

Corporate :

·         R. Mukundan - Managing Director

·         Mr. John Mulhall- Chief Financial Officer

·         R. Nanda - Chief Human Resources Officer

·         Rajiv Chandan - General Counsel and Company Secretary

 

 

India Operations :

·         Dr. Arup Basu - President, New Businesses and Innovation Centre

·         Zarir Langrana - Chief Operating Officer, Chemicals (India)

·         Mr. D. K. Sundar- Chief Operating Officer, Fertilisers

·         Richa Arora - Chief Operating Officer, Consumer Products

 

 

International Operations :

·         Martin Keighley – Managing Director, Tata Chemicals North America

·         Dr. Martin Ashcroft – Managing Director, Tata Chemicals Europe

·         Jackson Mbui – Managing Director, Tata Chemicals Magadi

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2017

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

Promoter and Promoter Group

78472357

30.80

Public

176283921

69.20

Grand Total

254756278

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

Any Other (specify)

78472357

30.80

Tata Sons Limited

59786423

23.47

Tata Investment Corporation Limited

15200001

5.97

Tata Global Beverages Limited

705522

0.28

Ewart Investments Limited

1369290

0.54

Simto Investment Company Limited

518000

0.20

Sir Dorabji Tata Trust

259425

0.10

Voltas Limited

200440

0.08

Tata Coffee Limited

160000

0.06

Tata Industries Limited

77647

0.03

Tata Motors Limited

70249

0.03

Sir Ratan Tata Trust

68041

0.03

J R D Tata Trust

46699

0.02

Tata Motors Finance Limited

10060

0.00

Titan Company Limited

560

0.00

Sub Total A1

78472357

30.80

A2) Foreign

0.00

A=A1+A2

78472357

30.80

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

B1) Institutions

0

0.00

Mutual Funds/

62617648

24.58

Icici Prudential Mutual Fund

17658182

6.93

Hdfc Trustee Company Limited

11982055

4.70

Aditya Birla Sun Life Trustee Private Limited

6908191

2.71

Uti fund

3468234

1.36

L And T Mutual Fund Trustee Ltd

3168990

1.24

Idfc FUND

2963765

1.16

Mirae Asset Emerging Bluechip Fund

2743285

1.08

Templeton India Equity Income Fund

2631521

1.03

Foreign Portfolio Investors

29354952

11.52

Franklin Templeton Investment Funds

6031746

2.37

Government Pension Fund Global

2905682

1.14

Financial Institutions/ Banks

901612

0.35

Insurance Companies

16538491

6.49

General Insurance Corporation Of India

3580005

1.41

The New India Assurance Company Limited

3417850

1.34

Life Insurance Corporation Of India

2792305

1.10

Sub Total B1

109412703

42.95

B2) Central Government/ State Government(s)/ President of India

0

0.00

Central Government/ State Government(s)/ President of India

71871

0.03

Sub Total B2

71871

0.03

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200 Million

45359351

17.80

Individual share capital in excess of INR 0.200 Million

4185182

1.64

NBFCs registered with RBI

200051

0.08

Any Other (specify)

17054763

6.69

Clearing Members

870050

0.34

Icici Prudential Life Insurance Company Limited

10514184

4.13

Limited Liablity Partnership - LLP

175603

0.07

Trust And Charitable Institutions

1117397

0.44

Foreign Nationals-DR

30402

0.01

IEPF

1001576

0.39

Bodies Corporate

13859735

5.44

Sub Total B3

66799347

26.22

B=B1+B2+B3

176283921

69.20

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in diversified businesses dealing in Inorganic Chemicals, Fertilisers, Other Agri Inputs, Consumer and Nutritional solutions Business. (Registered Activity)

 

 

Products :

Item Code No.

Product Description

20123

Diammonium Phosphate (DAP)

20122

Soda Ash

08932

Vacuum and Iodised Salt

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

2931 (Approximately) 

 

 

Bankers :

Bank Name

HDFC Bank Limited

Branch

--

Person Name (With Designation)

--

Contact Number

--

Name of Account Holder

--

Account Number

--

Account Since (Date/Year of Account Opening)

--

Average Balance Maintained (If Possible)

--

Credit Facilities Enjoyed (If any)

--

Account Operation

--

Remarks (If any)

--

 

·         Standard Chartered Bank

·         Citi Bank N.A

·         State Bank of India

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Obligations under finance leases

189.900

421.400

 

 

 

Short-term borrowings

 

 

Cash/packing credit

28.100

34.100

Buyer's credit

0.000

1981.200

Suppliers’ credit

1100.000

0.000

Loan against subsidy receivable

859.600

0.000

 

 

 

Total

2177.600

2436.700

 

NOTE :

LONG-TERM BORROWINGS

Details of term loans and other borrowings as at 31 March, 2017 are stated below:

(i) Unsecured redeemable Non-convertible debentures having face value of INR 10 lakh each are redeemable at par on 2 July, 2019 and bears interest rate of 10% per annum.

