MIRA
INFORM REPORT
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Report Date : |
14.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
NAVIN FLUORINE INTERNATIONAL LIMITED |
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Registered Office : |
Kalpataru Point, 1st Floor, Kamani Marg, Sion –
East, Mumbai – 400022, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
25.06.1998 |
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Com. Reg. No.: |
11-115499 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP14428B |
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PAN No.: [Permanent
Account No.] |
AABCP0464B |
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Legal Form : |
A public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Selling of Chemicals. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 7426000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is the successor of Navin Fluorine, part of Mafatlal Industries Limited, sick company. After demerger of Chemical Division from Mafatlal Industries Limited, the subject has now an independent identity. The company has performed extremely well in its initial year contrary to downfall of Mafatlal Group in recent past. Future sounds promising in view of good demand for company’s products. Trade relations are fair. Payments are correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. Mafatlal Group Mafatlal Group has been downsized due to mis management and family problems amongst brothers. They sold lot of assets to repay their liabilities. Arvind Mafatlal Group, in general is not doing well. Subject is an exceptional company in the group. |
LOCATIONS
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Registered Office : |
Kalpataru Point, 1st Floor, Kamani Marg, Sion
–East, Mumbai – 400022, |
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Tel. No.: |
91-22-24040404 / 2404 3300 |
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Fax No.: |
91-22-24014077 |
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E-Mail : |
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Website : |
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Corporate Office : |
Mafatlal House, Backbay Reclamation, Mumbai 400 020. |
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Tel. No.: |
91-22-56357611/22026944 |
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Fax No.: |
91-22-56357633 |
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Factory 1 : |
Ř
P. O. Bhestan, Udhana – E-mail : surat@navinfluorine.com |
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Factory 2 : |
Ř
New Industrial Area, E-mail : dewas@navinfluorine.com |
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Sales Office: |
Ř
35-C, Shivaji Marg, E-mail : delhi@navinfluorine.com Ř
Unit II, ES Patanwala Marg, Byculla, Behind
Jijamata Udyan, Mumbai – 400010, E-mail : mumbai@navinfluorine.com Ř
2, New E-mail : kolkata@navinfluorine.com Ř
C-26, Padi Industrial Estate, Mogppair East,
Chennai – 600050, Tamil E-mail : chennai@navinfluorine.com
Ř
P.O. Bhestan, Udhana – E-mail : bhestan@navinfluorine.com |
DIRECTORS
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Name : |
Mr. Hrishikesh A. Mafatlal |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Ajindra Kumar Puri |
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Designation : |
Director (w.e.f. 21.01.2003) |
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Name : |
Mr. T. M.M. Nambiar |
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Designation : |
Director (w.e.f. 03.03.2003) |
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Name : |
Mr. Pradip N. Kapadia |
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Designation : |
Director |
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Date of Birth : |
55 years |
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Date of Appointment : |
21.01.2003 |
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Brief resume |
B.A., LL.B. Experience of more than 29 years in legal field. He is a
Partner of Vigil Juris, Advocates and Solicitors, Mumbai. |
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Names of the Companies in which he holds Directorship / Committee Memberships : |
Director in:
Committee Membership:
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Name : |
Mr. Sunil S. Lalbhai |
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Designation : |
Director (w.e.f. 03.03.2003) |
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Name : |
Mr. Vishal P. Mafatlal |
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Designation : |
Director |
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Qualification |
B. Sc. (Economics Graduate) |
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Date of Appointment |
21.01.2003 |
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Other Directorship |
Director in :- ·
Mafatlal Service
Limited ·
Mafatlal Burlington
Industries Limited ·
Sunanda Industries
Limited ·
Tropical Clothing
Company Private Limited ·
Cebon Apparel Private
Limited ·
Eyeindia.Com Private Limited ·
Suvin Technologies
Limited ·
Suvin Technologies
Pte. Limited, ·
Intouch Communication
Pte. Limited ·
Mafatlal Fabrics
Private Limited ·
Silvia Apparel Limited ·
Sarvamangala Holdings
Private Limited ·
Eyeglobal technologies
Private Limited ·
Marigold International
Private Limited ·
Myrtle Chemtex Trading
Private Limited ·
Mayflower Chemtex
Trading Private Limited ·
Sulakshana Securities
Limited |
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Name : |
Mr. Atul Kumar Srivastava |
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Designation : |
Finance Director |
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Qualification |
B. Sc (Hons) FCA |
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Date of Appointment |
21.01.2003 |
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Other Directorships |
Director in :- ·
Silvia apparel Limited ·
Sulakshana
Securities Limited |
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Name : |
Mr. S.M. Kulkarni |
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Designation : |
Director |
