The information in this section is qualified in its entirety by, and should be read together with, the more detailed financial and other information included in this Prospectus, including the information contained in ―Risk Factors‖, ―Management‘s Discussion and Analysis of Financial Condition and Results of Operations of our Company‖ and ―Financial Statements‖ beginning on page 20, 262 and 223 respectively.
OVERVIEW
Incorporated in 1996, our Company M/s. Bohra Industries Limited is an ISO 9001:2008, ISO 14001: 2004 and OHSAS 18001: 2007 certified Company engaged in manufacturing of Single Super Phosphate (SSP) both in powder and granulated form. We have our registered office and manufacturing facility situated at Udaipur, Rajasthan.
Our manufacturing facility located at Udaipur, Rajasthan is well equipped with required facilities including machinery, crane, conveyor belt, other handling equipments to facilitate smooth manufacturing process and easy logistics. We endeavor to maintain safety in our premises by adhering to key safety norms. Our manufacturing process is completely integrated from procurement of raw materials and final testing and packing of fertilisers for direct use by our customers.
Our product, SSP fertilizer is being sold under brand name MAHALAXMI, in 17 states of India by our Company and is also simultaneously marketed by leading fertilizer companies of India. We have entered into Memorandum of Understanding for our product SSP with Hindustan Insecticides Limited for supply of minimum 30,000 MT per annum of SSP for a period of one year from August 03, 2016 to August 02, 2017 in the states of Maharashtra, Rajasthan, Uttar Pradesh and Assam. We have also entered into Memorandum of Understanding with Rahstriya Chemicals and Fertilisers Limited for supply of minimum 44,500 mt per annum of SSP in the states of Punjab, Harayana, Madhya Pradesh, Chhattisgarh, Odisha, Rajasthan, Uttar Pradesh and West Bengal. Apart from this, we also sell our products through other registered dealers in Assam, Tripura, Jharkhand, Chhattisgarh and Uttaranchal.
Our Company is well equipped with in-house testing laboratory to test the products. Before commencement of the manufacturing process, the raw materials purchased by our Company have to undergo a quality check to ensure that they are of relevant quality and chemical composition and the finished product also undergo a final quality check before it is packed in HDPE bags. Our in house testing laboratory regulates and monitors the quality of fertilizer mixtures, packing and marking on the fertilizer bags. Our laboratory is equipped with various instruments like, electronic analytical balance, ph meter, sieve shaker, muffle furnace, water distillation plant, magnetic stirrer etc. The raw materials and finished products are also subjected to various physical and chemical tests so that that they meet the required specifications. Our products, processes and inputs has to undergo a special quality test conducted by Agricultural Commissionorate, Rajasthan, Jaipur to ensure that the same is of the requisite quality and contains the requisite chemical composition. Apart from providing quality products at an affordable cost, our Company also emphasizes on the product reach through its distribution network.
Our Company also plans to enhance the production capacity of existing manufacturing unit of SSP from 1,20,000 mt p.a to 3,00,000 mt pa. As part of our business strategy, our Company plans to diversify its product portfolio by entering into new product lines such as Triple Super Phosphate (TSP), Food Grade Phosphoric acid (PA) and Nitrogen Phosphorus and Potassium (NPK). We have also entered into a Memorandum of Understanding with Yunnan Design Institute of Chemical Engineering Co Limited, Kunming, China for supply of technological processes for the proposed products and the entire installation will be initiated under their consultancy and supervision. Our Company plans to sell TSP and NPK through the existing dealer distribution network and Food Grade Phosphoric acid through acid distributors.
Our Company has entered into an Memorandum of Understanding with Department of Agriculture, Government of Rajasthan, whereby the Finance Department (Tax division), Government of Rajasthan, vide order no F 12(105)FD/Tax/2015-41 dated September 07, 2016 has facilitated a customized package in favour of our Company, for expansion cum diversification of the proposed project for manufacturing of fertilisers (SSP, TSP, NPK and Food grade Phosphoric acid). Our Company will be eligible for the maximum amount of subsidy which shall be 75% of the total amount of taxes i.e. VAT and CST, which have become due and deposited. Apart from subsidy, our Company shall be also be eligible for 75% exemption from payment of entry tax on capital goods required for setting up of expansion project, 50% exemption from electricity duty for 10 years on consumption of electrical energy in manufacturing of goods and 100% exemption from payment of stamp duty on purchase of lease of land and construction on such land.
Our Company has approached State Bank of India for sanction of amount for the proposed project and has also received in principle approval from same for expansion cum diversification project, however, approval of other consortium bank partners is pending.
For the year ended March 31, 2016 our Company has recorded net sales of Rs 11,299.70 lakhs and a net profit of Rs 451.21 lakhs as compared with the net sales of Rs 9,632.37 lakhs and net profit of Rs 432.28 lakhs during the fiscal year 2012.
