MIRA
INFORM REPORT
|
Report Date : |
3rd
November 2006 |
IDENTIFICATION
DETAILS
|
Name : |
DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION
LIMITED |
|
|
|
|
Registered Office : |
Opposite Golf Course, Shastri
Nagar, Yerawada, Pune – 411 006, Maharashtra, India |
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|
Country : |
India |
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|
|
|
Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
31.05.1979 |
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|
|
|
Com. Reg. No.: |
11-21360 |
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|
CIN No. |
U24121MH1979SGC021360 |
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|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD10002G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACD1388D |
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|
|
Legal Form : |
It is a public limited liability company. The company's shares are listed on the
Stock Exchanges. |
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|
|
|
Line of Business : |
Manufacturing of Ammonia, Methanol, Nitric Acids (in
various concentrations), Low Density Prilled Ammonium Nitrate (Explosive
Grade) and Nitrophosphate Fertilisers, Chemical Fertilisers containing
Nitrates and Phosphates
(Nitrophosphates/Ammonium Nitrate Phosphate), Organic Chemicals,
Acrylic Alcohols, Methyl Alcohol and Ammonium Nitrate. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD
20000000 |
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|
|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company
having satisfactory track. Directors
are reported as experienced, respectable and resourceful industrialists. Their trade relations are reported as
fair. General financial position is
satisfactory. Payments are usually
correct and as per commitments. The company can be considered normal for your
business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Opposite Golf Course, Shastri
Nagar, Yerawada, Pune – 411 006, Maharashtra, INDIA |
|
Tel. No.: |
91-20-26684155/26684342/26684597/26684235/26458000 |
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Fax No.: |
91-20-26687499/26683727 |
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E-Mail : |
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|
Website : |
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Factory
1 : |
Plot No. K-1, MIDC Industrial Area, Taloja, A. V. – 410 208,
District Raigad, Maharashtra |
|
Tel.
No.: |
91-22-27412411/2412/27412810/11/12 |
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Fax
No.: |
91-22-27412413 |
DIRECTORS
|
Name : |
C. K. Mehta |
|
Designation : |
Chairman |
|
Qualification : |
Undergraduate |
|
Date of Appointment : |
31.05.1979 |
|
Other Directorships :- |
Ø
Deepak Nitrite Limited – Managing Director ·
Hindustan Oil Exploration Company Limited ·
Blue Shell Investment Private Limited ·
Deepak Medical Foundation ·
Sofotel Software Services Private Limited ·
The Lakaki Works Private Limited ·
Deepak Asset Reconstruction Private Limited |
|
|
|
|
Name : |
D. C. Mehta |
|
Designation : |
Director |
|
Qualification : |
B. Sc. |
|
Date of Appointment : |
31.05.1979 |
|
Other Directorships :- |
·
Deepak Nitrite Limited ·
Nova Synthetic Limited ·
Skyrose Finvest Private Limited ·
Sundown Finvest Private Limited ·
Forex Leafin Private Limited ·
Pranawa Leafin Private Limited ·
Hardik Leafin Private Limited ·
Samoon Investment & Finance Private Limited ·
The Lakaki Works Private Limited |
|
|
|
|
Name : |
Mr. S. C. Mehta |
|
Designation : |
Vice Chairman and
Managing Director |
|
Qualification : |
B. Com., M.B.A. (U.S.A.) |
|
Date of Appointment : |
04.09.1985 |
|
Other Directorships :- |
·
Thermon Manufacturing Company Limited, U.S.A. ·
Deepak Agro Solutions Limited ·
Smartchem Technologies Limited ·
Stiffen Credits & Capital Private Limited ·
Setup Credits & Capital Private Limited ·
Superpose Credits & Capital Private Limited ·
Checkpoint Credits & Capital Private Limited ·
Storewell Credit & Capital Private Limited ·
Profilic Credits & Capital Private Limited ·
Robust Credits & Capital Private Limited ·
Staunch Credits & Capital Private Limited ·
Epitome Credits & Capital Private Limited ·
Suitwell Credits & Capital Private Limited ·
Skyrose Finvest Private Limited ·
Sundown Finvest Private Limited ·
Forex Leafin Private Limited ·
Pranawa Leafin Private Limited ·
Hardik Leadin Private Limited ·
Samoon Investment & Finance Private Limited ·
Deepak Phosphatic Private Limited Fertilisers Association of
India |
|
|
|
|
Name : |
Mr. D. Basu |
|
Designation : |
Director |
|
Qualification : |
Master’s Degree in Economics |
|
Date of Appointment : |
27.07.2000 |
|
Other Directorships :- |
·
Securities Trading Corporation of India Limited ·
Rain Calcining Limited ·
Sun F & C Asset Management (India) Private Limited ·
Chambal Fertilisers & Chemicals Limited ·
Peerless General Finance & Investment Company Limited ·
Mascot Systems Limited ·
Asian Paints (India) Limited ·
Saregama (India) Limited ·
Jet Airways (India) Private Limited ·
India Access Limited SBI Cards & Payment
Services Private Limited |
|
|
|
|
Experience : |
S. S. Marathe |
|
Date of Appointment : |
Director
|
|
|
|
|
Name : |
R. A. Shah |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr. A. C. Mehta |
|
Designation : |
Director |
|
Qualification : |
B. Sc. (Hons) M. S. Chemical Engineers (USA) |
|
Date of Appointment : |
22.05.2003 |
|
Other Directorships :- |
·
Deepak Nitrite Limited ·
Deepak Refineries Limited ·