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Date of Birth : |
68 years |
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Date of Appointment : |
19.10.2006 |
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Brief resume |
B.E., Fellow Institute of Management - U.K., Fellow Indian Institute
of Engineers and Fellow Institute of Directors, U.K. He is currently a Consultant and acts as a Corporate and Business
Advisor to several Indian and International Corporate entities and has vast expertise in
the areas of International Business, |
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Names of the Companies in which he holds Directorship / Committee Memberships : |
Director in:
Committee Membership: Audit Committee:
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Name : |
Mr. R. Sankaran (w.e.f. 30.03.2007) |
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Designation : |
Director |
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Date of Birth : |
61 years |
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Date of Appointment : |
30.03.2007 |
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Brief resume |
Masters in Economics
and Diploma in Business Management and Financial Management, He is an eminent consultant in the field of Financial Services
Industry over past 3 decades and has held the position as Head of the
Merchant Banking for Standard Chartered Bank and as a Senior Partner of
Arthur Andersen. |
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Names of the Companies in which he holds Directorship / Committee Memberships : |
Director in:
Committee Membership:
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KEY EXECUTIVES
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Name : |
Mr. N.B. Mankad |
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Designation : |
Company Secretary |
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Name : |
Mr. D.S.R. Raju |
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Designation : |
General Manager – |
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Name : |
Mr. S. U. Khan |
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Designation : |
Vice President (Personnel) |
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Name : |
Mr. Partho Roychowdhury |
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Designation : |
Senior Vice President – Finance & Accounts |
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Name : |
Dr. N. C. Mathur |
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Designation : |
General Manager – Business Development |
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Name : |
Mr. P.N.K. Vishwanathan |
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Designation : |
General Manager - Exports |
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Name : |
Mr. Sunil Tandon |
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Designation : |
General Manager – Marketing |
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Name : |
Mr. R. Kumar |
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Designation : |
Senior General Manager - HR |
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Name : |
Mr. Sanjay Mittal |
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Designation : |
Head of I.T. |
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Name : |
Mr. Ajay Raverkar |
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Designation : |
Factory Manager – Dewas |
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Name : |
Mr. L. N. Ravi |
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Designation : |
Senior Manager – R & D, QA |
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Name : |
Mr. Joy Aloysius |
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Designation : |
Senior Manager – Commercial |
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Name : |
Mr. Nitin Kulkarni |
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Designation : |
Senior Manager – Business Development |
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Name : |
Mr. Makarand Pande |
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Designation : |
Product Manager |
SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters Holding |
3753100 |
37.16 |
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Mutual Funds & Axis |
1200075 |
11.88 |
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Banks, Financial Institutions, Insurance Companies, Central / State
Govt Institutions |
486632 |
4.82 |
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FIIS (Foreign Institutional Investors) |
490401 |
4.86 |
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Private Corporate Bodies |
958480 |
9.49 |
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Indian Public |
3186959 |
31.55 |
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NRIs / OCBs |
24252 |
0.24 |
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Any Other (please specify) |
0 |
0 |
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Total |
10099899 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Selling of Chemicals. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Organic Chemicals |
Tons |
9031 |
1354 |
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Synthefic Cryolite, aluminium flooride and fluorocarbon gases |
Tons |
28300 |
9680 |
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Hydrofluoric Acid and oleum |
Tons |
31255 |
19645 |
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Sulphuric acid and oleum |
Tons |
39600 |
34053 |
GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
C. C. Choksi & Company Chartered Accountants |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
35,000,000 |
Equity Shares |
Rs. 10/-each |
Rs. 350.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,00,99,889 |
Equity Shares |
Rs. 10/-each |
Rs. 100.999
Millions |
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Less : Calls in arrears |
|
Rs. 0.049
Millions |
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Total |
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Rs. 100.950 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
100.950 |
100.883 |
