MANAGEMENT DISCUSSION AND ANALYSIS
The global economic growth has slowed from 3.9% in 2011 to 3% in 2013 with the US justrecovering from the slump, the European Union (EU) still in nascent stages of recovery andChina slowing from its previous record high growth rates. The factors that have affectedthe global economy have also impacted India and the government has taken multiple fiscaland monetary measures to navigate through this tumultuous period and position the economyfor future growth.
As a result of the measures, the fiscal deficit has been contained to 4.6% of GrossDomestic Product (GDP), the Current Account Deficit (CAD) has been reduced from USD 88billion in 2012-13 to USD 45 billion in 2013-14 and the forex reserves have grown by USD15 billion in 2013-14.
The overall business climate in India is improving with slowing inflation, goodmonsoons and easing economic pressures from the twin deficits. Indias currentaccount deficit has narrowed due to a compression in the trade deficit enabled by higherexport growth and measures taken to curtail gold and other non-essential imports.Complementing the measures to contain the CAD, policy makers have undertaken a host ofmeasures to augment capital flows to target a Balance of Payment (BoP) surplus.
A stable and growing economic environment is much needed to support the growingaspirations of 1.2 billion people. The pro-reform sentiment is strongly in place and thenewly elected Government has highlighted economic development as one of its main focus.With a large proportion of population under the age of 30, this pro-economic Developmentstance by the Government will create an appropriate climate for businesses to invest whichin turn will support job creation and long-term growth. While the industrial sector willcreate additional employment opportunities, the domestic agricultural sector will continueto remain the largest employer in the near term accounting for close to 50% of employment.Institutional forecasts are for a gradual recovery in 2014-15 with GDP growth of 5-6%while managing inflationary pressures.
Industrialization and the growth in services sector will continue to be the catalystbehind urbanization & income growth which will have a significant impact onpeoples consumption pattern. The higher income levels and an urban population basewill influence dietary mix more towards high protein diets, fruits and vegetables. Thisshift will further stress todays arable land and productivity levels will need toincrease to support the increased demand for high quality and high protein food.
Current agricultural productivity in India, both on a per hectare basis and on a perperson basis is low compared to global benchmarks and will need to significantly improveto meet the ever increading demand for food.
Another factor that strongly influences the productivity levels is the imbalanced useof N, P and K fertilisers resulting from highly subsidized Urea. The artificially low Ureaprices that are a result of this skewed policy promotes higher application of Urearelative to P&K fertilisers which not only influences the usage but also increases theoverall subsidy burden on the Government.
The Nutrient Based Subsidy (NBS) policy for P&K fertilisers has had the intendedeffect of increasing the availability of complexes in the marketplace and also reducingthe overall subsidy burden borne by the Government. The extension of the same policy toUrea will bring all nutrients under one subsidy policy and provide the market with acommon framework. The benefits realized by the P&K sector with the introduction of NBSwill become visible in the Urea sector as well.
The food grain production estimate for 2013-14 is over 263 million tons as comparedwith 255 million tons the previous year and this increase has been possible due to thevery good south west monsoons in the year. The overall agricultural GDP growth isestimated at 4.6% as compared with 4% in the previous year.
Better farming practices, mechanization, balanced soil nutrition including addressingmicro-nutrient deficiencies and subsidy recalibration are all required to catapult theagricultural sector to the next level and bring it on par with global benchmarks. Theindustry believes that the Government will embrace and implement the policies required toachieve this goal.
Coromandel is a flagship Company of the Murugappa Group and is a subsidiary of EIDParry (India) Limited (EIDP) which holds 62.56% of the equity share capital in theCompany. The Company is engaged in the business of Farm Inputs comprising of Fertilisers,Crop protection, Specialty Nutrients and Organic compost. The Company is also engaged inrural retail business in the States of Andhra Pradesh and Karnataka through a chain of690+ retail centers set up in various parts of these States. The Company has 14manufacturing facilities located in Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra,Madhya Pradesh, Uttar Pradesh, Rajasthan, Gujarat and Jammu & Kashmir including the 7locations for SSP production acquired as part of the Liberty acquisition. TheCompanys products are marketed all over the Country through an extensive network ofdealers and its own retail centers.
During the year the erstwhile subsidiaries Liberty Phosphate Limited (LPL) and LibertyUrvarak Limited (LUL) have been merged with the Company pursuant to the Orders of the HighCourts of Andhra Pradesh and Gujarat.
The Company has following subsidiaries and joint ventures for its various businessinitiatives :
Sabero Organics Gujarat Limited, India
Sabero Organics America Ltda, Brazil
Sabero Australia Pty Ltd, Australia
Sabero Europe BV, Europe
Sabero Argentina S.A., Argentina
Sabero Organics Mexico S.A. de C.V., Mexico
Parry Chemicals Limited
Dare Investments Limited
CFLMauritius Limited, Mauritius
Coromandel Brasil Ltda, Brazil
Coromandel Getax Phosphates Pte Ltd, Singapore
Coromandel SQM (India) Pvt Ltd
In addition, the Company also holds 14% equity stake in Foskor Pty Ltd, South Africa,through combined holding of Coromandel and CFLMauritius Limited and a 15% equity stake inTIFERT, a strategic investment of the Company to secure supply of Phosphoric acid.
The Management Discussion and Analysis given below discusses the key issues concerningeach of the Strategic Business Units (SBUs).
Coromandel, with a production capacity of 36.25 Lakh tons of Di-Ammonium Phosphate(DAP) and Complexes, is the leading private sector player in Phosphatic fertilisers inIndia. The Company produces and sells Phosphatic (P) and Potassic (K) Fertilisers ofvarious grades like DAP and Complex Fertilisers with different composition ofnutrients. The Company also distributes imported DAP, Potash, Urea and NPKs. Theacquisition of LPL and LUL has added a further 10 lakh tons of Single Super Phosphate(SSP) capacity. This also allows the Company to offer low P fertiliser products to thefarming community in the core SSP markets Gujarat, Rajasthan, Madhya Pradesh andUttar Pradesh.
The Company has a complete basket of products to offer the farmers including Urea whichis handled under government contract through Kakinada and Karaikal ports and therebyoperates in all fertiliser segments Nitrogenous, Phosphatic and Potassicfertilisers. The Companys fertiliser (DAP and complex) manufacturing facilities arelocated at Visakhapatnam and Kakinada in Andhra Pradesh and Ennore in Tamil Nadu.Coromandel has facilities to manufacture phosphoric acid and sulfuric acid atVishakapatnam and Ennore.