Signassure Services India Limited ·
Blue Shell Investments Private Limited ·
Stillhard Credits and Capital Private Limited ·
Stiffen Credits & Capital Private Limited ·
Setup Credit & Capital Private Limited ·
Checkpoint Credit & Capital Private Limited ·
Storewell Credit &
Capital Private Limited ·
Prolific Credits & Capital Private Limited ·
Robust Credits & Capital Private Limited ·
Staunch Credits & Capital Private Limited ·
Epitome Credits & Capital Private Limited ·
Suitwell Credits & Capital Private Limited ·
Skyrose Finvest Private Limited ·
Sundown Finvest Private Limited ·
Forex Leafin Private Limited ·
Pranawa Leafin Private Limited ·
Hardik Leafin Private Limited ·
Amoon Investment & Finance Private Limited ·
Fofotel Software Private Limited ·
Superpose Credits & Capital Private Limited ·
Vittakshem Insurance and Finance Services Private Limited ·
The Lakaki Works Private Limited Deepak Asset Reconstruction
Private Limited |
|
|
|
|
Name : |
Mr. N. C. Singhal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. A. C. Mehta |
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Designation : |
Director |
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|
|
|
Name : |
U. P. Jhaveri |
|
Designation : |
Director
|
|
|
|
|
Name : |
Aioke Sengupta |
|
Designation : |
(Nominee of IDBI) |
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|
|
|
Name : |
Dr. T. K. Chatterjee |
|
Designation : |
Chief Operating Officer |
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|
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|
Name : |
N. D. Joshi |
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Designation : |
Chief Financial Officer |
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|
Name : |
T. D. Mathwani |
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Designation : |
Sr. Vice-President (Projects & Technology) |
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|
Name : |
R. Sriraman |
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Designation : |
Sr. Vice-President (Legal) & Company
Secretary |
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|
Name : |
R. P. Karnik |
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Designation : |
Vice-President (Projects) |
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|
Name : |
D. A. Desai |
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Designation : |
Vice-President (Co-ordination) |
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|
Name : |
S. P. Arya |
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Designation : |
Vice-President (Manufacturing) |
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|
Name : |
S. M. Desai |
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Designation : |
Vice-President (Co-ordination) |
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|
Name : |
A. C. Augustine |
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Designation : |
Vice-President (Human Resource) |
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Name : |
V. S. Laghate |
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Designation : |
Vice-President (Strategic Planning) |
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|
Name : |
Mr. S.
R. Wadhwa |
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Designation : |
Director
|
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|
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|
Name : |
Mrs.
Parul S. Mehta |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. V.
Y. Kelkar |
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Designation : |
Vice
President (Corporate Communication) |
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|
|
Name : |
K. V.
Nayak |
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Designation : |
Vice-President
(Agri- Business) |
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|
Name : |
Mr.
Anil Rakheja |
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Designation : |
Vice-
Presidnent (Project ) |
MAJOR SHAREHOLDERS
As on 30.06.2003
|
Names
of Shareholders |
No. of shares
|
% of shareholding
|
promoters'
holdings
|
|
|
|
Indian Promoters |
20623966 |
28.17 |
non
promoter's holdings
|
|
|
|
Mutual Funds and UTI |
6583955 |
8.99 |
|
Banks, Financial Institutions and Insurance Companies |
7128077 |
9.74 |
others
|
|
|
|
Private Corporate Bodies |
1572056 |
2.15 |
|
NRIs / OCBs / Foreign others |
4138283 |
5.65 |
any
other
|
|
|
|
General Public |
33158606 |
45.30 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Ammonia, Methanol, Nitric Acids (in
various concentrations), Low Density Prilled Ammonium Nitrate (Explosive
Grade) and Nitrophosphate Fertilisers, Chemical Fertilisers containing
Nitrates and Phosphates
(Nitrophosphates/Ammonium Nitrate Phosphate), Organic Chemicals,
Acrylic Alcohols, Methyl Alcohol and Ammonium Nitrate. |
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Products : |
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Brand Names : |
Optimex, Optiform, Optispan and Mahadhan |
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Export To : |
Ammonium Nitrite and Nitric Acid to Saudi Arabia, Dubai, Kenya
and Uganda |
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Import From : |
Methanol and Ammonium from Qatar, Iran, Saudi,
Ukraine, Russia, Europe and Far East |
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Terms : |
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Purchase : |
L/C, D/A and D/P |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Ammonia |
(MT) |
90000 |
90000 |
95663 |
|
CNA |
(MT) |