75.781 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1755.778 |
1641.751 |
1417.960 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1856.728 |
1742.634 |
1493.741 |
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LOAN FUNDS |
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1] Secured Loans |
924.745 |
880.660 |
693.443 |
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2] Unsecured Loans |
96.047 |
15.800 |
7.449 |
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TOTAL BORROWING |
1020.792 |
896.460 |
700.892 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
2877.520 |
2639.094 |
2194.633 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1154.778 |
1096.488 |
950.349 |
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Capital work-in-progress |
570.433 |
320.066 |
229.724 |
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INVESTMENT |
174.324 |
226.231 |
226.234 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
26.400 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
594.206
|
572.068 |
403.505 |
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Sundry Debtors |
457.903
|
414.982 |
438.845 |
|
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Cash & Bank Balances |
458.852
|
607.590 |
543.798 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
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Loans & Advances |
561.292
|
421.074 |
416.981 |
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Total
Current Assets |
2072.253
|
2015.714 |
1803.129 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
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Current Liabilities |
1008.429
|
971.885 |
911.975 |
|
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Provisions |
85.839
|
47.520 |
129.228 |
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Total
Current Liabilities |
1094.268
|
1019.405 |
1041.203 |
|
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Net Current Assets |
977.985
|
996.309 |
761.926 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2877.520 |
2639.094 |
2194.633 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2604.917 |
2346.941 |
2490.024 |
|
|
Other Income |
194.394 |
65.815 |
|
|
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Total Income |
2799.311 |
2412.756 |
2490.024 |
|
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|
|
|
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Profit/(Loss) Before Tax |
265.455 |
179.404 |
203.004 |
|
|
Provision for Taxation |
139.471 |
93.882 |
178.771 |
|
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Profit/(Loss) After Tax |
125.984 |
85.522 |
24.233 |
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Earnings in Foreign Currency : |
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Export Earnings |
915.909 |
916.680 |
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Commission Earnings |
0.000 |
0.000 |
|
|
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Other Earnings |
19.860 |
52.661 |
|
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Total Earnings |
935.769 |
969.341 |
915.597 |
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Imports : |
|
|
|
|
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|
Raw Materials |
707.968 |
714.465 |
|
|
|
Stores & Spares |
0.411 |
12.024 |
|
|
|
Capital Goods |
41.383 |
51.082 |
|
|
|
Others |
0.000 |
0.000 |
|
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Total Imports |
749.762 |
777.571 |
550.722 |
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Expenditures : |
|
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Purchase of trading goods |
39.244 |
66.238 |
|
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Manufacturing and other expenses |
2296.632 |
1981.639 |
|
|
|
Excise duty |
5.392 |
16.607 |
|
|
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Depreciation |
88.297 |
75.030 |
|
|
|
Depreciation on immovable property |
0.003 |
0.003 |
|
|
|
Interest |
78.308 |
81.778 |
|
|
Total Expenditure |
2507.876 |
2221.295 |
2068.942 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 |
|
Type |
|
|
1st
Qtr |
|
Sales Turnover |
|
|
618.000 |
|
Other Income |
|
|
08.300 |
|
Total Income |
|
|
626.300 |
|
Total Expenditure |
|
|
581.700 |
|
Operating Profit |
|
|
44.600 |
|
Interest |
|
|
20.500 |
|
Gross Profit |
|
|
24.100 |
|
Depreciation |
|
|
24.300 |
|
Tax |
|
|
00.600 |
|
Reported PAT |
|
|
[00.800] |
200706
Quarter 1 –
Expenditure Includes (Increase)/Decrease in stock in Trade
Rs 23.942 million Consumption of Raw Materials / Rs 306.939 million Purchase of
trading goods Staff Cost Rs 50.772 million Power & Fuel Rs 45.320 million
Other expenditure Rs 104.049 million Tax Includes Provision for Current Tax Rs
(0.051) million Deferred Tax Rs (0.017) million Fringe Benefit Tax Rs 0.680
million Extraordinary item indicates Exceptional Items - Amount under wage
settlement (refer note 1) EPS is Basic
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.50 |
0.49 |
0.49 |
|
Long
Term Debt-Equity Ratio |
0.39 |
0.42 |
0.43 |
|
Current
Ratio |
1.49 |
1.55 |
1.64 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.64 |
1.66 |
1.96 |
|
Inventory |
4.82 |
5.19 |
6.32 |
|
Debtors |
6.43 |
5.93 |
6.39 |
|
Interest
Cover Ratio |
4.77 |
3.19 |
4.74 |
|
Operating
Profit Margin(%) |
16.44 |
13.27 |
16.40 |
|
Profit
Before Interest And Tax Margin(%) |
13.29 |
10.31 |
13.72 |
|
Cash
Profit Margin(%) |
8.14 |
6.34 |
3.97 |
|
Adjusted
Net Profit Margin(%) |
5.00 |
3.38 |
1.29 |
|
Return
On Capital Employed(%) |
13.81 |
10.84 |
16.15 |
|
Return
On Net Worth(%) |
7.80 |
5.28 |
2.27 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.349.80/- |
|
Low |
Rs.336.20/- |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
- Land
- Buildings
- Plant and machinery
- Furniture
- Fittings and office equipment
- Vehicles
History
Pursuant to the Rehabilitation Scheme of The Mafatlal Industries Limited, the Chemicals Division of the company viz., Navin Fluorine Industries (NFI), Bhestan, Gujarat and Navin Chemical Enterprises (NCE), Dewas, Madhya Pradesh have been demerged and vested in subject company with effect form 1st March, 2002 as a going concern along with assets and liabilities.
