MIRA INFORM REPORT
|
Report
Date : |
05.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
RASHTRIYA CHEMICALS AND FERTILIZERS LIMITED |
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Registered
Office : |
“Priyadarshini”, 10th Floor, Eastern Express
Highway, Sion, Mumbai – 400 022, Maharashtra |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
06.03.1978 |
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Com.
Reg. No.: |
11-20185 |
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CIN
No.: [Company
Identification No.] |
L24110MH1978G01020185 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
MUMRO953E / MUMR15728G |
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PAN
No.: (Permanent
Account No.) |
AAACR2831H |
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Legal
Form : |
Public limited liability company. The company's shares are listed on the
Stock Exchanges. Subject is owned by Government of India. |
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Line
of Business : |
Manufacturing and Distributing of Chemicals and
Fertilizers such as Ammonia, Urea, Complex Fertilizers, Ammonium Nitrate
Phosphate, Methanol, Ammonium Bicarbonate, Argon, Nitric Acid, Sulphuric
Acid, Phosphoric Acid, Dilute Sulphuric Acid, Di-Methylether, Sodium Nitrate,
Carbon Black / Cake / Slurry, Methylamines, Hydroflurosilicic Acid, Ammonium
Nitrate, Dimethel Formamide, Dimethyl Acetamide, P G R Plant Argon, Carbon
Monoxide Plant and Bio Fertilizer. |
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 |
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Maximum
Credit Limit : |
USD 54500000 |
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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 a Government of India Company having moderate
track. However, available information
indicates high financial responsibility of the company, since it is a
Government of India Company. The company's profitability is under severe pressure. General financial position is
satisfactory. Payments are usually
correct and as per commitments. The company can be considered good for normal business
dealings at usual trade terms and conditions. Lenders and creditors may feel confident due to the
exposure of Government of India to the company. |
LOCATIONS
|
Registered
Office : |
“Priyadarshini”, 10th Floor, Eastern Express
Highway, Sion, Mumbai – 400 022, Maharashtra, India |
|
Tel.
No.: |
91-22-24070968/0223/8590/24070024 |
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Fax
No.: |
91-22-2407 0386/24070028 |
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E-Mail
: |
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Website
: |
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Telegram : |
RASHTRIYA |
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Manufacturing
Complexes At: |
Mahul Road, Trombay, Mumbai – 400 071, Maharashtra, India
and at Ali Baug, Thal, Alibaug District, Maharashtra, India |
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Regional
Offices : |
Administrative Building, Chembur, Mumbai – 400 074, Maharashtra,
India Contact Person: Mr. P. K. Ghai – General Manager Tel. No.: 91-22-2556 2164 Thal Unit, Alibaug, Maharashtra, India Contact Person: Mr. H. N. Gakhar Tel. No.: 91-2141-238001 Shri Laxmi Complex, 10-2-289/25, Shantinagar, Hyderabad,
Andhra Pradesh, India Contact Person: Mr. S. S. Bobdey, CMM Tel. No.: 91-40-2331 4251 17/7 Ali Askar Road Cross, Bangalore, Karnataka, India Contact Person : Mr. S. Thangraj, Deputy General Manager Tel. No.: 91-80-225 4920 51, Sir Madhan Nair Road, Mahalingampuram, Chennai – 600
034, Tamil Nadu, India Contact Person : Mr. N. Subramanian, Marketing Manager Tel. No.: 91-44-2826 6245 B-63, Mandir Marg, Mahanagar Extn. Lucknow, Uttar Pradesh,
India Contact Person : Mr. S. B. Selote, Marketing Manager Tel. No.: 91-522-2323 238 Delhi Liaison Office, A-1, Qutab Hotel, Off Sri Aurobindo
Marg, New Delhi – 110 016, India Contact Person: Mr. M. K. Gera, AMM Tel. No.: 91-11-2696 8662 / 2681 5149 Pune Regional Office, 68/5/2 A, Mahalaxmi Complex,
Bibavewadi, Satara Road, Pune – 411 037, Maharashtra, India Contact Person : Mr. D. T. Barkhud, MM Tel. No.: 91-20-52511545 |
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Resident
Representative at Delhi : |
A-1, Qutab Hotel, Off Aurobindo Marg, New Delhi – 110 016,
India Contact Person: Mr. M. K. Gera (Chief Marketing Manager) |
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Tel.