The Company also operates 7 SSP plants in the northern and western parts of India and 1in Ranipet.
Global market scenario
The global consumption of nutrients in 2013 is estimated to be 179 million tons , a0.5% increase over previous year, and is estimated to grow to 194 million tons in 2017.
India Market Scenario
The 2013-14 monsoon was one of the best monsoons in recent history and thissignificantly improved the agricultural prospects for both kharif and rabi seasons.Commodity prices ruled high despite record production level of 260 MM tons estimated forthe year 2013-14, indicating rising demand for agricultural products. The fertilisersector has seen the revival of phosphatics consumption.
The overall industry DAP consumption levels have revived in 2013-14 due to goodmonsoon. The import volumes declined in 2013-14 to 33 lakh tons in response to the highpipeline inventory situation while the domestic production levels have remained flat at 36lakh tons.
The total sale of Complex fertilisers in India has remained relatively constant at2012-13 levels and was 71 lakh tons in 2013-14. The industrys production volumeshave increased from 62 lakh tons in 2012-13 to 69 lakh tons in 2013-14 while imports havebeen almost negligible at 4 lakh tons.
This lowering of imports resulting from demand contraction and a good monsoon in2013-14 have allowed the industry to reduce pipeline stocks that had been built up duringthe year 2011-12.
The various expansions projects announced by domestic manufacturers to meet futuredemand is likely to increase the availability of complex fertilisers from domesticproduction as we go forward.
The prices of all phosphatic fertilisers and raw materials have been relatively stablein 2013-14 as compared with the volatility and steep increases seen in 2012-13. Inaddition, the stability of the rupee in 2013-14 has also helped in maintaining phosphaticfertiliser prices.
MOP consumption has declined by 44% over 2010-11 levels to 22 lakh tons in 2013-14 andimports have declined by 50% over the same period to 32 lakh tons.
The fertiliser subsidy continues to be N-biased resulting in artificially low Ureaprices which continues to influence the farmers buying behavior and leading to highUrea application levels relative to phosphatic fertiliser application levels. This hasresulted in suboptimal application levels and may lead to deterioration in soil health.
In line with international price trends, the government has announced phosphaticsubsidy rates for FY 2014-15.
| ||Rs./Kg of Nutrient |
|Year ||N ||P ||K ||S |
|2011-12 ||27.153 ||32.339 ||26.756 ||1.677 |
|2012-13 ||24.000 ||21.804 ||24.000 ||1.677 |
|2013-14 ||20.875 ||18.679 ||18.833 ||1.677 |
|2014-15 ||20.875 ||18.679 ||15.500 ||1.677 |
With the decrease in the subsidy rate, the share of subsidy in total realization hasreduced and this in turn has helped the Government to curtail the subsidy outgo towardsphosphatic fertilisers. The NBS policy has achieved its intended benefits of increasingthe availability of phosphatic fertilisers, reducing subsidy outgo and prices reflectingmarket rates.
The Company has made significant advances in consolidating its position as the premierphosphatics player in the core markets by leveraging its strong trade & retailnetworks and by expanding the institutional channel. With the 2013-14 monsoon being a veryfavorable one, the Company has increased its all-India PK fertiliser market-share to over16% in 2013-14 (13% in 2012-13).
In the year 2013-14, the fertiliser business has deployed a series of counter measuresto mitigate the effects of the adverse business conditions that were prevalent in 2012-13and has positioned the business for long-term growth. Leveraging the good monsoons,favorable ground water conditions and reviving consumption, the fertiliser business hasmethodically worked through the channel inventory woes and in doing so has strengthenedits position as a key player in its key addressable markets of Andhra Pradesh, Karnatakaand Maharashtra.
The business has improved its overall brand equity by improving the quality of itsfinished products and bags through focused initiatives. The manufacturing locationsmaintained tight controls on conversion costs and fixed costs to maximize profitability.In addition, the business optimized availability of raw material while managingshort-falls in supply of phosphoric acid to ensure improved capacity utilizations whichhave also contributed to improved profitability levels.
The business was constrained by relatively high levels of working capital and variousincentive schemes were introduced throughout the year to continuously focus on containingthe working capital levels. Borrowings have also been effectively managed to minimizeinterest costs.
The total production of DAP and Complexes in 2013-14 from Coromandels productionfacilities was 22.55 lakh tons. The new production facility (C-Train) at Kakinada wasstabilised during the year. All fertiliser plants have reported improved operationalefficiencies and improved substantially in both safety and environmental standards. Thetimely purchase of raw materials and pro-active forex management also helped the Companyto improve overall performance.
Various initiatives were taken to improve the quality of the product and packaging thusassuring best product to customers.
Coromandel in its continuous journey towards improving the SHE practices has achievedthe best ever norms in-terms of Safety and Environmental performance for the year2013-14. The Company has invested and improved the structural integrity at itsVishakapatnam and Ennore plants and will continue to undertake investments in furtherimproving the SHE culture at its Plants.
The Company has been investing continuously in meeting its obligations towardsprotecting the environment. Towards this step, the Green Visakha project and Green beltdevelopment at Kakinada continued as planned. With the assistance of TERI, the Vizag teamdeveloped some unique species of trees which can flourish in acidic and alkaline soils.The same were successfully planted in an area of 5 acre.
Introduction of fortified fertilisers was a key area of focus in 2013-14 and a new NPgrade 24-24-0 fortified with 8% sulphur was produced commercially at Vizag plant usingShell technology. DAP fortified with zinc was produced commercially in Kakinada plant andsingle super phosphate fortified with Boron was produced in Ranipet plant. These fortifiedgrades will help ameliorate the deficiencies of sulphur, zinc and boron in Indian soilsand are an addition to the range of unique products offered by the Company therebyenhancing value addition to the customers.
Overall, the fertiliser business of the company had a good year and maintained focus onworking through inventory overhang, working capital and increasing production throughC-Train.
Crop protection industry globally registered a growth of 9.4 %, to grow from 49.5billion dollars in 2012 to 54.2 billion dollars in 2013. Some of the key factors witnessedin 2013 were strong volume growth in all regional markets and improvement in glyphosateprices. The global weather conditions witnessed during the year were very locationsspecific with US corn and soybean planting season affected by dry weather but had a goodgrowing season while the European regions were affected by excess rainfall. As a result,the crop prices which were relatively high at the beginning of the year moderated over thecourse of the year.