MIL was executing a project in
Persuant to MIL’s SS, Income Tax Department to grant exemption from compliance of conditions contained in Section 2 (19AA) of the Income Tax Act, 1961, with regard to demerger of Chemical Division. Accordingly, as per the provisions of Section 72A of the Income Tax Act, 1961, unabsorbed depreciation, aggregating to Rs. 327.903 millions, retable to the Chemical Division of MIL has been set off against taxable income of the company and the balance unabsorbed depreciation, aggregating to Rs. 83.365 millions, was carried forward for the purpose of Income Tax. Consequently, there was no taxable income for the period. Deferred tax asset had been recongnized in respect of ubabsorbed depreciation carried forward. The company, based on projections, expected sufficient future taxable income to utilize this deferred tax assets.
During the period from 27th August, 1997 to 15th
September, 1997, the workers of company had been on an illegal and unjustified
strike in contravention of the Industrial Disputes Act. The Labour Commissioner
of
Investments:
The Company has a fully owned subsidiary called Sulakshana Securities Limited
(SSL), the special purpose vehicle created to address the dues of the
term-lenders of Mafatlal Industries Limited (MIL).
The Company continues to hold 49.99% of the equity share capital of Mafatlal
Denim Limited (MDL). With effect from 1st April 2005, MDL ceased to be a joint venture
and became an associate of the Company. The financial of MDL have been dealt
with in the Profit and Loss Account and Balance Sheet as appropriate for an
associate company.
During the year under review, MDL bought back 25% of its equity shares. The
Company sold 59,15,690 equity shares of MDL at a price of Rs. 14.16 per share
as against the acquisition cost of Rs. 8.75 each. This resulted in a long-term
capital gain of Rs. 32.009 Millions, which has been appropriately considered
under other income. Following the buyback, there is no dilution in the holding
of the Company.
The Company holds 16% of the equity share capital of Cebon Apparel Private
Limited (CAPL).
During the year under review, CAPL bought back 14% of its equity shares. The
Company sold 78,400 equity shares of CAPL at a price of Rs. 76 per share as
against an acquisition cost of Rs. 1.88 each. This resulted in a long-term
capital gain of Rs, 581.100 Millions, which has been appropriately considered
under other income.
The Company and its wholly owned subsidiary SSL together continue to hold 49%
of the equity share capital (7.120 Millions shares) of Molex Mafatlal Micron
(P) Limited (MMMPL), Despite a 49% holding, the Company neither has any
strategic interest nor influence on the day-to-day running of MMMPL. It is in
the process of divesting these shares soon. The results of MMMPL have not been
consolidated and reported due to their non-availability,
Borrowings:
The product and market profiles of the Company have undergone further change
during the year migrating deeper into the speciality and bulk fluorides, which
are more working capital intensive. The pricing volatilities of some of the
inputs continue to remain critical, necessitating the Company to carry large
stocks of these products at certain points in time to beat the price peaks. To
augment the emerging working capital needs the Company increased its working
capital facilities to Rs, 350 Millions (fund based) and Rs. 320 Millions
(non-fund based). The Company also inducted HDFC Bank Limited as an additional
working capital banker during the year.
During the previous year, the Company had tied up term loans worth Rs.