No.: |
91-11-2685 1419 (Office) / 2723 2637 (Res.) |
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Guest
House: |
Ark Guest House, RCF Colony, Chembur, Mumbai – 400 074,
Maharashtra, India Contact Person: Mr. A. N. Borkar, Chief Executive Officer Tel. No.: 91-22-2558 3981 (Office) / 2555 1242 (Res.) Swagat Guest House, Kihim, District Raigad, Alibaug,
Maharashtra, India Contact Person: Maj. Ranade, CAM Tel. No.: 91-2141-238028 (Office) / 238019 (Res.) |
DIRECTORS
|
Name : |
Shri S.
Balan |
|
Designation
: |
Chairman
and Managing Director [Up to 31.07.2005] |
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Name : |
Shri U.S.
Jha |
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Designation
: |
Chairman
and Managing Director |
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Name : |
Shri M.
Sundararaman |
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Designation
: |
Director
(Finance) |
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Name : |
Shri H.S.
Karangle |
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Designation
: |
Director
(Technical) |
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Name : |
Ms.
Swatantra K. Sekhon |
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Designation
: |
Executive
Director |
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Address
: |
FICC,
Sewa Bhavan, New Delhi [upto 27.10.2005] |
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Name : |
Shri K.
P. Fabian |
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Designation
: |
Director
[upto 29.11.2005] |
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Address
: |
C/45,
I.F.S. Apartments, Mayur Vihar, Phase I, Delhi 110091 |
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|
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|
Name : |
Shri
Ashok Misra |
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Designation
: |
Director
[upto 29.11.2005] |
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Address
: |
III,
Powai, Mumbai – 400076 |
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|
Name : |
Dr.
(Mrs.) Hemlatha Santhanam |
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Designation
: |
Director
[upto 29.11.2005] |
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Address
: |
64-Twin
Towers Lane, Off Veer Savarkar Marg Prabhadevi, Mumbai - 400 025 |
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|
|
|
Name : |
Lt. Gen.
(Retd) M.S. Bhullar |
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Designation
: |
Director
[upto 29.11.2005] |
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Address
: |
House no.
138, Section 38, Arun Vihar, Noida - 208 303 |
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|
|
Name : |
Shri
Sanjay Kaushik |
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Designation
: |
Director
[upto 29.11.2005] |
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Address
: |
E-14/22,
Vasant Vihar, New Delhi-110057 |
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|
|
|
Name : |
Shri K.
C. Prakash |
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Designation
: |
Company
Secretary |
KEY EXECUTIVES
|
Name : |
Mr. K. C. Prakash |
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Designation
: |
Company Secretary |
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|
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|
Name : |
Dr. Jivtesh Singh Maini |
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Designation
: |
Additional
Secretary and Financial Advisor [w.e.f. 27.10.2005] |
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Address
: |
Department
of Fertilizers, New Delhi |
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|
|
|
Name : |
Shri
B.K.Sinha |
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Designation
: |
Joint
Secretary [up to 12.07.2006] |
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Address
: |
Department
of Fertilizers, New Delhi [from 16.9.04] |
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|
Name : |
Shri
Balvinder Kumar |
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Designation
: |
Joint
Secretary |
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Address
: |
Department
of Fertilizers, New Delhi [upto 29.7.2004] |
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|
Name : |
Mr.