79200 |
79200 |
84659 |
|
DNA |
(MT) |
297000 |
297000 |
209638 |
|
Methanol |
(MT) |
100000 |
100000 |
63693 |
|
AN |
(MT) |
90000 |
90000 |
98113 |
|
CO2 |
(MT) |
16500 |
16500 |
17565 |
|
ANP |
(MT) |
229500 |
229500 |
56127 |
GENERAL
INFORMATION
|
Customers : |
·
Methanol ·
Nitric Acid ·
Strong Nitric Acid (SNA) ·
Dry Ice ·
Dilute Nitric Acid (DNA) ·
Concentrated Nitric Acid (CAN) ·
Low Density Ammonium Nitrate (LDAN) |
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No. of Employees : |
1050 |
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Bankers : |
Ø State
Bank of India, Pune, Maharashtra, India Ø Dena
Bank, Pune, Maharashtra, India Ø Central
Bank of India, Pune, Maharashtra, India Ø Bank
of Baroda, Pune, Maharashtra, India |
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Facilities : |
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Banking Relations : |
-- |
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Auditors : |
B. K. Khare & Company Chartered Accountants, Mumbai, Maharashtra, India |
|
|
|
|
Associates: |
Ø
Deepak Nitrite Limited Deepak Complex, National Games
Road, Yerawada, Pune – 411 006,
Maharashtra Tel. 91-20-26689265 Fax. 91-20-26685448 Ø
Aryan Pesticides Limited Ø
Checkpoint Credits & Capital Private Limited Ø
Deepak Refinery Limited Ø
Hardik Leafin Private Limited Ø
Pranava Leafin Private Limited Ø
Sapna Investments Private Limited Ø
Stiffen Credits & Capital Private Limited Ø
Superpose Credits & Capital Private Limited Ø
Yerawada Investments Limited Ø
Blue Shell Investments Private Limited Ø
Deepak Agro Solutions Limited Ø
Deepak Phosphatics Private Limited Ø
Forex Leafin Private Limited Ø
Nova Synthetic Limited Ø
Prolific Credits & Capital Private Limited Ø
Skyrose Finvest Private Limited Ø
Sofotel Software Services Private Limited Ø
Sundown Finvest Private Limited Ø
The Lakaki Works Private Limited |
|
|
|
|
Subsidiaries |
Smartchem Technologies Limited (from 09.12.2003) |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
125,000,000 |
Equity Shares |
Rs.10/- each |
Rs.1,250.000 millions |
|
1,000,000 |
Cumulative Redeemable
Preference Shares |
Rs.10/- each |
Rs. 100.000 millions |
|
|
GRAND
TOTAL |
|
Rs.1,350.000
millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
8,82,04,943 |
Equity Shares |
Rs.10/- each |
Rs. 882.049 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
882.049 |
882.049 |
882.049 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4854.718 |
4360.716 |
3845.997 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5736.767 |
5242.765 |
4728.046 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1760.801 |
908.521 |
1319.962 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
1760.801 |
908.521 |
1319.962 |
|
|
DEFERRED TAX LIABILITIES |
483.114 |
510.686 |
609.754 |
|
|
|
|
|
|
|
|
TOTAL |
7980.682 |
6661.972 |
6657.762 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2694.695 |
2964.734 |
2872.402 |
|
|
Capital work-in-progress |
2256.755 |
810.942 |
503.380 |
|
|
|
|
|
|
|
|
INVESTMENT |
2266.543 |
2484.936 |
2304.440 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Interest Accrued on Deposits |
9.445
|
9.346
|
29.272 |
|
|
Inventories |
609.118
|
383.605
|
385.393 |
|
|
Sundry Debtors |
906.034
|
548.191
|
867.550 |
|
|
Cash & Bank Balances |
226.665
|
231.322
|
430.653 |
|
|
Loans & Advances |
490.457
|
417.534
|
558.644 |
|
|
Other Current Assets |
102.000
|
0.000
|
0.000 |
|
Total Current Assets |
2343.719 |
1589.998
|
2271.512 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1153.585 |
724.956 |
884.554 |
|
|
Provisions |
452.717 |
463.682 |
409.418 |
|
Total Current Liabilities |
1606.302 |
1188.638
|
1293.972 |
|
|
Net Current Assets |
737.417 |
401.360
|
977.540 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
25.272 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7980.682 |
6661.972 |
6657.762 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
5954.946 |
5009.473 |
4963.029 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
1117.011 |
1124.619 |
974.153 |
|
Provision
for Taxation |
319.291 |
327.119 |
276.919 |
|
Profit/(Loss)
After Tax |
797.720 |
797.500 |
697.234 |
|
|
|
|
|
|
Export
Value |
139.502 |
92.873 |
88.203 |
|
|
|
|
|
|
Import
Value |
1939.105 |
792.093 |
796.068 |
|
|
|
|
|
|
Total
Expenditure |
4648.648 |
3620.785 |
3922.728 |
SUMMARISED
RESULTS
|
PARTICULARS |
|
30.06.2006 1st Qtr |
30.09.2006 2nd Qtr |
|
Sales Turnover |
|
1666.700 |
2125.600 |
|
Other Income |
|
66.100 |
106.400 |
|
Total Income |
|
1732.800 |
2232.000 |
|
Total Expenditure |
|
1295.800 |
1894.000 |
|
Operating Profit |
|
437.000 |
338.000 |
|
Interest |
|
25.100 |
28.400 |
|
Gross Profit |
|
411.900 |
309.600 |
|
Depreciation |
|
78.100 |
89.800 |
|
Tax |
|
60.400 |
62.800 |
|
Reported PAT |
|
247.900 |
157.000 |
200606 Quarter 1 :- Other income includes segment related rs. 15.20 millions unallocated Rs. 40.40 million expenditure includes (Increase) / Decrease in Stock in trade Rs. 41.40 millions consumption of Raw Materials Rs. 280.80 millions staff cost Rs. 105.10 million traded goods purchases rs. 668.70 million other expenditure Rs. 199.80 million tax include provision for current tax Rs. 58.50 million deferred tax Rs. 25.50 million fringe benefit tax Rs. 1.90 million EPS is basic & Diluted status of investor complaints for the quarter ended June 30, 2006 Complaints pending at the beginning of the quarter Nil Complaints received during the quarter 03 complaints disposed off during the quarter 03 complaints unresolved at the end of the quarter nil.