500 Millions from the Export Import Bank of
Following the tightening of money supply by the Reserve Bank of
Year
in retrospect:
The year 2006-07 was special as the carbon credit initiative
of the Company came to fruition. The Company went ahead with Ineos Fluor
Limited as the project participant for its Clean Development Mechanism
initiative and obtained registration for the project from the United Nations
Framework Convention for Climate Change (UNFCCC) on 30th March 2007. The start
date of the project is 1st May 2007. '
During the year ended 31st March 2007, the Company consolidated its national
and international position in the speciality fluorochemicals space, emerging as
a global player of standing in select products.
The Company's export realisations-and domestic margins remained under pressure
in the face of a steadily declining USD - from Rs, 44.61 to a dollar in April
2006 to Rs. 43.59 towards the end of the year under review. The Company,
however, reported a net gain of Rs. 1.207 Millions from foreign exchange
transactions, thanks to a favourable timing of foreign currency receipts and
payments.
The Company reported a 10% growth in sales despite a continuous decline in
demand for CFC In line with the Montreal Protocol, the proposed CFC phase-out
by 2010 has entered the last leg. During the year under review, the demand was
driven largely by the home market, setting the domestic market into a nearly 20%
growth. The bulk fluorides business grew by more than 66% and that of
refrigerant gases declined but specialities returned a healthy 22%
growth.
The cost of imported fluorspar, a critical raw material, escalated during the
year; this was aggravated by rising ocean freight. The costs of other strategic
input materials continued to remain adverse, pressurising margins. Supply of
some of the strategic raw materials continued to be critical. The Company
continues to strategically address these challenges by timing its buying
decisions, entering into long-to-medium-term supply contracts as well as
through strategic tie-ups.
The Company maintained a strong presence in the international market with
several global crop and life science customers. It consolidated its position by
entering into product development contracts with select customers. Due to a
weak dollar and decline of CFC demand, the Company closed its exports at a
marginally lower level than in the previous year.
The Company's R&D team created new value-added molecules based on customer
requirements. These molecules, currently at different stages of
commercialisation, are expected to report strong commercial success over the
coming years. The team also reported significant process improvements, reducing
the cost of production.
The Company's HF recovery and HCL quality improvement projects reduced
production cost and improved by-product quality with corresponding
value-addition. The modernisation of the sulphuric acid (H2SO4) plant,
benefited the Company with a reducing production cost and enhanced steam
generation for the other downstream plants.
SAP, one of the world's best ERP systems, continued to provide the Company with
a quality information platform,
The Company, as always, was a responsible corporate citizen, with effective
programmes in the area of health, safety and environment management,
Subsidiary:
Sulakshana Securities Limited (SSL), a wholly owned subsidiary, was created
under the Sanctioned Scheme of Rehabilitation (SS) of Mafatlal Industries
Limited (MIL) for the settlement of dues of term lenders of MIL The aggregate
value of the dues was Rs. 2572.100 Millions. Certain identified assets of equal
value on the date of de-merger were also transferred to SSL so that the debts
(thus transferred) can be repaid through asset sale.
The Company was further mandated to give guarantees to those term-lenders such
that shortfalls in their settlement amounts, if any, would be made good by the
Company, In return, it held the rights, as available to a guarantor under
sections 140 and 141 of the Indian Contracts Act, over the remaining assets of
SSL following the completion of settlements,
As on 1st April 2006, the term loans outstanding in the books of SSL aggregated
Rs. 467.800 Millions and as on 31st March 2007, the entire amount, except Rs.
6.300 Millions to one term lender, stood settled. All the guarantees provided
to such term lenders also stood cancelled as on 31st March 2007,
As per the exemption granted to the Company by the central government vide its
letter No, 47/323/2006-CL-III, dated 7th December 2006. The Company has not
attached copies of the balance sheet and profit and loss account, Directors'
Report and Auditors' Report of the subsidiary company for the financial year
ended 31st March 2007 and other documents required to be attached under Section
212(1) of the Companies Act to the balance sheet of the Company.
However, the other details as required by the central government while granting
the said exemption are disclosed in this report,
The annual accounts and related information of the subsidiary company are open
for inspection by any member/investor at the Registered Office of the Company
on working days between 2 pm and 4 pm and the Company will make available these
documents/details upon request by any member of the Company who may be.
Interested in obtaining the same.