Deepak Singhal |
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Designation
: |
Joint
Secretary [up to 12.07.2006] |
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Address
: |
Department
of Fertilizers, New Delhi |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters
(Government Of India) |
510314900 |
92.50 |
|
Institutional |
|
|
|
Mutual
Funds |
3674833 |
0.67 |
|
Financial
Institutions, Banks, etc |
5631930 |
1.02 |
|
FII’s |
946055 |
0.17 |
|
Others |
|
|
|
Private
Corporate Bodies |
5238549 |
0.95 |
|
Indian
Public |
25341135 |
4.59 |
|
NRIs/OCB |
540698 |
0.10 |
|
Total |
551688100 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing and Distributing of Chemicals and
Fertilizers such as Ammonia, Urea, Complex Fertilizers, Ammonium Nitrate
Phosphate, Methanol, Ammonium Bicarbonate, Argon, Nitric Acid, Sulphuric
Acid, Phosphoric Acid, Dilute Sulphuric Acid, Di-Methylether, Sodium Nitrate,
Carbon Black / Cake / Slurry, Methylamines, Hydroflurosilicic Acid, Ammonium
Nitrate, Dimethel Formamide, Dimethyl Acetamide, P G R Plant Argon, Carbon
Monoxide Plant and Bio Fertilizer. |
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Products
: |
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PRODUCTION STATUS
|
Products |
Licensed Capacity
(MT) |
Installed Capacity
(MT) |
Actual Production |
|
Ammonia
(Trombay-I) |
116000 |
115500 |
48885 |
|
Ammonia
(Trombay-V) |
297000 |
297000 |
196125 |
|
Ammonia
(Thal) |
NA |
990000 |
981650 |
|
Urea
(Trombay-V) |
427500 |
330000 |
-- |
|
Urea
(Thal) |
NA |
1706800 |
1684561 |
|
Suphala15:15:15
(Complex Fertilizers) |
300000 |
300000 |
430500 |
|
Suphala
20:20:20 (Ammonium Nitrate Phosphate) |
361000 |
361000 |
222800 |
|
Methanol |
37500 |
49500 |
56085 |
|
Ammonium
Bicarbonate |
NA |
4000 |
20009 |
|
Argon
(million NM3) |
NA |
3 |
1.0 |
|
Nitric
Acid (100%) |
101600 |
105600 |
111560 |
|
Nitric
Acid (100%) (Trombay IV) |
255000 |
247500 |
236705 |
|
Sulphuric
Acid (98%) |
99000 |
99000 |
86036 |
|
Phosphoric
Acid |
32000 |
30000 |
25430 |
|
Dilute
Sulphuric Acid |
NA |
0 |
82416 |
|
Sodium
Nitrate/Nitrite |
4000 |
4000 |
4458 |
|
Concentrated
Nitric Acid |
NA |
20000 |
23148 |
|
Methylamines
- (Trombay) |
4000 |
4000 |
5783 |
|
Methylamines
- (Thal) |
NA |
11400 |
8672 |
|
Hydroflurosilicic
Acid |
NA |
1400 |
-- |
|
Ammonium
Nitrate (100%) |
54000 |
54000 |
76554 |
|
Dimethyl
formamide |
NA |
2500 |
3529 |
|
N-15
(Grams) |
NA |
800 |
-- |
|
T. G.
Urea (Thrombay) |
NA |
0 |
0 |
|
T. G.
Urea (Thal) |
NA |
0 |
33789 |
|
Di Methyl
Acetamide |
NA |
5000 |
1352 |
|
Carbon
Monoxide Plant (million NM3) |
NA |
9.5 |
4.8 |
|
Biola
(Bio Fertilizer) |
150 |
150 |
85 |
|
Microla
(Ltrs) |
100000 |
100000 |
30413 |
|
Formic
Acid |
NA |
10000 |
4779 |
|
Sujala
19:19:19 |
NA |
150 |
811 |
GENERAL INFORMATION
|
No. of
Employees : |
4600 |
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Bankers
: |
State
Bank of India Swastik
Chamber, Chembur, Mumbai |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Statutory
Auditors: A. J.