(ii) The External Commercial Borrowings (ECB) are due for repayments on 22 October, 2018 INR 4103.100 Million (2016: INR 4192.000 Million and 2015: INR 3954.400 Million) (USD 63.27 million) and on 21 October, 2019 INR 4115.400 Million (2016: INR 4204.500 Million and 2015: INR 3966.500 Million) (USD 634.600 million) and bear interest of LIBOR plus spread of 1.95%, payable semiannually. Current portion due for repayment within one year is INR 4103.100 Million (USD 632.700 million) (2016: INR 3970.000 Million (USD 60 million) and 2015: INR NIL) and bears interest of LIBOR plus spread of 1.95% (2016: LIBOR plus spread of 1.65%), payable semiannually. other financial

(iii) The Company has entered into an agreement with the Department of Biotechnology (DBT) for a project on boosting crop health and yield. DBT has approved a loan of INR 1.500 Million (2016: INR 1.500 Million). The Company has received three installments of this loan aggregating to INR 1.100 Million (2016: INR 1.100 Million). The loan bears interest of 2% per annum repayable in 10 equal half yearly installments.

 

SHORT-TERM BORROWINGS

(i) Loans from banks on Cash Credit and Working Capital Demand Loan are secured by way of hypothecation of stocks of raw materials, finished products, stores and work-in-progress as well as book debts.

(ii) Buyer’s credit due for payment within 180 days bears interest of ‘LIBOR plus spread’ of 1.26% per annum (2016 : 0.87% per annum and 2015: 0.75 % per annum) secured against current assets.

(iii) Suppliers’ credit due for payment within 180 days bears interest of ‘LIBOR plus spread’ of 1.31% per annum (2016 : 0.81% per annum and 2015: 0.72 % per annum) secured against current assets.

(iv) During the year 2017, unsecured working capital demand loan of ` 50 crore was availed by the Company which would be repaid in May 2017. The loan bears interest of one month T-bill + 0.05% per annum..

(v) The Department of Fertilizers, Government of India, has notified ‘Special Banking Arrangement’ scheme to address the concern of delay in subsidy disbursement. This arrangement has been made by the Government with the State Bank of India Consortium (SBI Consortium). Loans under this scheme are secured by hypothecation of subsidy receivables.

 

Fixed interest rate of 8.00% per annum out of which 6.25% per annum shall be borne by the Government and repaid in April 2017. The remaining 1.75% per annum shall be borne by the Company and will be recovered upfront for 60 days from the company at the time of disbursement of the facility.

 

Auditors :

 

Name :

Deloitte Haskins and Sells LLP

Chartered Accountants

Address :

Indiabulls Finance Centre, Tower 3, 27th-32nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400013, Maharashtra, India

Tel. No.:

91-22-61854000

Fax No.:

91-22-61854501/4601

 

 

SOLICITORS

 

Name :
  • AZB and Partners
  • Mulla and Mulla and Craigie
  • Blunt and Caroe
  • Shardul Amarchand Mangaldas
  • Cyril Amarchand Mangaldas

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiaries Companies :

Direct

 

  • Rallis India Limited, India
  •  Bio Energy Venture -  (Mauritius) Pvt. Ltd, Mauritius

 

Indirect

 

  • Rallis Chemistry Exports Limited, India
  • Metahelix Life Sciences Limited, India
  • Zero Waste Agro Organics Limited (ZWAOL), India
  • PT Metahelix Lifesciences Indonesia (PTLI), Indonesia @
  • Valley Holdings Inc., United States of America
  • Tata Chemicals North America Inc., United States of America
  • General Chemical International Inc., United States of America
  • NHO Canada Holdings Inc., United States of America
  • Tata Chemicals (Soda Ash) Partners (TCSAP), United States of America **
  • Tata Chemicals (Soda Ash) Partners Holdings(TCSAPH), United States of America **
  • TCSAP LLC,United States of America
  • General Chemical Canada Holding Inc., Canada *
  • General Chemical (Great Britain) Limited, United Kingdom
  • Homefield Pvt UK Limited, United Kingdom
  • Homefield  UK Limited, United Kingdom
  • Tata Chemicals Africa Holdings Limited, United Kingdom
  • Tata Chemicals Europe Holdings Limited, United Kingdom
  • Tata Chemicals Europe Limited, United Kingdom
  • Winnington CHP Limited,United Kingdom
  • Brunner Mond Group Limited, United Kingdom
  • Brunner Mond Limited , United Kingdom
  • Tata Chemicals Magadi Limited, United Kingdom
  • Northwich Resource Management Limited, United Kingdom
  • Brunner Mond Generation Company Limited , United Kingdom
  • Gusiute Holdings (UK) Limited, United Kingdom
  • TCNA (UK) Limited, United Kingdom
  • British Salt Limited, United Kingdom
  • Cheshire Salt Holdings Limited, United Kingdom
  • Cheshire Salt Limited, United Kingdom
  • Brinefield Storage Limited, United Kingdom
  • Cheshire Cavity Storage  Limited, United Kingdom
  • Cheshire Compressor Limited, United Kingdom
  • Irish Feeds Limited,United Kingdom
  • New Cheshire Salt Works Limited, United Kingdom
  • Grown Energy Zambeze Holdings Pvt. Ltd, Mauritius #
  • Tata Chemicals International Pte. Limited, Singapore
  • Tata Chemicals (South Africa) Proprietary Limited, South Africa
  • Grown Energy (Pty) Limited, South Africa #
  • Magadi Railway Company Limited, Kenya
  • Grown Energy Zambeze Limitada, Mozambique #
  • Alcad, United States of America **

 

 

Joint Ventures Companies :

Director

  • Indo Maroc Phosphore S.A., Morocco

 

Indirect

  • The Block Salt Company Limited, United Kingdom (Holding by New Cheshire Salt Works Limited)
  • JOil (S) Pte. Ltd and its subsidiaries (Holding by Tata Chemicals International Pte. Limited)
  • 3 Natronx Technologies LLC, United States of America (Holding by TCSAP)