Among the various regions, Latin America contributed largely to this growth with 22.3%growth to reach a turnover of 14.02 billion dollars and insecticide grew strongly as asegment. Asian market was the only region to register a marginal negative growth of 1.8%and with a turnover of 14.4 billion dollars (however in real terms the market grew by3.6%)
Market acceptance and usage of Genetically Modified (GM) crops are becoming an integralpart of the crop protection business. GM seeds market registered a growth of 8.7% to reach20 billion dollars. America and Asia are the key regions witnessing this growth.
Indian Industry benefitted from both growth in volumes and increase in prices thoughexcess rains affected consumption in some states. Herbicides and Fungicides recorded goodgrowth in consumption.
Crop Protection Performance
During the year 2013-14 SBU recorded strong growth over previous years by leveragingits domestic distribution network, scaling up technicals and its direct presence in keyLatin America (LATAM) and Asia Pacific (APAC) markets. In its effort to expand its exportpresence, the SBU has initiated a regional focus approach for its export markets.
Domestic formulations business recorded robust growth through trade and retail chain inall critical markets. To create a new identity and engage farmers in a responsible manner,SBU launched a new umbrella brand "Gromor Suraksha" offering strong valueproposition to farmers.
Formulations business could offer a strong portfolio of products in the domestic marketthrough its captive fungicides technical range and introduction of new molecules throughits co-marketing tie-up with MultiNational Corporations to strengthen its herbicidesrange.
During the year the Company and its subsidiary Sabero achieved various othermilestones:
Manufacturing capacity of key molecules enhanced with improved efficiencies
Consistency in product quality established manufacturing Propineb. The productgained good acceptance globally
Plant reliability and safety improved with reconstruction of certain plants inSarigam to ensure higher capacity and volumes in the coming years
Leveraged existing portfolio of product registrations to scale up volumes acrossgeographies
Increased volumes and presence in Central America through subsidiary in Mexico
Through its increased reach and strong portfolio of products, SBU is set to captureemerging growth in consumption of agro chemicals, in the drive to increase agriculturalproduction in the country.
Specialty Nutrients Division (SND) team was restructured across the country to bringfocus and growth to the business. It was reoriented around Crop based units with theobjective of providing complete nutrition solutions and enhancing the productivity. Thecrop approach has yielded rich dividends in its first year of operations through improvedawareness about total nutrition concept among the farmers and dealers, resulting in highersales, liquidation and consequent collections. The business has grown by 18% registeringhealthy growth in all three product categories- Water Soluble Fertilisers (WSF), SulphurProducts and Micro Nutrients. Coromandel emerged as market leader in Water SolubleFertilisers and Sulphur product segments. During the year, six new products wereintroduced to offer need based crop solutions.
The joint venture with SQM Chile, Coromandel SQM (CSQM), which has been helpingCoromandel through knowledge sharing and new product introduction, has grown in itsoperations significantly during the year. Business aims to build on SQMs soundtechnical crop knowledge to continue its market leadership in WSFs.
Retail showed robust performance in 2013-14 registering an impressive 55% growth in thenon-fertiliser segment. A number of new initiatives and processes were introduced thisyear to facilitate long term growth and stores were positioned as a "Complete FarmingSolution" platform through range expansion in Non-Fertilisers.
Visual merchandizing was introduced in retail centers to improve store presentation andfocus on providing the customer a consistent, high quality presentation of the productofferings. The business leveraged technology to provide cutting edge services throughinitiatives like Gromor Webinar and Gromor Scientist whicheducated the farmers on scientific agricultural practices to improve productivity.
The business commenced the extension of farm credit provided by banks to farmersthrough select retail center. This credit is then used by the farmers to purchase farminputs at the retail center. The business also leveraged IT and improved operationalefficiencies of stores.
Currently Retail operates close to 690 stores in the State of Andhra Pradesh andKarnataka and planning entry into Maharashtra and TamilNadu.
Strengths and opportunities:
Coromandel produces DAP & Complex fertilisers from three manufacturing locations Vishakapatnam, Kakinada and Ennore that are all strategically located toserve key markets of Andhra Pradesh, Karnataka, Tamil Nadu and Maharashtra. With themerger of Liberty Phosphate, the Company has expanded its geographical presence toNorthern and Western markets. The Companys brands Gromor and Godavari are all wellestablished. The brand equity enjoyed by these brands in combination with the proximity ofthe manufacturing locations to key markets is one of the key strengths enjoyed byCoromandel.
Over a period of time the Company has been expanding the capacities and the plants arecapable of producing different grades of complex fertilisers including urea based gradesat all locations. The Company has also created adequate infrastructure facilities andstorage facilities commensurate to the production capacities which help in managingvolatility in raw material prices and ensuring uninterrupted production. Productionfacilities for intermediates like phosphoric acid and sulphuric acid in Vizag and Ennorehelp in capturing value addition in own manufacture and derisk the business. Each unitalso has flexibility in processing of different types of raw materials like rock andphosphoric acid irrespective of the countries of origin and maintaining their efficienciesof operations. Captive power source and stake in Andhra Pradesh Gas Power CorporationLimited (APGPCL) helps in keeping the conversion cost under control and efficiencies atpar with best in the Industry. The Company has established key strategic tie-ups for rawmaterials and this ensure sustained availability of materials to operate the plant atoptimal levels of production.
The Company augments its strong presence in fertilisers with offerings in theAgri-Chemicals (pesticides, fungicides and herbicides), Specialty Nutrients and Organicsegments. This complete basket of offerings to the farming community allows Coromandel toaddress all the needs of its customer base and offer holistic solutions. As part of itscontinuing efforts to provide holistic solutions, Coromandel undertakes farmdemonstrations using its products while highlighting scientifically proven agriculturalpractices and conducts soil tests to identify deficiencies and provides tailored advice tothe farming community. The company is also conducting pilot trials for providing farmmechanization services to the farmers and improve agricultural productivity. Thiscombination of a complete basket of products and dissemination of scientifically proventechniques enables Coromandel to build loyalty with farmers.
The vast product offerings of the Companys SND business Primary, Secondaryand Micro nutrients based around crop and soil requirements fulfil complete cropnutrition needs. The business will continue to develop the crop solutions through aknowledge driven approach. With higher price realization on horticulture crops, thesegment will be the next big opportunity. Aggressive support by State governments for dripirrigation programs makes the WSF segment a high growth proposition. Catering to cropneeds through customized solutions will be the driver for the next level of growth.