Shah and Company Chartered
Accountants, Mumbai S. Mohan
and Company Chartered Accountants, Ahmedabad Batliboi
and Company Chartered Accountants, Mumbai |
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|
|
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Associates
: |
All
Government of India Undertaking Companies |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
800000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 8000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
551688100 |
Equity
Shares |
Rs. 10/- each |
Rs. 5516.900 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 |
5516.900 |
5516.900 |
5516.900 |
|
|
3]
Reserves & Surplus |
8144.100 |
7293.500 |
6954.000 |
|
NETWORTH
|
13661.000 |
12810.400 |
12470.900 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
3372.400 |
2747.100 |
1237.400 |
|
|
2]
Unsecured Loans |
1000.000 |
1000.000 |
900.000 |
|
TOTAL
BORROWING
|
4372.400 |
3747.100 |
2137.400 |
|
|
DEFERRED
TAX LIABILITIES |
1933.400 |
2001.200 |
2106.800 |
|
|
|
|
|
|
|
TOTAL
|
19966.800 |
18558.700 |
16715.100 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
8724.100 |
8890.600 |
8750.500 |
|
Capital work-in-progress
|
1857.400 |
603.500 |
193.900 |
|
|
|
|
|
|
|
INVESTMENT
|
1.700 |
1.700 |
1.700 |
|
DEFERREX TAX ASSETS
|
493.700 |
468.600 |
315.500 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
4263.400
|
4339.900
|
3913.900 |
|
|
Sundry Debtors
|
7245.600
|
4825.900
|
3959.200 |
|
|
Cash & Bank Balances
|
665.700
|
545.400
|
301.700 |
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances
|
3528.100
|
3564.700
|
3092.800 |
Total Current Assets
|
15702.800
|
13275.900
|
11267.600 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
4938.900
|
2469.800
|
2155.500 |
|
|
Provisions
|
1920.000
|
2308.000
|
1788.700 |
Total Current Liabilities
|
6858.900
|
4777.800
|
3944.200 |
|
Net
Current Assets
|
8843.900 |
8498.100 |
7323.400 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
46.000 |
96.200 |
130.100 |
|
|
|
|
|
|
|
TOTAL
|
19966.800 |
18558.700 |
16715.100 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
31487.400 |
28525.200 |
24751.100 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
2156.700 |
2125.900 |
2571.300 |
Provision for Taxation
|
677.100 |
716.300 |
893.400 |
Profit/(Loss) After Tax
|
1479.600 |
1409.600 |
1677.900 |
|
|
|
|
|
Export Value
|
10.400 |
90.500 |
1.600 |
|
|
|
|
|
Import Value
|
2964.600 |
1631.300 |
1027.000 |
|
|
|
|
|
Total Expenditure
|
29336.800 |
26412.600 |
22193.100 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
31.12.2006 (3rd Quarter) |
|
Sales Turnover |
6582.600 |
9870.600 |
9299.700 |
|
Other Income |
101.400 |
158.600 |
219.700 |
|
Total Income |
6684.000 |
1,0029.200 |
9519.400 |
|
Total Expenditure |
6335.700 |
9158.400 |
8309.200 |
|
Operating Profit |
348.300 |
870.800 |
1210.200 |
|
Interest |
77.700 |
102.700 |
118.500 |
|
Gross Profit |
270.600 |
768.100 |
-- |
|
Depreciation |
170.300 |
188.900 |
-- |
|
Tax |
25.700 |
145.500 |
250.600 |
|
Reported PAT |
74.600 |
433.700 |
646.000 |
Notes
2006-06 Quarter 1
Expenditure Includes (Increase)/Decrease in
Stock in Trade Rs (518.60) million Consumption of Raw Materials Rs 5266.50
million Purchase of finished Goods Rs 16.10 million Staff Cost Rs 398.30
million Other Expenditure Rs 1173.40 million Tax Includes Provision for Current
Taxation Rs 22.10 million Fringe Benefit Tax Rs 3.60 million 1. The above
statement has been taken on record by the Board at the meeting held on July 21,
2006. 2. Provision for Deferred Taxation will be considered at the end of
financial Year. 3. There were no investor complaints pending at the beginning
of the quarter 6 complaints were received during the quarter and were attended
to. 4. Previous Period figures have been regrouped wherever necessary.