 

 

Associate :
  • Crystal Peak Minerals Inc. (upto 24th May, 2016) (formerly EPM Mining Ventures Inc.), Canada

 

 

Other related parties :
  • Tata Chemicals Ltd Provident Fund
  • Tata Chemicals Ltd Emp Pension Fund
  • Tata Chemicals Superannuation Fund
  • Tata Chemicals Employees Gratuity Trust
  • TCL Employees Gratuity Fund

 

 

Promoter Group :
  • Tata Sons Limited, India

 

 

List of subsidiaries and joint ventures of Tata Sons Limited@@ :
  • Advinus Therapeutics Limited
  • Indian Rotorcraft Limited
  • TATA AIG General Insurance Company Limited
  • Tata Autocomp Systems Limited
  • Tata Autocomp Hendrickson
  • Tata Capital Forex Limited
  • Tata Capital Financial Services Limited
  • TC Travel and Services Limited
  • Tata International Limited
  • Tata International Singapore Pte Limited
  • Tata Consultancy Services Limited
  • Tata Interactive Systems (Division of Tata Industries Limited)
  • Tata AIA Life Insurance Company Limited
  • Tata Business Support Services Limited
  • Tata Consulting Engineers Limited
  • Infiniti Retail Limited
  • TASEC Limited (formely TAS-AGT Systems Limited)
  • Tata Strategic Management Group (Division of Tata Industries Limited)
  • Tata Industries Limited
  • Tata Unistore Limited (formerly Tata Industrial Services Limited)
  • Tata Teleservices Limited
  • Ecofirst Services Limited
  • Tata Realty and Infrastructure Limited
  • Tata Investment Corporation Limited
  • Ewart Investments Limited
  • Simto Investment Company Limited
  • Tata International Limited

NOTE :

 

@@ The above list includes the Companies with whom Tata Chemicals Limited has entered into the transactions during the course of the year.

* General Chemical Canada Holding Inc. has been dissolved during the year ended 31 March, 2017.

 

** A general partnership formed under the laws of the State of Delaware (USA).

 

*** General Chemical (Great Britain) Limited has been dissolved during the year ended 31 March, 2016.

@ PT Metahelix Lifesciences Indonesia was incorporated in the year 2016-17.

# During the year ended 31 March, 2016, the Company’s wholly owned subsidiary Bio Energy Venture - 1 (Mauritius) Pvt. Ltd, had entered into an agreement for sale of its entire stake in Grown

Energy Zambeze Holdings Private Limited and its subsidiaries. The administrative approvals in the respective jurisdictions for effecting the proposed sale are awaited.

 

 

CAPITAL STRUCTURE

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

270000000

Ordinary shares

INR 10/- each

INR 2700.000 Million

 

 

 

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

254842598

Ordinary shares

INR 10/- each

INR 2548.426 Million

 

 

 

 

 

Subscribed & fully paidup Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

254756278

Ordinary shares

INR 10/- each

INR 2547.563 Million

 

Add : Forfeited Shares

 

INR 0.600 Million

 

Total

 

INR 2548.163 Million

 

 

The movement in number of shares and amount outstanding at the beginning and at the year end

 

Issued share capital

Number of

shares

INR In Million

Issued share capital:

 

 

Ordinary shares :

 

 

Balance as at 1 April

254842598

2548.426

Issued during the year

--

--

Balance as at 31 April

254842598

2548.426

 

 

 

Subscribed and paid-up:

 

 

Ordinary shares :

 

 

Balance as at 1 April

254756278

2547.628

Issued during the year

--

--

Balance as at 31 April

254756278

2547.628

 

 

Terms/ rights attached to equity shares

 

The Company has issued one class of ordinary shares at par value of INR 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the 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 accounts, in proportion to their shareholding.

 

 

Details of shares held by each shareholder holding more than 5 % of shares:

 

Issued share capital

Number of

shares

%

 

 

 

Ordinary shares with voting rights

 

 

Tata Sons Limited

49306423

19.35

ICICI Prudential Mutual fund

18053193

7.09

Tata Investment Corporation Limited

15553501

5.97

*Not holding more than 5% shares

 

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

2548.200

2548.200

2548.200

(b) Reserves & Surplus

86006.300

78314.300

57884.500

(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)

88554.500

80862.500

60432.700

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

10844.300

15405.600

17394.000

(b) Deferred tax liabilities (Net)

1385.500

1563.400

1912.300

(c) Other long term liabilities

122.000

109.100

16.700

(d) long-term provisions

1435.200

988.500

786.500

Total Non-current Liabilities (3)

13787.000

18066.600

20109.500

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

5225.000

15657.400

9764.600

(b) Trade payables

5117.300

6855.800

18583.600

(c) Other current liabilities

8368.700

8040.900

3732.300

(d) Short-term provisions

1828.400

1700.400

6167.100

(e) Assets classified as held for sale and discontinued

operation

5112.700

0.000

0.000

Total Current Liabilities (4)

25652.100

32254.500

38247.600

 

 

 

 