The Company operates Mana Gromor and Namma Gromor retail centers in Andhra Pradesh andKarnataka, respectively, through which it markets its products directly to the farmers.These Retail centers have become the face of the Company in rural locations and allow forfirst-hand information exchange communication with the farming community. In its 5th yearof operation in the Andhra Pradesh, the Mana Gromor Brand Equity has grown to 5.6 which isconsidered a Very Strong brand.
The Fertiliser Technology Centre at Visakhapatnam has strengths in process and productdevelopment. The company will broaden the scope of Fertilisers R&D to includeagronomic evaluation of products in order to integrate product and process developmentwith performance evaluation and thereby provide validated solutions for improving PlantNutrition and Soil Health.
Having weathered the headwinds from multiple directions in 2012-13 forex, highprices, imports, high channel inventories and a failed monsoon Coromandel has madesignificant strides in 2013-14 to position the business for long-term growth. The Companywill continue to focus on maintaining cost leadership in the industry and will focus onfurther reducing costs. With the commissioning and stabilization of C-Train, the Companyhas positioned itself to be the leading Phosphatic fertiliser player in the country. Inaddition, the Company has improved its manufacturing facilities at Visakhapatnam andEnnore to ensure sustainable operations for the long-term. Besides this, the company islooking forward towards attaining self-sufficiency of Visakhapatnam unit in terms ofphosphoric acid requirements. With this we will be able to meet the requirements ofmanufacturing higher volumes and maintain our cost leadership. We are confident that themanufacturing base of the Company has been positioned to be capable of meeting the needsof the phosphatic fertiliser sector.
The business will continue to strengthen itself as a Complex fertiliser player byoffering region specific value added solutions to the farmer and pursue fortifiedfertilisers (B, ZN, S) to address soil deficiencies. With the acquisition of LPL and LUL,Coromandel has positioned itself to cater to a different customer base in a geographywhere Coromandel brands have relatively low presence. The company will leverage marketingsynergies across both businesses to maximize sales of SSP and Complex fertilisers.
In 2014-15 the company will commercialize the technologies developed in 2013-14 forseveral specialty products water solubles, sulphur and mirconutrients. The companywill also develop fortification technology for enhancing the performance of existingfertiliser grades through incorporation of proprietary additives. In the area of Agronomicresearch, the company will conduct extensive trials with the objective of mapping productsto different soil/crop combinations.
In the current business environment, the Company will maintain strong focus on workingcapital levels to reduce interest costs and unlock cash from trade channels. Finally, theCompany will continue to actively manage foreign exchange exposure and continuallyoptimize positions to reduce downside risk to the business.
Growing demand for food grains to feed a larger population, food security legislation,limited land and water resources are all factors which will be key drivers of futuregrowth for agri-input and crop protection products. With the depreciation of currency andincreasing global demand for generics, Indian Industry is expected to benefit from growthin exports of agrochemicals significantly in coming years. In order to address the growingneed, the Company will focus on specialities and scale up formulation sales based oncaptive technicals including additional range being manufactured by Sabero. The Company isalso actively expanding its global footprint by leveraging Sabero and will continue toincrease its presence in Latin America, Africa and South East Asia. In addition, theCompany will continue to maintain a global focus and increase its reach by increasing itsportfolio of global registrations. The company will also increase its strengths in R&Dby pursuing the establishment of a product synthesis center with capability to developcombination products.
The SND business will leverage its knowledge driven crop approach to capture theemerging markets across the country. The team will focus on providing complete nutritionsolutions in high potential crop clusters by addressing customer needs and requirements.Customized crop products to farmers and dealers will be the key drivers for growth in theperiod ahead. Crop Knowledge will form core of this approach which will be acquiredthrough tie ups.
Retail focus in 2014-15 will be on offering significantly superior customer valueproposition compared to general trade and improved execution. Coromandel Retail has beensteadily gaining customer trust by offering complete farming solution including highquality products at fair prices. Market Research initiatives like setup of Farmer Panelsand Continuous Feedback Systems will be used to understand latest trends and developmentsin farming and tapping lateral needs of farmers. Market Research information will beleveraged to design customer loyalty programs and reward systems. Number of storesextending Farm credit service will be scaled up.
Extensive CRM systems will be introduced at store level to track Store team reach andeffective implementation of customer service. Information Technology (IT) enabledtechnical advisory services will be provided to enhance the stores technicalstrength. Focus on Gromor Webinar and Gromor Scientist andconducting precision farming demos will continue. All customer initiatives will be alignedto increase farmers Return on Investment.
Risk Management at Coromandel is an integral part of our business model, focusing tomitigate adverse impact of risks on our business objectives and enable the Company toleverage market opportunities effectively.
With the implementation of additional supporting infrastructure elements, the companyis in the process of implementing Comprehensive Enterprise Risk Management, which willcover full spectrum approach to Risk Management across the enterprise. This will result inmovement along the Capability Maturity continuum from Comprehensive to Integrated toStrategic levels.
Risk Management Framework
Risk Management Structure
The Risk Management structure at Coromandel spans across different levels which formthe various lines of defense in risk mitigation. Coromandel has a Risk ManagementCommittee, comprising of an independent director, who chairs the committee meetings, andthe Managing Director. The committee members along with the senior executives and BusinessHeads of the Company carry out regular review of risk management practices.
The risks associated with our business are broadly classified into six majorcategories.
Environmental Risk: due to adverse effects on living organisms andenvironment by effluents, emissions, wastes etc., arising due to our organizationsactivities.
Economic Risk: due to downturn or adverse political situations which maynegatively impact on our organizational objectives.
Regulatory Risk: due to inadequate compliance to regulations, contractualobligations or any other statutory violations leading to litigations and loss ofreputation.
Operational Risk: inherent to business operations including manufacturingand distribution operations, tangible or intangible property, any other business activitydisruptions.
Financial Risk: to organization due to major fluctuations in currencymarket, Rise in Interest Rates and possible non recovery of debts.
HR & Legal Risk: due to attrition of any Key Managerial Person ordisruption of operations due to any other human resources issue.
The key risk management practices include those relating to risk assessment,measurement, monitoring, reporting, mitigation actions and integration with strategy andbusiness planning.
The key risks associated with various processes of Companys business are analysedin detail covering causes and sources of the risk, a logical sequence of triggering events(Key Risk Indicators), positive and negative consequences and the likelihood of occurrenceof such consequences and the severity of the impact both in qualitative and quantitativeterms. The Key Risk Indicators are mapped to the job function of respective executives andthe reporting & monitoring frequencies are also defined.
The identified key risks at the Entity Level are evaluated on quantitative,semi-quantitative and qualitative aspects of impact for timely decision on its treatment.
The key risks associated with the Companys business, its likely impact and themitigation mechanism evolved are discussed hereunder. The evaluation of risk is based onmanagements perception and the risks listed below are not exhaustive.
|RISK ||RISK IMPACT ||MITIGATION PLAN |
|Environmental / Economic / Regulatory Risks || || |
|Handling and storage of hazardous materials incl., Ammonia , SO2 etc. ||- Impact on operations || Strict PSMS Implementation |
| ||- Stoppage of production || Strict adherence to maintenance / inspection schedules, training and emergency / disaster management plans. |
| ||- Accidents resulting from release of the hazardous materials and consequent claims || Public Liability Insurance Policy |
| || || ISO 14001 & OHSAS 18001 |
|Un-treated effluents causing pollution ||- Revocation of factory license || Augmenting ETP facilities |
| ||- Civil / criminal action || Strict adherence to PC standards |
|Non-compliance with Legal / Regulatory / Tax Compliance ||- Disruption of operations || Understanding / awareness of regulations and statutes |
|-Including other Countries ||- Legal proceedings against the Company and its officials. || Engagement / advice by renowned lawyers and experts |
| || || Monitoring regulatory changes |
|Non compliance with FCO Standards & Specifications ||- Civil / criminal proceedings || Rigid quality checks at Plants |
| ||- Production stoppages || Test verification of bags |
| ||- Disallowance of subsidy claims || Reprocessing of non-standard materials |
| || || Better bags handling procedures |
|Change in Government Subsidy Policies ||- Impact on turnover / working capital || New NBS Policy greater clarity / certainty |
| ||- Change in product mix || New grades / customized Fertilisers |
| ||- Change in distribution pattern || Increased focus on non-subsidy Business |
| || || Optimisation of rail road transportation. |
| || || Liaison with Government |
|Restriction on sale / usage of some crop protection products in India / abroad ||- Impact on turnover / profitability || Development of newer and safer technical; |
| ||- Negative publicity || Extension of product life-cycle. |
|Operational Risks || || |
|Volatility in the price of key raw materials ||- Impact on revenues || Close monitoring of international prices of raw materials |
| ||- Increased cost of production || Tie-up for expanded product range |
| ||- Increase in working capital requirement || |
| ||- Volume shrinkage || |
|Product life-cycle obsolescence || || Identification of new off-patent molecules |
| || || R&D initiatives |
|Introduction of pest / resistant BT crops or change in crop pattern ||- Impact on turnover / profitability || Identification of emerging pests and suitable molecules |
| || || Introduction of new products |
|Loss due to shrinkage at Rural Retail Centres ||- Impact on profitability || Close monitoring of inventory, regular inspection / audit |
| ||- Financial loss || Daily MIS |
|Financial Risks || || |
|Currency and exchange fluctuation risk ||- Under recovery of Subsidy || Close monitoring of exchange trend |
| ||- Impact on profitability || Forward covers at appropriate time and level |
|Interest rate risk ||- Increase in cost of borrowing || Maintain healthy debt-equity and interest cover ratio |
| ||- Impact on profitability || Sustain good credit rating |
|Credit risk ||- Impact on working capital - Dues becoming bad || Review of credit evaluation and limits |
| ||- Loss of interest || Close monitoring receivables |
|Liquidity risk - Delay in subsidy settlement ||- Impact on working capital || Close monitoring of subsidy dues |
| ||- Increase in cost of borrowing || Increased working capital facilities |
| || || Securitization of subsidy dues |
|Legal & Human Resource || || |
|Contractual Liability Risk ||- Disruption of operations || Clearance of contracts by legal cell |
| ||- Impact on turnover & profitability || Independent experts services for important contracts |
|Attrition of skilled / trained manpower ||- Disruption of operations || Compensation revision inline with market |
| ||- Knowledge dissipation || Succession Planning |
| || || Career planning and training |
In addition, IT related risks can result in loss of important data etc., leading todisruption in operations. These are addressed through adequate back-up mechanism,including Disaster Recovery Centre, authorization verification, regular training programs,regular purchase of licenses in line with the business requirement and other preventivemeasures.
The assets of the Company, including its plant and machinery, as well work in process,inventory and Finished stocks are adequately insured against loss or destruction by fireand allied perils.
Coromandel has adequate internal controls consistent with the nature of business andsize of the operations, to effectively provide for safety of its assets, reliability offinancial transactions with adequate checks and balances, adherence to applicable statues,accounting policies, approval procedures and to ensure optimum use of available resources.These systems are reviewed and improved on a regular basis.
Coromandel has a comprehensive budgetary control system to monitor revenue andexpenditure against approved budget on an ongoing basis.
The Company has its own corporate internal audit function to monitor and assess theadequacy and effectiveness of the Internal Controls and System across all key processescovering various locations. Deviations are reviewed periodically and due complianceensured. Summary of Significant Audit Observations along with recommendations and itsimplementations are reviewed by the Audit Committee and concerns, if any, are reported toBoard.
The Companys overall financial performance for the year 2013-14 has been good.The total revenue stood at Rs. 9442 crore in 2013-14 as compared to Rs. 8627 crore in theprevious year. The Companys PBT is Rs. 494 crore as compared to Rs. 566 crore in theprevious year.
The Company generated Rs. 835 crore (2012-13: Rs. 818 crore) of cash surplus from itsoperations, before changes in working capital and after adjusting for the changes inworking capital the net cash generated from operations is Rs. 1452 crore (2012-13: Rs. 998crore).
During the year, the Board of Directors of the Company, LPL and LUL in their respectivemeetings held on 28 September 2013 approved a Scheme of Amalgamation under Sections 391and 394 of the Companies Act, 1956 (the Scheme) for amalgamation of LPL andLUL with the Company. Pursuant to the Scheme, sanctioned by the Honble High Court ofJudicature of Andhra Pradesh (AP) vide their Order dated 7 April 2014 and bythe Honble High Court of Judicature of Gujarat vide their order dated 24 April 2014,the entire business undertaking of LPL and LUL including all assets and properties, debts,liabilities and duties and obligations have been transferred to and vested in the Company,retrospectively with effect from 1 April 2013 (the Appointed Date as per the Scheme). Thecertified copies of the aforesaid High Court Orders have been filed with the respectiveRegistrar of Companies and the Scheme has been given effect to in these financialstatements.
During the year, the Board of Directors of the Company and its subsidiary, SaberoOrganics Gujarat Limited ("Sabero"), in their meetings held on 24 January 2014approved a Scheme of Amalgamation under Sections 391 and 394 of the Companies Act, 1956(the Scheme) for amalgamation of Sabero with the Company subject to theapprovals of the stock exchanges, the respective shareholders and creditors, the concernedHigh Courts and other regulators. The Company has received their no-objection to theScheme from the stock exchanges and has filed application before the concerned High courtsfor convening the shareholders and creditors meetings.
The Company during the previous year had issued and allotted 28,28,17,658 9% UnsecuredRedeemable Non-convertible Fully Paid Bonus Debentures of Rs. 15 each for every equityshare, aggregating Rs. 424 crores to the shareholders by appropriating the General Reservethrough a Scheme of Arrangement (Scheme) approved by Honble High Court of AndhraPradesh and other relevant authorities. As per the terms of the Scheme, the Company alsohad a right to prepay the entire amount of debentures by giving prior notice to thedebenture holders. During the current year, the Board authorized Committee of Directors ofthe Company, in its meeting has exercised the option to prepay the debentures and approvedearly redemption. Accordingly, the said debentures were redeemed during the year.
Challenging market conditions over the last two years have resulted in additionalcredit being extended to the trade channel. Sustained efforts by the Company to releasemoney locked in trade and subsidy receivables have led to a reduction of Rs. 377 Cr in networking capital. The Company repaid Bonus Debentures of Rs. 424 Cr in the month of March2014, out of the improved trade and subsidy collections. As a result, Companys longterm debt: equity ratio has come down to 0.15 compared to 0.37 in the previous year andthe total debt: equity ratio has come down to 0.64 as against 1.04 in the previous year.The Companys liquidity position continues to remain healthy with year-end cash andbank balance of Rs.457 crore of temporary surplus retained in short term bank deposits/current accounts in addition to term deposits of Rs. 285 Cr with HDFC Limited. TheCompanys long term credit rating by CRISIL continued to be CRISILAA+ (stable) and short term debt rating at "CRISIL A1+".
Value creation and financial analysis
Human resources/Industrial relations
During the year, industrial relations across all the plants continued to remaincordial. Coromandel has received the Best Management Award by LabourDepartment of Government of Andhra Pradesh on 1st May 2013 in recognition ofits harmonious Industrial relations, Industrial productivity and commendable contributiontowards the welfare of labour.
Coromandel strongly believes in continuous Learning and Development (L&D) with anaim to build competitive advantage for its current & future business needs. The focuson Customer Centricity has been enhanced through its structured L&D and Reward& Recognition programs. The training initiative SAVE has been launched,enabling employees behavioural shift from traditional product centric approach toproviding solutions to customer. Advitiya, a development program was alsoinitiated,designed to build capabilities of sales managers in the areas of channelmanagement, customer management and people management.
Coromandel continued its focus on building technical competency of customer facingstaff through Certified Farm Advisor (CFA) Program in association with Acharya N.G. RangaAgricultural University, Hyderabad. The program prepared field executives to improve theproductivity of the farming community by enhancing the knowledge and skills and providinginsights into agricultural practices, Coromandel has completed the surveillance audit andreceived the ISO 10015+ recertification for Training Quality Management system by CSEND,Geneva, which indicates the robustness and deployment effectiveness of L&Dinitiatives.
In view of the rapid changes and intense competition in the industry, a need toredefine the organisation structure in the Sales & Marketing function that would beagile and responsive to the market conditions was felt. Accordingly, the Sales &Marketing branches were reorganised by restructuring the 16 branches across the countryinto 6 Divisional offices. This new structure will leverage the diverse strengths of thevarious businesses and deliver enhanced value for customers.
Coromandel strongly believes the primary success of any mergers and acquisitions liesin the first step of integrating people and people related processes. In line with that,Coromandel has integrated HR processes and deployed practices like Policy Deployment,Position Description, Performance Management System and Learning & Developmentinitiatives in Liberty Phosphates Limited and Sabero Organics Gujarat Limited.
As the organization keeps aggressively expanding its domestic and global footprint,keeping the ever increasing workforce across geographies connected to the SeniorLeadership is important. An enterprise wide Communication Program under the "Chronicle"brand was initiated. As part of this two way communication initiative the ManagingDirector and Business Heads address to employees across businesses and locations throughwebex on a quarterly basis. Chronicle has won the National Award forthe best internal communication initiative from Public Relations Society of India inDecember 2013.
Coromandel promotes integrity, trust and openness in the organization at all levels byliving its Values & Beliefs - "The 5 Lights". Every employee undergoes anawareness session on the Five Lights, Coromandel Guide to Business Conduct (CGBC),Whistleblower Policy and Prevention of Sexual Harassment Policy. An undertaking to abideby the CGBC and other policies mentioned above is taken from each employee.
Coromandel has continuously increased the thrust on Total Employee Involvement in TQMfor focused improvements in the areas of productivity, cost, efficiency and safety byencouraging sharing & learning of best practices across locations, external platformsand industries. Employee involvement in TQM initiatives has won various accolades inprominent Quality forums including:
1. Outstanding and Excellence awards for its best Kaizens in 9th QCFIKaizencompetition, Chennai, January 2014.
2. Indian National Suggestion Scheme Associations Award for Excellence inSuggestion Scheme, Best idea Exhibit, Best Suggestion Case study, New Delhi, February2014.
The total number of employees in the Company was 8145 Nos. (Permanent:3329 andOutsourced & Trainees: 4816) as on March 31, 2014.
Caution Note :
The statements in the MD&A report describing your Companys expectations areforward looking statements. Actual results may differ owing toenvironmental and business dynamics.
Annexure to the Directors Report
DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors of Coromandel International Limited confirm that in thepreparation of the Statement of Profit and Loss for the year ended 31st March2014 and the Balance Sheet as at that date ("financial statements") :
the applicable accounting standards have been followed
appropriate accounting policies have been selected and applied consistently andjudgments and estimates that are reasonable and prudent have been made so as to give atrue and fair view of the state of affairs of the Company as at the end of the financialyear and of the profit of the Company for that period.
proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities. To ensure this, the company has established internal control systems,consistent with its size and nature of operations, subject to the inherent limitationsthat should be recognized in weighing the assurance provided by any such system ofinternal controls. These systems are reviewed and updated on an ongoing basis. Periodicinternal audits are conducted to provide reasonable assurance of compliance with thesesystems. The Audit Committee meets at regular intervals to review the internal auditfunction.
Proper systems are in place to ensure compliance of all laws applicable to theCompany.
The financial statements have been prepared on a going concern basis.
| ||On behalf of the Board |
|Place: Hyderabad ||A Vellayan |
|Dated: 12th May 2014 ||Chairman |
Information under Section 217 (1) (e) of, the Companies Act, 1956 read with Companies(Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 and formingpart of Directors Report.
A. CONSERVATION OF ENERGY
Company has formed Operational Improvement Teams and various energy conservationschemes formulated by the Teams have yielded considerable energy savings during the year2013-14.
At Visakhapatnam Plant, the following improvements were implemented which resulted inenergy savings:
1600KVA transformer was replaced by 250KVA transformer in GFCL terminal,resulting in minimizing transformer losses
Quick melter wall thickness was increased by 6" to minimize water seepageand avoid consequent energy consumption
Insulation for 5 Kilometer long 16" Ammonia pipe line renewed, resulting inlower heat losses from system
Modern high efficiency 2 nos 400 KWH seawater pumps have been installedreplacing old 2nos 600 KWH pumps.
Replaced age old glycol heater with new glycol heater ENCON and SGA teams havebeen constituted to constantly look at the energy conservation and other improvementschemes.
B. TECHNOLOGY ABSORPTION
Deployed SS310 piping for acid circulation lines, replacing age old cast ironpiping
Upgradation of PLC from S5-S7 for B bagging machine
Some of the pumps, blowers, storage tanks, variable frequency drives, motors,motor control centres and heat exchangers were replaced with higher capacity and efficientmodern equipment.
Installed modern analytical instruments, process control equipment, inspection& condition monitoring equipment and weigh scales for better process control andcompliance
C. RESEARCH AND DEVELOPMENT
At Visakhapatnam Plant
Trials were conducted with different grades rock phosphates for production ofPhosphoric acid and Single Super Phosphate (SSP)
Commercialised 24-24-0-8S production
Two new fortified grades produced on commercial scale using in-house know-how Zincated DAP and Boronated SSP.
Production technologies developed for several specialty products designed todeliver sulphur and micronutrients to the soil.
R & D Expenses incurred at the in-House Approved Centres
| || ||Rs. In Lakhs |
|Nature of Expenses ||2013-14 ||2012-13 |
|Capital Expenditure ||111 ||142 |
|Revenue Expenditure ||419 ||391 |
D. FOREIGN EXCHANGE EARNINGS AND OUT GO
| || ||Rs. In Lakhs |
|Nature of Expenses ||2013-14 ||2012-13 |
|Used ||589217 ||513051 |
|Earned ||13988 ||10883 |
|FORM A || || |
| ||Current Year ||Previous Year |
| ||2013-14 ||2012-13 |
|A. Power & Fuel consumption || || |
|1. Electricity || || |
|a) Purchased || || |
|Units (Lakh Units) ||1,497.18 ||1,015.51 |
|Amount (Rs. Lakhs) ||8,238 ||5,902 |
|Rate / Unit (Rs. / kwh) ||5.50 ||5.81 |
|b) Own generation || || |
|Through DG Sets || || |
|Units (Lakh Units) ||16.46 ||122.84 |
|Units / litre of HSD ||3.17 ||4.16 |
|Rate / Unit (Rs. / kwh) ||20.19 ||15.00 |
|Through TG Set || || |
|Units (Lakh Units) || |
|Units / litre LSHS || || |
|Rate / Unit (Rs. / kwh) ||0.32 ||0.36 |
|2. Coal || ||Not used |
|Quantity (MT) ||5,142.65 ||- |
|Total cost (Rs. Lakhs) ||354.14 ||- |
|Rate / Unit (Rs. / MT) ||6,886.00 ||- |
|3. a) Fuel: Furnace oil / LSHS || || |
|Quantity (K. Litres) ||1,383.52 ||4,046.01 |
|Total cost (Rs. Lakhs) ||734 ||2,164 |
|Rate / Unit (Rs. / K. Litres) ||53,055 ||53,486 |
|b) Compressed Natural Gas || || |
|Quantity SM3 in Lakhs ||87.21 ||57.83 |
|Total amount (Rs. In Lakhs) ||1,890 ||1,149 |
|Average Rate per 1000 SM3 (Rs.) ||21,679 ||19,886 |
|B. Consumption per MT of Fertilisers Produced || || |
|Electricity (KWH) ||63.28 ||79.24 |
|Fuel: Furnace Oil / LSHS (K.Litres) ||0.0011 ||0.0042 |
|Compressed Natural Gas (SM3) ||4.34 ||3.54 |
Statement under Section 217(2A) of the Companies Act, 1956
a) Employed throughout the Financial Year and in receipt of remuneration aggregating Rs.60,00,000 or more
|Name, age and Qualification ||Designation and nature of duties ||Date of commence- ment of employment ||Experi- ence in years || |
Remunera- tion (Rs.)