200609 Quarter 2 :- Note : 1) Other
expenditure = Other Expenditure of Rs. 2409 lacs + Extraordinary items of Rs.
241 lacs. 2) Aggregate of non-promoters shareholding indicates aggregate of
public shareholding.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.24 |
0.22 |
0.25 |
|
Long Term Debt Equity Ratio |
0.24 |
0.22 |
0.24 |
|
Current Ratio |
1.03 |
1.05 |
1.11 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.90 |
0.80 |
0.82 |
|
Inventory |
12.34 |
13.77 |
11.73 |
|
Debtors |
8.43 |
7.48 |
5.76 |
|
Interest Cover Ratio |
17.82 |
13.99 |
7.73 |
|
Operating Profit Margin (%) |
21.59 |
28.73 |
27.16 |
|
Profit Before Interest and Tax Margin (%) |
16.43 |
22.85 |
21.47 |
|
Cash Profit Margin (%) |
16.29 |
20.94 |
19.08 |
|
Adjusted Net Profit Margin (%) |
11.14 |
15.06 |
13.40 |
|
Return on Capital Employed (%) |
14.78 |
19.84 |
20.83 |
|
Return on Net Worth (%) |
12.43 |
16.00 |
16.28 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.67.00/- |
|
Low |
Rs.64.05/- |
LOCAL AGENCY
FURTHER INFORMATION
History
Promoted in 1979 by Deepak Nitrite and C
K Mehta as a private limited company, Deepak Fertilisers became a public
company in 1982. It manufactures anhydrous liquid ammonia. The 272-tpd plant at
Taloja went on stream in Dec.'83. The plants are located in the well developed
industrial area at Taloja near Bombay. Consistent supply of crucial raw
material - Natural Gas - is assured through Deepak's own gas pipeline direct
from Bombay High gas fields.
Smartchem Technologies Ltd and Deepak Nitrochem Pty Ltd, Australia are
the subsidiaries of the company.
The company diversified into the manufacture of ammonium nitro-phosphate
(ANP) fertiliser (cap. : 2.3 lac tpa) and integrated into the manufacture of
concentrated nitric acid (33,000 tpa), ammonium nitrate (36,000 tpa) and dilute
nitric acid (200,000 tpa). It also set up a 100,000-tpa methanol project which
was part financed through a public issue of convertible debentures in Jan.'89.
DFL has a technical collaboration with Fish International Engineers, US and
Stamicarbon, the Netherlands. The Programme for retrofit Ammonia Plant was
completed by end March, 2000.
Keeping in mind the constraint of gas supply, the company had invested in
a port-based storage facility for imported ammonia. The Company is also
exploring the possibility of increasing the number of sources of Ammonia
including the option of setting up a gas-based Ammonia plant abroad and also
studying oppportunities for broad-basing industrial chemical products through
forward integration. The company has implemented the debottlenecking of Ammonia
Plant but the additional gas supply was never received.
The expansion of NP fertilizer plant to 3,00,000 tons p.a and LDAN plant
to 1,00,000 tons p.a was taken up in 2001-02. The engineering work for AN Melt
capacity was completed and the above the plants were commissioned during
2002-03 there by enhancing the capacity by 90,000 tpa. Technology for the new
plant has been supplied by Grande Praoisse,France.
The company has increased the installed capacity of CNA by 23100 MT
during 2004-05 and with this expansion the total installed capacity of CNA has
increased to 79200 MT.
Fixed Assets
Ø Land
freehold
Ø Land
leasehold
Ø Buildings
Ø Plant
& machinery
Ø Electrical
installation and fittings
Ø Furniture
& fixtures
Ø Office
equipments
Ø Vehicles
Its’ products range includes :-
·
Ammonia
·
Methanol
·
Dulute Nitric Acid (DBA)
·
Concentrated Nitric Acid (CAN)
·
Liquid Carbon-di-oxide (CO2)
·
LDAN
·
Nitro Phosphate (NP)
·
MOP
·
DAP
·
Ammonium Sulphate
·
Mixtures
·
Urea Seeds
·
Sulphur
·
Micronutrients
·
SSF
·
Traded Bulk Fertilisers
·
Traded Speciality Agro Products
FINANCIAL RESULTS
Sales (including trading operations
of Rs.2087.100 millions) increased to Rs.5954.900 millions as against
Rs.5009.500 millions (including trading operations of Rs.1103.600 millions) for
the previous year. PBT for the year under review is Rs.1117.000 millions
against Rs.1124.600 millions in the previous year. Net Profit for the current
year is Rs. 797.700 millions as compared to Rs. 797.500 millions in the
previous year.