TOTAL

127993.600

131183.600

118789.800

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

14496.900

19067.000

18987.100

(ii) Intangible Assets

105.400

103.800

17.900

(iii) Capital work-in-progress

1217.700

1315.500

628.300

(iv) Intangible assets under development

0.600

0.600

8.900

(b) Non-current Investments

62480.600

58608.400

43638.500

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

11.000

23.500

4261.800

(e) Other Non-current assets

4971.400

4615.200

130.900

Total Non-Current Assets

83283.600

83734.000

67673.400

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

6115.300

10951.000

18090.300

(c) Trade receivables

10316.900

25539.700

24863.200

(d) Cash and cash equivalents

11120.800

6004.800

5743.000

(e) Short-term loans and advances

6.700

8.100

1688.700

(f) Other current assets

1824.100

4942.300

731.200

(g) Liabilities directly associated with discontinued

operation

15326.200

3.700

0.000

Total Current Assets

44710.000

47449.600

51116.400

 

 

 

 

TOTAL

127993.600

131183.600

118789.800

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

64709.200

84695.000

100836.000

 

Other Income

1769.200

1643.700

1947.500

 

TOTAL

66478.400

86338.700

102783.500

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

13940.100

20411.400

37785.500

 

Purchases of Stock-in-Trade

14568.200

22995.200

27125.400

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

2124.500

5913.400

(8508.400)

 

Excise duty on sale of goods

2424.800

2486.400

0.000

 

Employees benefits expense

3045.100

2862.700

3301.700

 

Other expenses

18762.800

20311.800

30743.500

 

TOTAL

54865.500

74980.900

90447.700

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

11612.900

11357.800

12335.800

 

 

 

 

 

Less

FINANCIAL EXPENSES

2148.500

2151.600

1867.800

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

9464.400

9206.200

10468.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

1524.100

1535.000

1927.100

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

7940.300

7671.200

8540.900

 

 

 

 

 

Less

TAX

2361.500

1751.300

2161.200

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

5578.800

5919.900

6379.700

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

Export of goods on F.O.B. basis

 NA

125.500

110.200

 

Miscellaneous Income

 NA

339.900

490.100

 

Dividend

 NA

192.500

439.700

 

TOTAL EARNINGS

 NA

657.900

1040.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

 NA

17443.400

21932.400

 

Traded products

 NA

13613.500

19051.000

 

Stores, components and spare parts

 NA

57.400

69.400

 

Capital Goods

 NA

182.200

90.800

 

TOTAL IMPORTS

 NA

31296.500

41143.600

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

27.19

26.15

25.04

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

 

 

 

From Banks - Secured

696.100

922.500

13635.400

From Banks - Unsecured

18997.300

4095.000

0.500

From Others - Secured

1.000

1.000

0.000

From Others - Unsecured

2.800

3.800

136.700

Total

19697.200

5022.300

13772.600

 

 

 

 

Cash generated from operations

27029.000

13865.200

6101.400

Net cash flow from operating activity

23934.100

11247.600

3609.800

 

 

QUARTERLY RESULTS

 

(INR in Million)

Particulars

30.06.2017

30.09.2017

31.12.2017

Audited / Unaudited

Unaudited

Unaudited

Unaudited

 

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

9841.400

15978.400

9119.700

Total Expenditure

8007.500

12648.200

6843.600

PBIDT (Excl OI)

1833.900

3330.200

2276.100

Other Income

608.100

406.100

158.000

Operating Profit

2442.000

3736.300

2434.100

Interest

320.600

373.200

248.800

Exceptional Items

NA

(527.300)

NA

PBDT

2121.400

2835.800

2185.300

Depreciation

380.500

363.100

310.400

Profit Before Tax

1740.900

2472.100

1874.900

Tax

519.000

909.200

346.900

Provisions and contingencies

NA

NA

NA

Profit After Tax

1221.900

1563.500

1528.000

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

1605.800

2105.000

3663.900

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

58.19

110.07

90.00

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

6.27

3.32

4.06

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

65.52

57.65

104.50

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

1.90

1.04

0.68

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.73

0.55

0.63

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.44

0.40

0.58

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.40

0.45

0.68

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.29

0.40

0.63

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.18

0.25

0.33

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

5.41

5.28

6.60

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

8.62

6.99

6.33

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

4.36

4.51

5.37

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

6.30

7.32

10.56

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.74

1.47

1.34

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

1.50

1.13

0.86

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.69

0.62

0.51

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

14.04

14.16

16.06

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.74

1.47

1.34

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 10.00/- each

Market Value

INR 682.95/- each

 

 

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

2548.200

2548.200

2548.200

Reserves & Surplus

57884.500

78314.300

86006.300

Net worth

60432.700

80862.500

88554.500

 

 

 

 

Long Term borrowings

17394.000

15405.600

10844.300

Short Term borrowings

9764.600

15657.400

5225.000

Current Maturities of Long term debt

13772.600

5022.300

19697.200

Total borrowings

40931.200

36085.300

35766.500

Debt/Equity ratio

0.677

0.446

0.404

 

 

 

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

100836.000

84695.000

64709.200

 

 

(16.007)

(23.597)

 

 

 

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

100836.000

84695.000

64709.200

Profit

6379.700

5919.900

5578.800

 

6.33%

6.99%

8.62%

 

 

 

ABRIDGED BALANCE SHEET – (CONSOLIDATED)

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

2548.200

2548.200

(b) Reserves & Surplus

 

76534.200

65995.000

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

(3) Non-controlling interests

 

26238.900

25984.600

Total Shareholders’ Funds (1) + (2)

 

105321.300

94527.800

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

43575.200

67797.000

(b) Deferred tax liabilities (Net)

 

12380.700

12437.900

(c) Other long term liabilities

 

917.500

1212.000

(d) long-term provisions

 