Management
discussion and analysis:
Overview:
Navin Fluorine is an Indian pioneer in fluorine-based chemistry, the only
integrated fluorochemicals company in
The Company's manufacturing facilities in
* Refrigerant gases represented 49% of turnover in 2006-07
* Bulk fluorides represented 20% of turnover in 2006-07 and
* Speciality organofluorines represented 31% of turnover in 2006-07
It expects to derive significant income from its Clean Development Mechanism
(CDM) project registered by the Executive Board of United Nations Framework
Convention on Climate Change (UNFCCC), which is expected to translate into the
generation of 2.800 million CERs per annum, resulting in a large cash
inflow.
Highlights:
* The Company signed an agreement with
* A-two day workshop called 'Business Plan 2007-12' was organised, in which thought-provoking
presentations on Navin Fluorine's business strategies were made and future
growth strategies were finalised.
* The Company was named winner of the 'SAP ACE - Awards for Customer
Excellence' in the Business ROI category by SAP
Global overview:
The global fluorochemicals industry comprises fluorocarbons, inorganics,
specialities and fluoropolymers. These have been explained below for a better
understanding.
Fluorocarbons: These are primarily used in refrigeration and air conditioning,
polymer precursors, foam-blowing, aerosol propellants, solvent cleaning, etc.
These are also used as fire extinguish ants in aerospace and as LiPF6 in
high-energy-density lithium-ion batteries.
Inorganic chemicals: These are used mainly in aluminium
production, water fluoridation and chemical intermediates. Inorganic fluorine
gases such as sulphur hexafluoride, tungsten fluoride and nitrogen tri-fluoride
account for miniscule fluorochemical demand (in tonnage), but significant
realisations. Among commodity inorganic fluorochemicals, demand is dominated by
aluminium fluoride, heavily used in the manufacture of the metal. Growth will
be driven by a corresponding growth in global aluminium output, although
progressive technology is reducing the amount of aluminium fluoride needed per
ton of aluminium produced. Other commodity inorganic chemicals comprise
cryolite, fluorosilic acid and silicofluoride salts. Other applications include
the production of chemicals, materials, water fluorination, catalysis, ceramics
and metal finishing.
Specialities: fluorochemicals are used as intermediates in the production
of a variety of speciality products (including pharmaceutical and agricultural
chemicals). Over the years, demand for newer fluorinated speciality
pharmaceuticals (anti-psychotics. sedatives, hypnotics, muscle relaxants and
anti-inflammatory and appetite depressants) have grown - fluoroquinolones,
(used as antibiotics); and fluorouracil, (used to treat cancer). The
agrochemicals market provides .outlets for fluorochemial-based herbicides,
insecticides and fungicides. Fluorochemical insecticides inhibit insect chitin
formulation during larval moulting and are used to control pests: on fruit,
bean and cotton crops. Some fluorocarbon insecticides are also effective in
controlling fire ants.
Fluoropolymers: These are used widely in homes, buildings, automobiles,
aerospace applications and wherever a high performance is required. As a
result, the material serves competently in thermal, flame, electrical, chemical
and solvent resistance as well as low oxygen and moisture permeability. The
material is also used in non-stick frying pans; LAN cables represent a new
application.
Profile
Ř
Belongs to a reputed industrial house of Arvind
Mafatlal Group in
Ř
Largest integrated fluorochemicals complex in
Ř
Widest range of fluorochemicals in the bulk and
speciality segments
Ř
Developed more than 20 products on commercial scale
using indigenously built multipurpose plants and product technologies
Ř
Best business practice using SAP R/3
Ř
Accident free more than million man hours achieved
Ř
Quality system accredition with ISO 9002
Ř
Environment management system accredition with ISO
14001
Ř
World class safety standards – 5 star rating by
British Safety Council in 1999
Ř
Global reach export earnings > 40% revenue
Ř
Proven in –house technology strengths, DISR
recognised R & D facility
Ř
Multiskilled manpower
Ř
Responsive to emerging business needs
- To provide customer "Value for Money" by producing world
class speciality fluoro chemicals at most competitive prices.
- To make Research and Development as the sustainable engine of the
organisation.
- To innovate, build and operate chemical plants in the most safe and
environment friendly manner.
- To continuously enhance stakeholders value by optimum utilisation
of resources.