|Last Employment |
|Kapil Mehan, 55 Graduate in Vet. Science, PGDM (Agri) (IIMA) ||Managing Director ||20-09-2010 ||33 ||2,28,54,123 ||Executive Director Tata Chemicals Limited |
|Arun Leslie George, 47 M.A(SW), PMIR ||Sr Vice President & Head of HR ||01-10-2003 ||24 ||83,58,213 ||Deputy General Manager- HR EID Parry (India) Limited |
|P Gopalakrishna, 55 B.Sc (Ag), PGDM (IIMA) ||Sr Vice President- Spl. Nutrients & Business Development ||01-12-2003 ||31 ||75,06,421 ||Deputy General Manager- Marketing EID Parry (India) Limited |
|S Govindarajan, 51 B.Tech. (Mech), GDMM (IIMM) ||Sr. Vice President & Head - SSP Business ||26-09-1992 ||29 ||84,48,430 ||Asst. Manager National Fertilisers Limited |
|S Sankarasubramanian, 44 B.Sc, ICWA ||Sr Vice President & Chief Financial Officer ||01-12-2003 ||23 ||72,07,905 ||Deputy General Manager Finance EID Parry (India) Limited |
|R. D. Singh 52 Ph.D in Agronomy PLAM (IIMC) ||Sr. Vice President & Head of Retail ||16-05-2012 ||29 ||76,19,131 ||Vice President Marketing Matix Fertilisers and Chemicals Limited |
|b) Employed for part of the Financial Year and in receipt of remuneration aggregating Rs. 5,00,000 per month or more || || || || || |
|Dr G Ravi Prasad, 58 Ph.D in Agricultural Chemicals ||President Marketing Fertilisers & Organic ||01-04-2007 ||31 ||54,37,826 ||Vice President-Commercial Zuari Industries Limited |
1. Remuneration includes salary and allowances, commission where applicable,Companys contribution to Provident Fund, Superannuation Fund and Group GratuityScheme, reimbursement of medical expenses at actuals, and monetary value of perquisitescalculated in accordance with the Income Tax Act/Rules.
2. The employment of all employees of the Company is of contractual nature.
3. There are no employees in the service of the Company within the category covered bySub-Section (2)(iii) of Section 217(2A) of the Companies Act, 1956.
4. None of the above employees is a relative of any Director of the Company.
| ||On behalf of the Board |
|Place: Hyderabad ||A Vellayan |
|Dated: 12th May 2014 ||Chairman |
Disclosure pursuant to Clause 12 of SEBI
(Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines 1999
|Nature of Disclosure ||Particulars || || |
|a. Options granted ||No Options were granted during the year. The total options granted upto date is 75,72,000. Each Option gives the grantee a right to subscribe to one equity share of Rs. 1/- each of the Company. || || |
|b. The pricing Formula ||The Options carry a right to subscribe to equity shares at the closing price on the Stock Exchange in which there was highest trading volume, prior to the date of grant of the Options. || || |
|c. Options vested ||52,03,962 || || |
|d. Options exercised ||33,87,926 || || |
|e. The total no of shares arising as a result of exercise of option ||33,87,926 || || |
|f. Options lapsed/surrendered ||17,82,898 || || |
|g. Variation of terms of Option ||Vesting schedule has been varied in certain cases. The exercise period for the all the options vested in the 2nd, 3rd and 4th year has been extended from 3 years to 6 years. || || |
|h. Money realised by exercise of Options ||Rs. 1,632.48 lakhs || || |
|i. Total no of Options in force ||24,01,176 || || |
|j. (i) Details of Options granted to Senior Management Personnel ||Name and Designation ||No of Options granted || |
| ||Mr Kapil Mehan ||9,46,000 || |
| ||Managing Director || || |
| ||Dr G Ravi Prasad ||2,70,400 || |
| ||President-Marketing Fertilisers & Organic || || |
| ||Mr Arun Leslie George ||2,70,400 || |
| ||Sr Vice President & Head of HR || || |
| ||Mr P Gopalakrishna ||2,70,400 || |
| ||Sr Vice President-Speciality Nutrients and Business Development || || |
| ||Mr S Sankarasubramanian ||1,37,200 || |
| ||Sr Vice President & Chief Financial Officer || || |
|(ii) Any other employee who received a grant in any one year of Option amounting to 5% or more of Options granted during the year ||Mrs Hima Srinivas ||1,20,000 || |
| ||Mr C Sitaram ||1,44,000 || |
| ||Mr K Sankaranarayanamoorthy ||1,44,000 || |
| ||Mr Manoj K Agarwal ||91,400 || |
| ||Mr Parvez Sheikh ||80,000 || |
| ||Mr R Vaidyanathan ||80,000 || |
| ||Mr Suri V ||96,000 || |
| ||Mr K Muruganandham ||96,400 || |
| ||Mr M Ravindra Rao ||72,000 || |
| ||Mr Hari Shankar ||72,000 || |
|(iii) Employees who were granted Options, during any one year, equal to or exceeding 1% of the issued capital of the company at the time of grant. ||None || || |
|k. Diluted Earnings Per Share (EPS) pursuant to issue of shares on exercise of Option calculated in accordance with Accounting Standard AS-20. ||Rs. 12.03 per share || || |
|l. (i) Method of calculation of employee compensation cost ||The employee compensation cost has been calculated using the intrinsic value method of accounting to account for Options issued under the ESOP Scheme 2007. The stock based compensation cost as per the intrinsic value method for the financial year 2013-14 is Nil. || || |
|(ii) Difference between the compensation cost using the intrinsic value of the stock Options (which is the method of accounting used by the company) and the compensation cost that would have been recognized in the accounts if the fair value of Options had been used as the method of accounting. ||Rs. 357 lakhs || || |
|(iii) Impact of the difference mentioned in (ii) above on the profits of the company ||Net Income ||Rs. in lakhs || |
| ||As reported ||34485 || |
| ||Less: fair value compensation cost ||357 || |
| ||(Black Sholes model) ||34128 || |
|(iv) Impact of the difference mentioned in (ii) above on the EPS of the company || ||Basic (Rs.) ||Diluted (Rs.) |
| ||As reported ||12.05 ||12.03 |
| ||As Adjusted ||11.93 ||11.91 |
|m. (i) Weighted Average exercise price of Options ||Rs. 232.62 per equity share || || |
|(ii) Weighted average fair value of Options ||Rs. 68.38 per equity share || || |
|n. (i) Method used to estimate the fair value of Options ||Black Sholes Model || || |
|(ii) Significant assumptions used (weighted average information relating to all grants): || || || |
|(a) Risk-free interest rate ||8.0% || || |
|(b) Expected life of the Option ||4-6 years || || |
|(c) Expected volatility ||0.39 0.47 || || |
|(d) Expected dividend yields ||700% || || |
|(e) Price of the underlying share in market at the time of option grant ||Date of grant ||Market Price (Rs.) || |
| ||31.8.2007 ||44.58 || |
| ||22.1.2008 ||56.08 || |
| ||22.4.2008 ||67.88 || |
| ||22.7.2008 ||59.95 || |
| ||22.10.2008 ||62.75 || |
| ||18.3.2009 ||45.10 || |
| ||19.10.2010 ||317.30 || |
| ||12.01.2011 ||287.50 || |
| ||21.07.2011 ||334.35 || |
| ||18.10.2011 ||315.00 || |