SUBSIDIARY COMPANIES
As mentioned in the last year's
Annual Report, the company has two subsidiaries viz. Smartchem Technologies
Limited and Deepak Nitrochem Pty. Limited.
A statement pursuant to Section 212
of the Companies Act, 1956 in respect of these subsidiaries is appended to the
Balance Sheet. In terms of approval granted by the Central Government under
Section 212(8) of the Companies Act, 1956, the annual accounts and other
reports specified in Section 212(1) in respect of the subsidiary companies have
not been attached to the Balance Sheet. The Company will make available these
documents /details to the investors of the Company and the subsidiary companies
upon request made in this regard to the Company.
In accordance with the requirements
of Accounting Standard AS-21 prescribed by the Institute of Chartered
Accountants of India, the Consolidated Financial Statements of the Company and
its subsidiaries is annexed to this Annual Report.
The Agri Business :
The government policies in the farm and fertiliser sector are
expected to continue. Through some of these may be argued to have a
sub-optimising impact on economics and efficiencies, they are a reality in the
Indian political economy.
Given the scenario, the company is consciously focusing on
leveraging its strengths in the fertilisers sector. Capitalising on its strong
techno-commercial skills, the company is moving away from merely manufacturing
and selling fertiliser into an integrated nutrient management mode, with the
farmer-customers productivity and profitability enhancement as its focus. The
aim is to provide a complete basket of agri-market solutions and
techno-commercial services to ensure higher yields and better farm economics.
With the stress on offering integrates or total nutrients
management, the company as a pilot project has set up two centres in Maharashra
that offer more than just fertilisers. The centres have been branded “Mahadhan
Saarrthie”. Each “Mahadhan Saarrthie” centre aims to provide total
agri-services and solutions through soil, water and petiole testing facilities
and crop nutritional management, providing the farmer marketing linkage for his
farm produce. The initial crops selected for this purpose are potato, tomato
and grapes.
The company has a world – class marketing network, and brands-
Mahadhan and Bhoodhan – that are ranked very high in terms of brand recognition
in their respective markets. With this base, the company is now leveraging
markets. With this base, the company is now leveraging its strengths in marketing, and outsourcing soluble
fertilisers, micronutrients and secondary nutrients that it does not currently
manufacture. Brand extensions with potash, sulphur, and phosphorous have been
introduced in the last few years with good success.
The Chemicals Business :
Industrial Chemicals
The company is among the leaders in terms of reputation, quality
and marketshare in its markets. Its current basket of chemicals. Viz. methanol,
various grades of nitric acid, hydrogen and carbon dioxide cater to the bulk
markets in pharmaceuticals, agri-chemicals, defence, paints, and other markets.
The future will increasingly demand product customisation, bundled
with techno-commercial services to drive marketshare, margins and profitability
upwards. The company will leverage its strong technology and marketing
strengths to create and drive customer-value and profitability.
The first round of diversification saw the company take up the Iso
Propyl Alcohol project in India, more details on which are available later in
this report.
The company is now doing preliminary work to identify products and
markets in the speciality / high performance chemicals segment for the future.
In the existing range of products, the company is already putting
in place the necessary frame work to achieve greater levels of competitive
advantage by offering customised grades, customer-specific packaging and
value-added technical service across key product categories.
The year under review
Financial Analysis
The company has continued the momentum of steady performance,
despite feedstock constraints and the impact of the Mumbai floods,
demonstrating the initial success of its customer-led, techno commercial skills
driven direction for the year 2005-06. Total revenues for the year stood at Rs.
5954.900 million against Rs. 5009.500 millons in the financial year 2004-05.
Profit before tax stood at Rs. 1117.000 million in year 06 against Rs. 1124.600
millions in year 05. Net profit for the year year 06 stood at Rs. 797.700
millions against Rs. 797.500 millions year 05. Earnings per share stood at Rs.
90.400 in FY06 same as in year 05.
The company’s financial position continues to remain strong. The
debt cost stood at 6.43% for year 06. During the year company raised a US $ 20
million ECB loan towards the capital expenditure for the ISO Propyl Alcohol
project. A further sanction for a Rs. 734.600 millions loan, was obtained for
the specially retailing project Ishanya.
This has increased the net out standing debts in the company books
for year 06 to Rs. 1760.800 millions against Rs. 908.500 millions in year 05.
the interest cost in year 06 is Rs. 56.500 millions against Rs. 86.400 millions
in the previous financial year. Interest for funds raised for project / capex
item has been capitalised.
The debts-equity ratio stood at 0.39 in year 06 against 0.27 in
year 05, while the debtors turnover ratio improved to 77.400 millions in year
06 from 67.600 in year 05. the current ratio at 2.35 continues to remain
healthy.
CURRENT AND FUTURE PROJECTS
The Iso-Propyl Aicdhol
The commissioning of Iso Propyl
Alcohol (IPA) plant was delayed due to the unprecedented floods. The plant is
expected to go on stream in the first half of 2006-07. the company is well
poised to leverage its marketing skills and has already received an excellent
response from domestic and international customers for the proposed marketing
of its IPA. The international price of IPA is currently ruling quite firm.