2006-09 Quarter 2
Expenditure Includes (Increase)/Decrease in
Stock in Trade Rs 1328.60 million Consumption of Raw Materials Rs 6310.50
million Staff Cost Rs 314.10 million Other Expenditure Rs 1205.20 million Tax
Includes Provision for Current Taxation Rs 141.00 million Fringe Benefit Tax Rs
4.50 million Status of Investor Complaints for the quarter ended September 30,
2006 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 11 Complaints disposed off during the quarter 11 Complaints
unresolved at the end of the quarter Nil 1. The above statement has been taken
on record by the Board at the meeting held on October 27, 2006. 2. Provision
for current taxation is made in accordance with Income Tax Act 1961. Deferred
Tax liability / Asset will be considered at the end of the financial year. 3.
Subsidy on complex fertilizers from April 2006 to September 2006 has been
considered based on the expected rates to be notified for the period from April
2006 to June 2006. 4. Previous Period figures have been regrouped wherever
necessary.
200612 Quarter 3
Notes
Expenditure
Includes (Increase)/Decrease in Stock in Trade Rs 571.00 million Consumption of
Raw Materials & Utilities Rs 6075.40 million Staff Cost Rs 373.90 million
Other Expenditure Rs 1288.90 million Tax Includes Provision for Current
Taxation Rs 246.90 million Fringe Benefit Tax Rs 3.70 million Status of
Investor Complaints for the quarter ended December 31, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 12
Complaints disposed off during the quarter 12 Complaints unresolved at the end
of the quarter Nil 1. The above statement has been taken on record by the Board
at the meeting held on January 31, 2007. 2. Provision for current taxation is
made in accordance with Income Tax Act 1961. Deferred Tax liability / Asset
will be considered at the end of the financial year. 3. Subsidy on complex
fertilizers for the period from July 2006 to December 2006 has been considered
based on the expected rates notified for the period from April 2006 to June
2006. 4. Previous Period figures have been regrouped wherever necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.31 |
0.23 |
0.34 |
|
Long Term Debt-Equity Ratio |
0.08 |
0.04 |
0.06 |
|
Current Ratio |
1.38 |
1.43 |
1.40 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.27 |
1.20 |
1.02 |
|
Inventory |
7.06 |
6.86 |
5.55 |
|
Debtors |
5.14 |
6.44 |
5.11 |
|
Interest Cover Ratio |
13.69 |
27.13 |
8.91 |
|
Operating Profit Margin(%) |
9.71 |
10.23 |
15.27 |
|
Profit Before Interest And Tax Margin(%) |
7.50 |
7.77 |
12.32 |
|
Cash Profit Margin(%) |
6.98 |
7.44 |
10.10 |
|
Adjusted Net Profit Margin(%) |
4.77 |
4.98 |
7.15 |
|
Return On Capital Employed(%) |
13.51 |
14.21 |
17.90 |
|
Return On Net Worth(%) |
11.18 |
11.15 |
13.80 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 38.00/- |
|
Low |
Rs. 37.10/- |
LOCAL AGENCY FURTHER INFORMATION
History :
Subject
was incorporated in 1978 with the reorganization of the erstwhile Fertilizer
Corporation of India. Subject manufactures and markets a wide range of chemical
fertilizers and a series of industrial chemicals. It has plants at Trombay and
Thal.
Subject set up purge gas recovery units in order to recover ammonia, hydrogen,
methane and argon from the purge gas coming out of the ammonia plants at
Trombay and Thal. A dimethyl formamide plant (cap. : 2500 tpa) and a
methylamine plant with a capacity of 5000 tpa were installed at Thal in
1991-92. It commissioned a dimethyl acetamide plant at Thal in 1993-94. In 1994-95,
Subject signed a MoU with Saudi Formaldehyde Chemical Company, to set up a
chemical complex in Saudi Arabia for the manufacture of 300 tpa of methanol. At
present, Subject has four urea fertilizer plants, two complex fertiliser
plants, four ammonia plants and several industrial product plants consisting of
heavy water, methyl alchohol, methylamines, nitric acid, sulphuric acid,
phosphoric acid, ammonium bicarbonate, sodium nitrate, sodium nitrite, dimethyl
formamide and dimethyl acetamide.