17828.500

17328.000

Total Non-current Liabilities (3)

 

74701.900

98774.900

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

7210.800

17879.200

(b) Trade payables

 

13379.400

16177.600

(c) Other current liabilities

 

27589.900

13363.400

(d) Short-term provisions

 

2734.800

2829.400

(e) Assets classified as held for sale and discontinued
operation

 

5112.700

0.000

Total Current Liabilities (4)

 

56027.600

50249.600

 

 

 

 

TOTAL

 

236050.800

243552.300

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

39171.300

44036.300

(ii) Intangible Assets

 

87117.400

90277.400

(iii) Capital work-in-progress

 

3047.600

3236.500

(iv) Intangible assets under development

 

302.200

264.600

(b) Non-current Investments

 

25701.600

21785.100

(c) Deferred tax assets (net)

 

236.700

89.600

(d)  Long-term Loan and Advances

 

11.000

23.500

(e) Other Non-current assets

 

6820.900

8052.200

Total Non-Current Assets

 

162408.700

167765.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

2205.200

94.000

(b) Inventories

 

13808.600

19319.100

(c) Trade receivables

 

20883.500

35655.700

(d) Cash and cash equivalents

 

16653.700

12653.600

(e) Short-term loans and advances

 

6.700

8.100

(f) Other current assets

 

4700.600

8029.200

(g) Liabilities directly associated with discontinued
operation

 

15383.800

27.400

Total Current Assets

 

73642.100

75787.100

 

 

 

 

TOTAL

 

236050.800

243552.300

 

 

PROFIT & LOSS ACCOUNT– (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

132889.200

152202.300

 

Other Income

 

1661.200

1252.600

 

TOTAL

 

134550.400

153454.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

22698.200

28676.900

 

Purchases of Stock-in-Trade

 

15900.500

25589.400

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

 

2846.100

5187.500

 

Excise duty on sale of goods

 

3471.500

3473.200

 

Employees benefits expense

 

12972.300

12712.000

 

Other expenses

 

52764.400

55646.000

 

TOTAL

 

110653.000

131285.000

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

23897.400

22169.900

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

4111.600

5254.700

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

19785.800

16915.200

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

5347.300

5260.800

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

14438.500

11654.400

 

 

 

 

 

Less

TAX

 

3573.300

2483.800

Add

SHARE OF PROFIT OF AN ASSOCIATE AND

JOINT VENTURES

 

127.500

148.900

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

10992.700

9319.500

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

38.98

30.25

 

 

LEGAL CASES

 

LITIGATION DETAILS

Bench:- Bombay

Presentation Date: 04.01.2018

Lodging No. :

ITXAL/79/2018

Failing Date:-

04.01.2018

Petitioner:-

PR COMMISSIONER OF INCOME TAX-CEN

Respondent:-

TATA CHEMICALS

Petn.Adv:-

SURESH KUMAR (I2100)

 

District:-

MUMBAI

Bench:-

DIVISION

Category :

TAX APPEALS

Status:-

Pre-Admission

Stage:-

 

Next  Date:-

11.01.2018

Coram:-

REGISTRAR (OS) / PROTHONOTARY AND SR. MASTER

Act. :

Income Tax Act, 1961

Under Section : 260A

 

 

 

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

 

Tata Chemicals Limited (the ‘Company’) is a public limited company domiciled in India. Its shares are listed on two stock exchanges in India, viz. the Bombay Stock Exchange (‘BSE’) and the National Stock Exchange (‘NSE’). The Company and its subsidiaries (collectively the ‘Group’) is engaged in diversified businesses dealing in inorganic chemicals, fertilisers, other agri inputs, consumer and nutritional solutions business. The Group has a global presence with key subsidiaries in United States of America (USA), United Kingdom (UK) and Kenya that are engaged in the manufacture and sale of soda ash, industrial salt and related products.

 

PERFORMANCE REVIEW

 

The Company has entered into an Agreement with Yara Fertilisers India Private Limited (‘Yara India’) to transfer its urea and customized fertiliser business at Babrala, Uttar Pradesh, by way of a slump sale, on a going concern basis, for a consideration of INR 2,670 Million (subject to certain adjustments) through a Scheme of Arrangement. Final approval on the Scheme of Arrangement from the Hon’ble National Company Law Tribunal is awaited. The effect of the transfer will be reflected in the financial results of the period in which the deal is consummated post receipt of all the requisite regulatory and statutory approvals. Hence, urea and customised fertilizer business is classified as discontinued operation in the financial statements for the year ended 31 March, 2017.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

BUSINESS ENVIRONMENT

Global Economic Outlook

 

Global economic environment remained challenging in 2016 although economic activity is expected to pick up in 2017 and 2018, especially in emerging markets and developing economies. International Monetary Fund (IMF) in its latest outlook has upped the world GDP growth projections from 3.1% in 2016 to 3.5% in 2017.

 

The real GDP growth in the United States dropped sharply to 1.6% in 2016 primarily on account of soft exports and declining investments. The growth 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. The anticipated shift in fiscal policy has buoyed financial markets and strengthened business confidence, which could strengthen the current momentum.

 

Real GDP growth in the Euro area declined to 1.7% in 2016 as exports and investments lost momentum. 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. Real GDP growth is expected to continue at 1.7% in 2017 and slow down marginally to 1.6% in 2018.