Its’ products range includes:-
Ř
Speciality Fluoro
Chmicals
Ř
Special Organic
Fluoro Chemicals
Benzotrifluoride
Derivatives
Ř
Benzotrifluoride
Ř
2 Chloro Benzotrifluoride
Ř
4 Chloro Benzotrifluoride
Ř
2 Amino Benzotrifluoride
Ř
3 Amino Benzotrifluoride
Ř
3 Bromo Benzotrifluoride
Ř
4 Bromo Benzotrifluoride
Ř
3 Hydroxy Benzotrifluoride
Ř
4 Chloro 3 Amino Benzotrifluoride
Fluoro Benzene Derivatives
Ř
Fluoro Benzene
Ř
2 Fluoro Nitrobenzene
Ř
4 Fluoro Nitrobenzene
Ř
2 Fluoro Aniline
Ř
4 Fluoro Aniline
Ř
2 Fluoro Phenol
Ř
4 Fluoro Phenol
Ř
4 Bromo Fluoro Benzene
Ř
4 Fluoro Acetophenone
Ř
2,4 Dichloro Fluoro Benzene
Ř
2,4 Dichloro 5 Fluoro Acetophenone
Ř
4,4 Difluoro Benzophenone
Ř
2, Fluoro, 4 Bromo Aniline
Fluoro Toluene
Derivatives
Ř
2 Fluoro Toluene
Ř
3 Fluoro Toluene
Ř
4 Fluoro Toluene
Ř
2 Fluoro Benzyl Chloride
Ř
3 Fluoro Benzyl Chloride
Ř
4 Fluoro Benzyl Chloride
Ř
3 Fluoro Benzaldehyde
Ř
4 Fluoro Benzaldehyde
Ř
4 Fluoro Benzonitrile
Ř
4 Fluoro Benzyl Amine
Aliphatic Fluoro Compounds
Ř
1,1,1, Trichloro Trifluoro Ethane
Ř
Trifluoro Acetic Acid
Ř
113a
Ř
Process
Capabilities
Ř
Balz-Schiemen Reaction (Amino to Fluoro)
Ř
Halex Reaction
Ř
Nitration
Ř
Hydrogenation (Ventury
Ř
Bromination (Incl. Bromine Recovery Plant)
Ř
Photo Chlorination
Ř
Chlorination in dark
Ř
Low Temperature Cryogenic Reactions
Ř
Alkylation
Ř
Oxidation
Ř
Ammonolysis
Ř
Sandmeyers
Ř
Friedel Crafts – acylation & alkylation
Awards And Testimonials
Ř
SGS International Certification Services AG
Ř
British Safety Council
Navin Fluorine CDM Project gets
UNFCCC Approval
To
generate 28 million tonnes of Carbon Credits over 10 years
Mumbai, 2 April 2007:
Editor’s Synopsis
Navin Fluorine’s Clean Development Mechanism (CDM)
The CDM
project to reduce Green House Gas Emissions by 2.8 million tonnes per annum
uses abatement technology by Ineos Fluor Limited,
Company
expects to generate cashflows from FY 2008
Navin Fluorine International Limited (NFIL) today announced
that it’s CDM Project for generating 2.800 million tonnes of Carbon Emission
Reductions has been approved by UNFCCC (United Nations Framework Convention on
Climate Change). The company had initiated the CDM Project to reduce green
house gas emissions in June 2006 by introducing abatement technology provided
by Ineos Fluor Limited,
Speaking on the occasion of the approval Mr. Vinesh Sadekar, MD, Navin
Fluorine International Limited, said: “This is an important milestone in the
speedy implementation of our CDM project. Our project is expected to be
commissioned in June 2007 and revenues are expected to flow in from FY 2008”.
About Navin Fluorine International Limited
Navin Fluorine International Limited (NFIL), part of the Arvind Mafatlal
Group, is the largest and one of the few integrated fluorochemicals complexes,
manufacturing and marketing bulk and speciality fluorochemicals. The company
primarily focuses on three businesses – Refrigeration gases, Chemicals/Bulk
Fluorides and Specialty Organofluorines with manufacturing facilities at
In the domestic business Navin Fluorine’s customers include some well
known names like Ranbaxy, Matrix, Aurobindo, Hetero, Orchid, Lupin, UPL,
Gharda, PI, etc.
In June 2006, Navin Fluorine and INEOS Fluor reached an agreement on
Clean Development Mechanism (CDM) project to reduce green house gas emissions.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.41.09 |
|
|
1 |
Rs.81.46 |
|
Euro |
1 |
Rs.55.16 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
73 |
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. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|