Retailing / Value Added Real Estate
The construction of the Ishanya, the
Design Centre and Specialty Mall for interiors and exteriors is progressing in
full swing. Ishanya is carefully positioned in the retailing sector and is
expected to open to customers around mid-year 07. during the year under review,
Ishanya has already leased out over 50% of its
leasable space to Indian and international brands in the interiors and
exteriors market. As on the date of this report, this figure has crossed the
60% mark. Ishanya’s campus-like, design, spread over 10 acres will, besides
having retail spaces, offer exhibition halls an amphitheatre, a design studio,
a training and development center, art galleries, business center, ample
parking etc. A restaurant and food courts will also be available.
Ammonium Nitrate
The land for the new 300000 MTPA
Ammonium Nitrate plant at Paradip. Orissa, has been allotted and site
preparation work will begin shortly. Key plant, equipment and technology
selection for ammonium Nitrate plant has been done and basic/ detailed
engineering contracts have been awarded. The project is due for completion in a
two-year fast –track timeframe.
Project is progressing well and is
expected to go on stream in the fourth
The commissioning of the Automatic
Bagging Plant in NP and Ammonium Nitrate was completed. The facility of bagging
one MT bag for Ammonium Nitrate has also been successfully commissioned. The
installation and commissioning of the 9MW Captive Cogen Plant was completed
during the year under review. This will provide reliable quality power and
steam at a reasonable cost. Its full advantages will be evident once LNG is
available.
The company has taken concrete steps
during the year to implement the Speciality Design Centre and Mall. The civil
construction contract has already been awarded. Site construction work has
commenced and the target date for civil completion is early 2006. The marketing
of space at the Mall has already commenced and encouraging responses have been
received from all target segments both in India and globally.
Deepak Fertilisers And Petrochemicals
Corporation Ltd. topline grows 18 % in 2005-06
• Company announces
dividend of 30 % • Net Sales for
2005-06 (FY06) at Rs. 5628.6 millions, riding on strong growth in price
realisations across key products • Net Profit at Rs. 797.7 millions • EPS stays steady at Rs. 9.04 • IPA project ready for commissioning in the first quarter of 2006-07 May 18, 2006: Deepak Fertilisers And Petrochemicals Corporation Ltd.
(DFPCL) showed strong 18 % growth in its Net Sales to Rs. 5628.6 millions for
the year ended 2005-06 (FY06) from Rs. 4781.7 millions in 2004-05 (FY05). The
Company announced a dividend of 30 % for the year. The sales growth came on
back of higher sales volumes in fertilisers and industrial chemicals. The total
fertiliser sales volumes for FY 06 increased to 2,65,200 from 1,86,700 MT in
FY05, while Industrial Chemicals grew to 2,50,400 MT in FY06 from 2,39,700 MT
in FY05. DFPCL’s strategy of focusing on total nutrients management in order to
provide the farmer with soil and plant specific needs calls for outsourcing
soluble fertilisers, micronutrients and secondary nutrients that it does not
currently manufacture. This focus has resulted in a higher volume of outsourced
fertilisers, which for the year under review was up by 84 % in FY06 over FY05.
In the Industrial Chemicals segment, sales volumes of outsourced products rose
by 57 % in FY06 against FY05 on account of a lower production necessitated by
the flash floods in Western Maharastra toward the end of July 2005. The
outsourcing was necessary in order to maintain marketshare and customer
loyalty.
Sales volumes for Ammonium Nitrate stood at
1,02,100 MT during the year under review comparable to the previous financial
year (FY05). The lower production due to the flash floods in end-July 2005 was
compensated by outsourcing 4,000 MT of Ammonium Nitrate.
The Company’s strong brand and marketing
strengths are enabling it gain higher price realizations across its key
products, especially Ammonium Nitrate and Nitric Acid. The GAIL pipeline from
Dahej to Uran is expected to be completed around February 2007. This will
provide the Company’s Taloja plant with sufficient quantities of LNG and ensure
higher capacity utilisation and contribution. Profit Before Tax stood at Rs.
1117.0 millions in FY06 against Rs. 1124.6 millions in FY05. Net Profit for the
year FY06 stood at Rs. 797.7 millions against Rs. 797.5 millions in FY05.
Earnings Per Share was steady at Rs. 9.04 in FY06, the same level as FY05.
Sales for the fourth quarter of FY06 stood at Rs. 1701.6 millions up from Rs
1447.4 millions for the corresponding quarter in the previous financial year.
Net Profits for the period QIV 2005- 06 stood at Rs 268.3 millions against Rs.
276.9 millions for the corresponding period in the previous financial year
(2004-05). Profits did not move in line with sales largely due to the rise in
outsourced products, which were necessitated by lower production and the need
to maintain marketshare and customer loyalty.
The Company is confident of its demonstrated
ability to grow marketshare, manage its production costs efficiently and gradually
realise price hikes, all of which should stand it in good stead in the future.
DFPCL has made a strong foray into
agri-services, offering integrated or total nutrients management to the farmer.