 

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 a 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-thanexpected net exports in 2016. The momentum of the improving exports, a fiscal stimulus package and Tokyo Olympics (scheduled in 2020) related spending is expected to lead to an improved growth of 1.2% in 2017. 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 2017 over 2016 is the expected pickup in Emerging Markets and Developing Economies (EMDE) growth. EMDE is expected to grow at 4.5% in 2017 compared to 4.1% in 2016.

 

Growth in China is expected to reduce to 6.6% in 2017 compared to 6.7% in 2016. This continues the gradual slowdown of economic growth for China as the economy is rebalancing from industry to services. Services 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 2016 despite concerns of sluggish activity due to widespread overcapacity. As overcapacity eased and prices of raw materials began to recover, producer price inflation, which has been negative since 2012 has also bottomed out. Accommodative monetary policy continues to fuel consumer spending and growth.

 

India’s GDP is expected to grow by 7.2% in FY 2017-18 compared to 7.1% in FY 2016-17. With this growth rate, India is likely to remain the fastest growing major economy in the world. Consumption is expected to receive a boost from two sources: catch-up after the demonetisation induced reduction in the last two quarters of FY 2016-17 and cheaper borrowing costs.

The three key transitions that are likely to continue influencing the global outlook are:

i. Policy uncertainty in advanced economies particularly the United States and the Euro Area. The impact of Brexit and negotiations between the UK and European Union (EU) is yet to be understood in totality.

 

ii. Possible eruption of trade tensions amongst the major countries, triggered by geo-politics, currency movements or climate of protectionist tendencies in recovering advanced economies.

 

iii. High corporate debt, declining profitability, weak bank balance sheets and vulnerability of large emerging market economies to external shocks.

 

 

COMPANY OVERVIEW AND SUSTAINABLE PROFITABLE GROWTH STRATEGY

 

Tata Chemicals Limited (‘the Company’ or ‘TCL’) is a global company with interests in businesses that focus on essentials for LIFE: Living, Industry and Farm Essentials. The story of the Company is about harnessing the fruits of science for goals that go beyond business.

 

Tata Chemicals started its journey in Mithapur, Gujarat in 1939 with a small plant that would raise a wealth of marine chemicals from the ocean. From these humble beginnings, Tata Chemicals has evolved into a market-leading international business, with operations across four continents and businesses that touch the lives of millions across the globe. The Company is the world’s second largest producer of soda ash, reaches over 143 million households through its Tata Salt brand and touches 85% of India’s arable land through its agri business, together with its subsidiaries Rallis India Limited (Rallis) and Metahelix Life Sciences Limited (Metahelix). TCL’s Innovation Centre in Pune, today, is home to world-class R&D capabilities in nanotechnology and biotechnology.

 

Sustainability as a practice is at the core of all of Tata Chemicals’ activities, including TCL’s social responsibility initiatives, and is intricately woven into all of the Company’s business functions.

 

The Company continues to transform itself from a commodity and an inorganic chemicals manufacturer towards providing wellness solutions, with a focus on consumer, agri and specialty businesses while further strengthening its core. TCL is making significant progress in its transformation journey of LEAP – Lead, Engage, Aspire and Perform by focusing on building brands through greater customer centricity and technology led differentiation.

 

The Company, in each of the businesses, is addressing requisite capability building to meet the critical success factors based on long term value creation.

 

In the inorganic chemicals business, global pricing volatility persisted throughout the year under review due to fluctuations in demand, shipping and energy costs, exchange rates and other geopolitical considerations. The UK business showed significant improvement and will continue to focus on sustaining the same. Overall inorganic chemicals business will focus on maintaining cost leadership and scale through operational excellence.

 

Tata Salt was voted in the top 10 of India’s most trusted brands (source: ET Brand Equity India’s Most Trusted Brands 2016) and the Company launched new products such as Rock salt crushers under the salt portfolio.

 

The consumer products portfolio witnessed strong growth through relentless focus on customer centricity and brand. Under the Tata Sampann umbrella brand, the Company launched new products like ‘Low Oil Absorb’ besan which provide differentiation through scientific innovation. Looking ahead, the business will further improve the reach of salt and build scale for pulses, besan and spices, with focus on value added products. The business

aims to delight consumers by offering wholesome everyday nourishing foods.

 

During the year, the Company has entered into an agreement with Yara Fertilisers India Private Limited for the sale of the urea and customised fertiliser business, on a slump sale basis, subject to regulatory and statutory approvals. The agri business will continue its efforts to make its Haldia unit profitable and further build the specialty agro chemicals and seeds portfolio through its subsidiaries, Rallis and Metahelix. Anticipating a normal monsoon in the year ahead, the Company plans to leverage its strong farmer connect and digitisation initiatives to provide enhanced solutions to improve productivity and profitability of farmers.

 

The Innovation Centre in Pune will continue supporting the diverse needs of TCL’s businesses along with synergistic programs with the Tata Group companies. The Nutritional Solutions unit, operating as a start-up, will focus on building scale in specialty businesses. An MoU was signed with the Government of Andhra Pradesh to invest INR 2500.000 Million for a greenfield biotechnology manufacturing unit for food ingredients and formulations developed at TCL’s innovation centre. During the year, the IC developed a highly dispersible silica formulation suitable for tyre applications and the Company is planning to manufacture precipitated highly dispersible silica in Gujarat.