During 1998-99, the company has signed MOU with UCB S.A. Chemicals, Belgium, an
internationally reputed chemicals manufacturing and marketing company having
units all over the world, to produce 20000 MTPA, of Methylaminies and its
derivatives at Thal. It has also commissioned 10000 MTPA Formica Acid Plant at
Thal.
The Company is envisaging a joint venture project for manufacturing DAP at
Udaipur in Rajashtan with Hindustan Zinc Limited, Udaipur and Rajasthan State
Mines and Minerals Limited and the final decision on feasibility project is
awaiting. The company has invested around Rs 5000 millions for the upgradation
of its plants at Trombay and is converting most of its existing plants to
operate on natural gas.
During 2000-2001, the company entered into an agreement with Metgas a
subsidiary of Enron, for long term supply of regassified LNG. The Company has
also recently commissioned the Naptha Feed Supplement Project at Thal, which
would enable the plant to run at enhanced capacity by utilizing alternate feed
Naptha partly along with available gas from GAIL. To reduce steam consumption
from Urea Plant at Thal the company implemented an energy saving optimization
scheme at a cost of Rs. 400 millions.
A major expansion plan at Thal plant consisting of 1350 MTPD Ammonia and 2200
MTPD urea plan is under awaiting the final approval from the Government of
India at an estimated capital outlay of Rs. 14460 millions. The Techno-economic
Feasibility of Methylamine for expansion is under preparation. The total cost
for the expansion is estimated to be Rs.250 millions. The Disinvestment
Ministry has started the process of disinvestment of the company and the
Government is proposing to reduce 51% of its equity to a strategic partner,
with transfer of Management Control.
Subject has completed the project of modernization of the front end of H.P.
Nitric Acid Plant at its Trombay unit, consisting of air compressor, reactor
etc at cost of Rs. 858.10 millions in January 2005. The Company has planned to
revamp the Trombay-V Ammonia Plant by upgrading the technology to improve
efficiency and reduce energy consumption at an estimated cost of Rs. 2490
millions and this project will be completed by April 2006. The company has also
planned to increase the production capacity of Methylamine plant at Thal to
produce additional 6400 MTPA and this project is estimated at a cost of Rs.
297.80 millions. Further the company has planned to setup 1 X 2000 MTPD Ammonia
Plant and 1 X 3200 MTPD Urea Plant along with power generation, offsite, utilities
and product handling facilities at Thal and this project is estimated at a cost
of Rs. 18410 millions. The company has also planned for adopting Cryogenic
separation of tail gas generated in Hydrogen Recovery Unit of Ammonia Plants at
Thal, at an estimated cost of Rs. 700 millions.
Highlights
for the year 2005-2006:
The company's overall performance was excellent during the financial year
2005-06. The company achieved highest ever turn over of Rs. 32294.500 millions.
The total income from operations was Rs. 31325.400 millions as against Rs.
284.044 millions during the previous year registering a growth of 10.28%. The
company achieved a profit before depreciation, interest and tax of Rs. 2850.000
millions as against Rs. 2782.500 millions during the previous year, thus
recording an increase in the operational profits by 2.43%. The operating profit
maintained pace with the growth in the turnover despite increased cost of
Naphtha and other input costs. The net Profit after Tax during the current year
is Rs. 1479.600 millions as against Rs. 1409.600 millions in the previous
year.
The company's operations were severely affected due to constraint in the gas
availability. The loss suffered in the first quarter of the year was immense,
because of heavy deluge on 26.07.2005, which forced the company to take
emergency shutdown of all plants. Further, the Gas Supply to the company's
plant was also curtailed by ONGC from that date till 28.08.2005 due to fire at
the Bombay High Platform. The input costs especially naphtha has also increased
substantially during the year. Inspite of all these set backs the company's
performance has been laudable.