The Company has set up two centres in Maharashtra that offer more than just
fertilisers. The centres have been branded “Mahadhan Saarrthie”. Each “Mahadhan
Saarthie” centre aims to provide total agri-services and solutions through
soil, water, plant testing facilities and crop nutritional management, utilising
DFPCL’s range of plant nutrient products and, ultimately, providing the farmer
marketing linkage for his farm produce with product buy back and retailing. The
crops selected for this purpose are potato, tomato and grapes. Two pilot
projects have been undertaken so far and over 1,000 farmers in Maharashtra and
3,000 acres of land brought under the “Mahadhan Saarrthie” umbrella.
This represents a major strategic thrust for
DFPCL. The Company’s Mahadhan and Bhoodhan brands are amongst the leaders in
terms of brand recognition within their geographical and customer markets. With
this base, DFPCL is now leveraging its strengths in marketing, and brand
extensions with enhanced potash, sulphur, and phosphorous have been introduced
in the last few years with good success.
The Company’s Iso-Propyl Alcohol project is
slated to go online in the first quarter of 2006- 07 and current IPA prices
show a firm trend. Ishanya, India’s first Design Centre and Mall, had leased
out over 60 percent of its 5,50,000 sq. feet leasable area as of date. DFPCL’s
300,000 MT Ammonium Nitrate project at Paradip in Orissa is going ahead as
planned. The Nitric Acid plant for the project has arrived at the plant site
and is ready for erection. The detailed engineering design contract and key
technology supply contracts have been signed.
DEEPAK
FERTILIZERS AND PETROCHEMICALS: Deepak Fertilisers And Petrochemicals Plans
Major Investment In Chemicals Riding on Mining and Construction Sector Growth -
Expanding its thrust into the Chemicals Sector - Major expansion in Ammonium
Nitrate with an investment of about Rs..4000 millions (about US $ 90 million)
Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL) announced a
major expansion plan in the Chemicals Sector to set up a 3,00,000 Metric Tonnes
Per Annum green-field complex for Nitric Acid and Ammonium Nitrate in Eastern
India. The project will be set up with an investment of about Rs. 4000 millions
(approx. US $ 90 million) and will primarily be focussed on the needs of the
mining and construction sectors in the domestic and global markets. The new
plant is expected to be set up in about 24 months time. The new project in
Eastern India will augment DFPCL's geographical reach cost-effectively across
the country and strengthen its position as the market leader. The DFPCL brand
Optimex is India's leading brand in the AN market, where the Company has
already sold more than a million tonnes of the product over the last decade or
so.Ammonium Nitrate is used extensively in the mining and construction sectors,
all of which are in a strong growth phase that is expected to continue as the
Indian economy strengthens. Domestic demand is rising at about 5 % annually
while demand in the international markets is also growing fast.
Deepak Fertilisers And Petrochemicals plans
major investment in chemicals riding on Mining and Construction sector growth
• Expanding its thrust
into the Chemicals Sector
• Major expansion in
Ammonium Nitrate with an investment of about Rs..4000 millions (about US $ 90
million)
Mumbai, October 21, 2005:
Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL) today announced
a major expansion plan in the Chemicals Sector to set up a 3,00,000 Metric
Tonnes Per Annum green-field complex for Nitric Acid and Ammonium Nitrate in
Eastern India. The project will be set up with an investment of about Rs. 4000
millionss (approx. US $ 90 million) and will primarily be focussed on the needs
of the mining and construction sectors in the domestic and global markets. The
new plant is expected to be set up in about 24 months time.
The new project in Eastern India will augment DFPCL’s
geographical reach cost-effectively across the country and strengthen its
position as the market leader. The DFPCL brand Optimex is India’s leading brand
in the AN market, where the Company has already sold more than a million tonnes
of the product over the last decade or so.
Ammonium Nitrate is used extensively in the mining and
construction sectors, all of which are in a strong growth phase that is expected
to continue as the Indian economy strengthens. Domestic demand is rising at
about 5 % annually while demand in the international markets is also growing
fast.
The Company already has a prilled Ammonium Nitrate facility
with a capacity of 90,000 tonnes at Taloja, near Mumbai, in Western India. The
Company’s 100 % subsidiary, Smartchem Technologies Ltd., also has two plants
with a total capacity of 50,000 tonnes in Andhra Pradesh in Eastern India and
in Gujarat in the west of the country.
“DFPCL has over two decades of proven strengths in the field
and is known for its strong technology and project management skills. The new
capacity expansion will propel the Company into a new high growth phase. Their
strong techno-commercial skills, coupled with their new capacities, will
continue to be at the forefront of customer-led, technology-driven strategy. We
are focussed on providing optimal world class blasting solutions to their
customers,” Mr. S. C. Mehta, the Company’s Managing Director said.
The Company has over the last two
decades acquired and absorbed the world’s leading technologies involved for the
products – Stamicarbon, Grande Paroisse and Norsk Hydro (which is being used at
Smartchem Technologies). The Company’s current AN operations benchmark very
favourably with world standards across all parameters for the manufacturing and
handling of the product.
The Company registered strong growth in
sales and profits for the six-month period ended September 30, 2005. The
Company saw a 16 % growth in sales from Rs.. 2160 millions to Rs.. 2490
millions. Profit Before Tax jumped by 21 % from Rs. 445.0 millions to Rs. 54
millions, while Profit After Tax increased from Rs. 290 millions to Rs. 370
millions, a jump of 27 %. The Company’s Chemicals business saw a 15 % growth
during the first half of 2005-06, while the Agri-services business, including
Fertilisers, registered a growth of 8%.