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTH ENDED 31ST DECEMBER, 2017

 

(INR in Million)

 

 

Particulars

31.12.2017

(Quarter Ended)

30.09.2017

(Quarter Ended)

31.12.2017

(Nine Months Ended)

1

 

Sales/Income from Operations (Gross)

9119.700

8261.500

26059.200

2

 

b) Other Operating Income

158.000

469.400

1235.500

3

Total Income from Operations (Net)

9277.700

8730.900

27294.700

 

 

 

 

 

4

Expenses              

 

 

 

 

a)

Cost of Materials consumed

1484.600

1105.100

3834.100

 

b)

Purchase of Stock-in-trade

501.400

635.100

1662.400

 

c)

Changes in inventories of finished goods, work-in-progress and stock-in-trade

129.300

104.900

95.400

 

d)

Excise duty on sale of goods

0.000

0.000

581.600

 

e)

Employee benefit expenses

615.800

655.100

1920.600

 

f)

Power and Fuel

1175.600

1150.500

3481.200

 

g)

Freight and forwarding charges

1006.700

868.800

2903.000

 

h)

Finance Costs

248.800

210.700

619.500

 

i)

Depreciation and amortization expense

310.400

309.100

946.200

 

j)

Other expenses

1930.200

1452.100

4929.000

 

Total Expenses

7402.800

6491.400

20973.00

 

 

 

 

 

5

Profit before Tax

1874.900

2239.500

6321.700

6

Tax Expense

346.900

828.100

1829.000

7

Profit from continuing operations after tax

1528.000

1411.400

4492.700

8

Profit from discontinued operations

2857.300

1043.300

4003.800

9

Tax expense of discontinued operations

721.400

349.700

1121.800

10

Profit from discontinued after tax

2135.900

693.600

2882.000

11

Profit for the period

3663.900

2105.000

7374.700

12

Other Comprehensive Income

 

 

 

 

Items that will not be classified of profit or loss

4133.200

3576.200

8759.200

13

Total Comprehensive Income

7797.100

5681.200

16133.900

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

6.00

5.54

17.64

 

 

 

STATEMENT OF ASSETS AND LIABILITIES

 

(INR in Million)

Particulars

31.12.2017

(Quarter Ended)

30.09.2017

(Quarter Ended)

31.12.2017

(Nine Months Ended)

 

 

 

 

1

SEGMENT REVENUE

 

 

 

 

Inorganic Chemicals

8598.100

7875.900

25027.900

 

Other

417.400

383.800

1021.800

 

 

9015.500

8259.700

26049.700

 

Add: Unallocated

4.200

1.800

9.500

 

Total Income from Operations

9119.700

8261.500

26059.200

 

 

 

 

 

2.

SEGMENT RESULT

 

 

 

 

Inorganic Chemicals

2603.400

2357.500

7280.300

 

Other

(117.600)

(86.000)

(319.500)

 

Total segment results

2485.800

2271.500

6960.800

 

Less:

 

 

 

 

Finance Costs

2488.800

210.700

619.500

 

Net Unallocated Expenditure/ (Income)

362.100

(178.700)

19.600

 

Total Profit Before

1874.900

2239.500

6321.700

 

 

 

 

 

3.

SEGMENT ASSETS

 

 

 

 

Inorganic Chemicals

18827.700

19473.000

18827.700

 

Other

1667.700

1526.400

1667.700

 

Total segment assets

20495.400

20999.400

20495.400

 

Add: Unallocated

80665.300

78353.400

80665.300

 

Total assets

101160.700

99352.800

101160.700

 

 

 

 

 

4

SEGMENT LIABILITIES

 

 

 

 

Inorganic Chemicals

6326.300

5827.300

6326.300

 

Other

439.100

427.400

439.100

 

Total segment liabilities

6765.400

6254.700

6765.400

 

Add: Unallocated

15470.900

20646.700

15470.900

 

Total liabilities

22236.300

26901.400

22236.300

Note: The Segment information stated above does not include the following relating to discontinued operation

Particulars

Quarter Ended

Nine months Ended

 

 

31.12.2017

30.09.2017

31.12.2017

 

Segment Revenue

15918.100

13853.400

36472.200

 

Segment Results

2857.300

1043.300

4003.800

 

Segment Assets

28619.400

27935.100

28619.400

 

Segment Liabilities

6153.500

6793.400

6153.500

 

NOTE :

 

1. The above results were reviewed by the Audit Committee on 5 February, 2018 and approved by the Board of Directors at its meeting held on 6 February, 2018. The same have been reviewed by the Statutory Auditors who have issued an unqualified conclusion thereon.

 

2. Financial results for all the periods presented have been prepared in accordance with the recognition and measurement principles of Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015.

 

3 a. The Group entered into a Business Transfer Agreement on 6 November, 2017, with IRC Agrochemicals Private Limited ("IRC"), a wholly owned subsidiary of Indorama Holdings BV, Netherlands to transfer its Phosphatic Fertiliser Business located at Haldia and the trading business comprising bulk and non-bulk fertilisers, by way of a slump sale for a consideration of ? 375 crore (subject to certain adjustments). Consequently, profit from discontinued operations for the nine months ended 31 December, 2017 includes a charge of 7 52.73 crore representing the shortfall between the carrying value of net Property, Plant and Equipment ("PPE") and the recoverable value. The effect of the transfer will be reflected in the financial information of the period in which the deal is consummated post receipt of all the requisite regulatory approvals.

 

b. Subsequent to the nine months period ended 31 December, 2017, the Group has, on 12 January, 2018, consummated the sale and transfer of Urea and Customised Fertilisers Business to Yara Fertilisers India Private Limited as contemplated in the Scheme of Arrangement dated 10 August, 2016. The effects of this sale will be recorded in the results for the period ending 31 March, 2018.

 

4. According to the requirement of Ind AS and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, revenue for the corresponding previous quarter and nine months ended 31 December, 2016 and year ended 31 March, 2017 were and are reported inclusive of Excise Duty.

 

The Government of India implemented Goods and Service Tax ('GST') from 1 July, 2017 replacing Excise duty, Service Tax and various other indirect taxes. As per Ind AS 18 - Revenue, the revenue for the quarter ended 30 September, 2017, quarter and nine months ended 31 December, 2017 are reported net of GST. Had the previously reported revenues been shown net of excise duty, comparative revenues of the Group would have been as follows:

 

Particulars

Quarter Ended

Nine months Ended

 

31.12.2017

30.09.2017

31.12.2017

Revenue from operations (net)

9119.700

8261.500

25477.600


7. Previous period figures have been regrouped to conform with the classification adopted in these financial results.

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Non convertible debentures

2500.000

2500.000

Term loans - bank

8154.400

12483.600

Other loans

0.000

0.600

 

 

 

Short-term borrowings

 

 

Buyer's credit

0.000

10962.000

Working capital demand loan

500.000

0.000

Suppliers’ credit

2737.300

2680.100

 

 

 

Total

13891.700

28626.300

 

 

INDEX OF CHARGES:

 

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Date of Satisfaction

Amount

Address

1

A01583483

10006975

HDFC BANK LIMITED

25/05/2006

-

-

600000000.0

2

A01569474

10007993

STANDARD CHARTERED BANK

25/05/2006

-

-

400000000.0

90, MAHATMA GANDHI ROAD,FORT,MUMBAIMH400001IN

3

A01570696

10007999

CITI BANK N.A

25/05/2006

-

-

750000000.0

293 D N ROADFORTMUMBAIMH400001IN

4

A01570167

10006694

STATE BANK OF INDIA

25/05/2006

-

-

3150000000.0

VOLTAS HOUSE, 23, J.N. HEREDIA MARG,BALLARD ESTATEMUMBAIMH400001IN

5

A01568773

10006692

ICICI BANK LTD.

25/05/2006

-

-

500000000.0

FREE PRESS HOUSE,215, NARIMAN POINT,MUMBAIMH400021IN

6

A01569151

10006693

BANK OF AMERICA

25/05/2006

-

-

500000000.0

EXPRESS TOWERS,NARIMAN POINT,MUMBAIMH400021IN

7

A01569813

10008799

THE HONGKONG & SHANGHAI BANKING CORPORATION LTD.

25/05/2006

-

-

500000000.0

52/60, MAHATMA GANDHI ROAD,MUMBAIMH400001IN

8

A01571082

10016030

BANK OF BARODA

25/05/2006

-

-

1250000000.0

CORPORATE FINANCE BRANCHMUMBAIMH400001IN

9

Y10335064

90232273

CENTRAL BANK OF INDIA

16/03/2004

-

-

10000000.0

66 FLOOR ;M.G. ROADPARELMUMBAIUPIN

10

Y10334977

90232186

BANK OF BARODA

18/04/2001

-

-

1000000000.0

BOMBAY SAMACHAR MARGMUMBAIMHIN

 

 

CONTINGENT LIABILITIES:

 

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Claims not acknowledged by the Company relating to cases contested by the Company and which, in the opinion of the Management, are not likely to devolve on the Company relating to the following areas:

 

 

Excise, Customs and Service Tax

277.000

218.000

Sales Tax

369.300

9540.000

Demand for utility charges

110.200

110.200

Labour and other claims against the Company not acknowledged as debt

220.500

123.200

Income Tax (pending before Appellate authorities in respect of which the

Company is in appeal)

2745.300

2065.900

Income Tax (decided in Company's favor by Appellate authorities and

Department is in further appeal)

471.500

471.500

Total

4193.800

12528.800

The above contingent liability include INR 7.800 Million (2016 : INR 9.000 Million and 2015: Million 17.500 Million) relating to assets held for discontinued operation.

 

 

FIXED ASSETS

 

·         Land

·         Buildings

·         Plant and Machinery

·         Furniture and Fittings and Office Equipment

·         Vehicles

·         Saltworks, Reservoirs and Pans

·         Traction Lines, Railway Sidings and Wagons

·         Mines and Quarries

 

 

 

PRESS RELEASE

 

TATA CHEMICALS TO MERGE MAURITIUS-BASED FIRM WITH ITSELF

March 23, 2017

 

Tata Chemicals today received board's approval to merge its Mauritius-based wholly owned subsidiary firm Bio Energy Venture with itself.

 

The merger is aimed at rationalising foreign subsidiaries to ensure optimised legal entity structure and eliminate multiple record-keeping, thus reducing expenditure considerably, the company said in a regulatory filing.

 

There is no cash consideration involved. After the merger, Tata Chemicals shares in Bio Energy Venture will stand cancelled, it said.

 

There will not be any change in shareholders and the shareholding pattern of the parent listed company, it added.

 

The net worth of Bio Energy Venture was INR 33470.000 Million as on March 31, 2017, while that of Tata Chemicals stood at INR 70467.000 Million in the same period.

 

 

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 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 64.80

UK Pound

1

INR 92.26

Euro

1

INR 80.76

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

PRY

 

 

Report Prepared by :

KJL

 

 

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)

 

 

 

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.