PRODUCTION
Fertilizers:
The company produced 2.338 millions MT of fertilizers during the year as
against 2.363 millions MT produced in the previous year and achieved overall
capacity utilization of 87%. The capacity utilization of the Urea plants was to
the extent of 83% only since the plant at Trombay was not operated. As regards
complex fertilizers are concerned, the plants produced to the extent of 99%. In
terms of nutrients, the company produced 0.884 millions MT of Nitrogen (N),
0.109 million MT of Phosphate (P205) and 0.065 million MT of Potassium (K2O)
during the year as compared to 0.921 million MT of N, 0.097 million MT of P205
and 0.052 million MT of K2O. The production has been affected due to the
constraint in feedstock gas supply. The performances of the units are given
below:
Thai Unit:
Thal unit produced 168.500 millions MT of Urea during the year compared to
179.000 millions MT produced in the previous year, recording a decline of 5.9%.
The unit achieved a capacity utilization of 98.7%. The unit produced 0.982
million MT of Ammonia compared to 1.059 millions MT during previous year. The
energy consumption per MT of Urea increased from 6.48 Gcal to 6.505 Gcal and
for Ammonia produced, the consumption increased from 9.13 Gcal to 9.15 Gcal due
to various reasons stated above.
The unit was bestowed with several awards and honours for its performance,
energy conservation and safety. The unit was presented with the runner up award
for 'Best Overall Performance of an Operating Unit in the country' by
Fertilizer Association of India (FAI). The unit was also awarded by FAI for
excellence in safety for 2004-05.
The unit received the Green Touch Foundation Safety Gold Award for the year
2005.
The unit's Heavy water plant was bestowed with the 'First prize for Industrial
Safety 2005' by DAE for the year 2005.
MARKETING
PERFORMANCE
Fertilizers:
The
company achieved a total sales volume of 2.620 millions MT during 2005-06 as
compared to 2.536 millions MT in the previous year, an increase of 3% over the
previous year. During the year, the company sold 1.724 millions MT of Urea,
0.431 million MT of Suphala 15:15:15; 0.227 million MT of Suphala 20:20:0 and
0.238 million MT of bought out material as compared to 1.783 millions MT, 0.375
million MT, 0.243 million MT and 0.135 million MT respectively during the
previous year. There was a decline in sales of urea and Suphala 20:20:0 due to
production constraints. The total field stocks at the close of the year was
0.082 million MT which is the lowest in the history of the company compared to
0.135 million MT from the previous year. The carrying cost has also been
brought down significantly.
Industrial Products:
The
Industrial Products Division maintained its performance during the year
2005-06. The division achieved a turn over of Rs. 4205.400 millions as compared
to Rs. 4442.400 millions during the previous year, despite continued fierce
competition both from domestic and international players.
Exports:
The Export turnover for the year 2005-2006 was Rs. 10.400 millions as against
Rs. 90.600 millions achieved during the previous year. During 2005-06, the
company exported Suphala 15:15:15, Suphala 20:20:0 Ammonium Bi Carbonate, DMAC,
DMF, Formic Acid etc. Considering the product-line of the Company, scope for
exporting and earning foreign exchange is very limited.
OTHER
PROJECTS:
Joint Venture DAP Project,
Rajasthan:
The company is proposing to set up a JVC, for manufacturing 850 MTPD DAP, with
M/s. Rajasthan State Mines & Minerals Limited (RSMML), at Rajasthan. The
two partners would harness their resources. Rock Phosphate will be supplied by
RSMML while your Company with its vast marketing network shall market the
entire DAP produced. Pre-DFR is under preparation.' Based on the economic
viability, JV Partners shall decide further course of action.
Investment decision will be taken after ensuring the viability of the project,
based on the DFR. Estimated cost of this project is approx. Rs. 4060
millions.
Coal Based Chemical Complex:
A
techno-economic feasibility study has been carried out for setting up a
chemical complex based on production of synthesis gas from coal. Latest Coal
Gasification technology will be utilized which will allow use of coal with high
ash content upto 30-35%. Survey of several locations around the coal belts in
the country has been carried out. On preliminary assessment the site at FCI
Talcher appears to be the most suitable in view of certain infrastructure
facilities available and proximity to coal mines. Investment decision will be
taken based on further study.
Fixed Assets
Land, Roads & Culverts, Buildings, Railway Sidings,
Plant & Machinery, Water System Sewerage & Drainage, Furniture,
Fixtures & Office Appliances, Transport Vehicles and Computer Software.
AS PER WEBSITE
Mission :
Subject as a corporate body and Government of India
undertaking is responsible to the people of India, the Government as owner,
Government as Government, Consumers, Employees, the Society at large and
Posterity. The company is simultaneously accountable to all these agencies who
have a stake in it's successful operation, growth and welfare.
Keeping these aspects in view, Subject has set for itself
the following corporate goals
Ø To help increase the national
agricultural productivity by providing agricultural inputs and services.
Ø To provide the above inputs and
services with least consumption of real resources and at least cost.
Ø To obtain for it's employees as
decent a standard of living and as good a quality of life as possible,
consistent with the general socio-economic conditions in the country.
Ø To secure as high a return on the
rate of investment as possible, keeping in view the requirements of other
competing objectives.
Ø To promote self-reliance in all
activities in relation to company's operations including process know-how,
design and engineering, erection, commissioning, operations, maintenance of
plants and marketing of products.
Ø To manufacture and market industrial
chemicals related to agricultural inputs and also others based on similar
technology and intermediates, by-products, co-products and waste from the main operations.
Ø To promote, organize, and perform
research and development in products, technology, engineering, soil science and
agronomy in furtherance of various corporate objectives.
Ø To improve the environment and
minimize to the maximum extent technologically possible, the harmful emissions,
atmospheric discharges and effluents.
Ø To continuously upgrade the quality
of human resources and promote organizational and management development.
Ø To co-operate nationally and
internationally in exchange of information and services of personnel.
Ø To have corporate growth at a pace
consistent with availability of resources and developmental needs of the
economy.
Ø To promote specific social
objectives such as development of entrepreneurs, ancillary industries, special
assistance to SC / ST and other backward classes.
INDUSTRIAL PRODUCTS:
Subject pioneered the manufacture of basic chemicals such as
Methanol, Sodium Nitrate, Sodium Nitrite, Ammonium bicarbonate, Methylamines,
Dimethyl Formamide, Dimethylacetamide in India. Today R.C.F is the only
manufacture of DMF in India.
PACKAGING AND MODES OF
TRANSPORT:
Product characteristics, consumer needs, economy to the
consumers and safety are the primary considerations in determining the type of
packaging and modes of transportation for each of the products.
Chemicals having vapour pressure like Anhydrous Ammonia and
Methylamines are transported ion bulk, in specially designed mobile pressure
vessels. in accordance with the norms set for liquefiable gases under pressure.
Requirements of smaller consumers are met in cylinders.
Tankers are also employed for transport of Methanol,
Dimethyl Formamide, Dimethylacetamide, acids and solutions of Methylamines and
Ammonium Nitrate.
Transporters and consumers are given guidelines for safety
and methods of storing, loading and unloading.
INDUSTRIAL PRODUCTS
DIVISION:
Subject took the advantage of manufacturing industrial
products since its fertilizer manufacturing process already incorporated
Ammonia, Nitric Acid and Sulphuric Acid plants.
ISO CERTIFICATION:
Subject has obtained ISO- 14001-1996 Certificate for Trombay
and Thal units and ISO 9001-2000 approved manufacturing facility for Thal
Chemical group of plants.
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.44.11 |
|
UK Pound |
1 |
Rs.86.58 |
|
Euro |
1 |
Rs.57.04 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--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 |
|
45 |
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 |
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 |