Press Release
Deepak Fertilisers and Petrochemicals
Corporation Ltd. Topline grown 18% in 2005-06
- Company announce dividend of 30%
- Net Sales for 2005-06 at Rs. 5628.600 millions, riding on strong
growth in price realisations across key products.
- Net Profit at Rs. 797.700 million
- EPS stays steady at Rs. 9.04
- IPA project ready for commissioning in the first quarter of 2006-07
May 18, 2006 : Deepak Fertilisers and
Petrochemicals Corporation Limited showed
strong 18% growth in its Net Sales to Rs. 5628.600 millions for the year
ended 2005-06 from Rs. 4781.700 millions in 2004-05. the company announced a
dividend of 30% for the year.
The sales growth came on back of higher sales volumes in
fertilisers and industrial chemicals. The total fertiliser sales volumes for FY
06 increased to 265200 from 186700 MT in FY05, while Industrial Chemicals grew
to 250400 MT in FY06 from 239700 MT in FY05.
DFPCL’s strategy of foucsing on total
nutrients management in order to provide the farmer with soil and plant
specific needs calls for outsourcing soluble fertilisers, micronutrients and
secondary nutrients that its does not currently manufacture. This focus has
resulted in a higher volume of outsourced fertilisers, which for the year under
review was up by 84% in FY06 over FY05.
In the industrial Chemicals segment,
sales volumes of outsourced products rose by 57% in FY06 against FY05 on account
of a lower production necessitated by the flash floods in Western
Maharashtra toward the end of July
2005. The outsourcing was necessary in order to maintain market share and
customer loyalty.
Sales volumes for Ammonium Nitrate
stood at 102100 MT during the year under review comparable to the previous
financial year (FY05). The lower production due to the flash floods in end July
2005 was compensated by outsourcing 4000 MT of Ammonium Nitrate.
The company strong brand and marketing
strengths are enabling it gain higher price realizations across its key
products, especially Ammonium Nitrate and Nitric Acid.
The GAIL pipeline from Dahej to Uran is
expected to be complete around February 2007. This will provide the company’s
Taloja plant with sufficient quantities of LNG and ensure higher capacity
utilisation and contribution.
Profit before tax stood at Rs. 1117
million in FY06 against Rs. 1124.600 million in FY05. Net Profit for the year
FY06 stood at Rs. 797.700 millions against Rs. 797.500 millions in FY05.
Earnings per share was steady at Rs. 90.400 in FY06 the same level as FY05.
Sales for the fourth quarter of FY06
stood at Rs. 1701.600 millions up from Rs. 1447.400 millions for the
corresponding quarter in the previous financial year. Net profit for the
periods QIV 2005-06 stood at Rs. 268.300 millions against Rs. 276.900 millions
for the corresponding period in the previous financial year (2004-05).
Profits did not move in line with sales
largely due to the rise in outsourced products, which were necessitated by
lower production and the need to maintain marketshare and customer loyalty.
The company is confident of its demonstrated ability to grow marketshare,
manage its production costs efficiently and gradually realise price hikes, all
of which should stand it in good stead in the future.
DFPCL has made a strong foray into
agri-services, offering integrated or total nutrients management to the farmer.
The company has set up two centres in Maharshtra that offer more than just
fertilisers. The centres have been branded “Mahadhan Saarrthie” . Each “Mahadhan Saarrthie” centre aims to provide
total agri-services and solutions through soil, water plant testing facilities
and crop nutritional managements, utilising DFPCL’s range of plant nutrient
products and ultimately, providing the farmer marketing linkage for his farm
produce with product buy back and retailing. The crops selected for this
purpose are potato, tomato and grapes.two pilot projects have been undertaken
so far and over 1000 farmers in Maharashtra and 3000 acres of land brought
under the “Mahadhan Saarrthie” umbrella. This represents a major strategic
thrust for DFPCL.
The company Mahadhan and Bhoodhan
brands are amongst the leaders in terms of brand recognition within their
geographical and customer markets. With this base, DFPCL is now leveraging its
strengths in marketing, and brand extensions with enhanced potash, sulphur, and
phosphorous have been introduced in the last few years with good success.
The company’s Iso-Propyl Alcohol project
is slated to go online in the first quarter of 2006-07 and current IPA prices
show a firm trend. Ishanya, India’s first Design Centre and Mall, had leased
out over 60 percent of its 550000 sq. feet leasable area as of date.
DFPCL’s 300000 MT Ammonium Nitrate
project at Paradip in Orissa is going ahead as planned. The Nitric Acid plant
for the project has arrived at the plant site and is ready for erection. The
detailed engineering design contract and key technology supply contracts have
been signed.
For further details contact :
Vivek Y. Kelkar
Vice – President – Communication
Tel : 91-20-26684916 / 91-9820210514
Sonia Kulkarni / Rohan Sukthanka
Adfactors PR
Tel : 91-9820401304
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
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 45.92 |
|
UK
Pound |
1 |
Rs. 85.11 |
|
Euro |
1 |
Rs. 58.08 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |