MIRA
INFORM REPORT
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Report Date : |
14.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
INDIAN
PETROCHEMICALS CORPORATION LIMITED |
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Registered
Office : |
P.O.
Petrochemicals, Vdodara - 391 346, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of
Incorporation : |
22.03.1969 |
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Com. Reg. No.: |
1569 |
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CIN No.: [Company
Identification No.] |
L23200GJ1969PLC001569 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRD100275C |
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PAN No.: [Permanent
Account No.] |
AAAC14415Q |
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Legal Form : |
Public limited
liability company. The company’s
shares are listed on the Stock Exchanges |
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Line of
Business : |
Manufacturing and
Marketing of polymers, ethylene glycol, fibre and fibre intermediates,
catalysts, benzene, butadeine, ethylene, ethylene oxide, hydrocyanic acid,
propylene, ortho xylene & mixed xylenes, paraxylene and other chemicals. |
RATING & COMMENTS
|
MIRA’s Rating
: |
Aa |
RATING
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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 : |
EUR 100000000 |
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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
well-established and reputed company. The company's financial position is
good. The company is progressing well. The company's payments are always
correct and as per commitments. Recently,
Reliance Group acquired substantial shares in the company through Government
of India’s disinvestment programme. The company can
be considered for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
P.O.
Petrochemicals, Vdodara391 346, |
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Tel. No.: |
91-265-669600 / 7000 |
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Fax No.: |
91-265-6693834 |
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E-Mail : |
investorrelations.corp@ipcl.co.in |
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Website : |
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Factory: |
A/10-A/27, UPSIDC Industrial Area, Kailash Nagar, Karchana, E O. T.S.L., Dist. Uttar Pradesh
Barabanki - 225 123
Baulpur, District Dhenkanal Orissa-759031
E O. Dahej, Bharuch - 392 130,
District Hoshiarpur, Funjab - 146 014
E O Nagothane Raigad - 402 125, Village Dahali TehsilMouda- 441104 District
342, Kharadpada. Near Silvassa Nagar Haveli - 396 235
P. O. Petrochemicals Vadodara - 391 346, |
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Mumbai Office
: |
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Tel. No.: |
91-22-22021674 |
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Fax No.: |
91-22-22022664 |
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2nd
Floor, Himalaya House, 23 Kasturba Gandhi Marg, |
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Tel. No.: |
91-11-23314291 |
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Fax No.: |
91-11-23327223 |
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Regional
Office : |
Commercial
Complex, 1-B, 9, Also located at: |
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Sales Office : |
Located at |
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International
Business Group (Export) : |
Located at Mumbai and Vadodara |
DIRECTORS
|
Name : |
Mr. Mukesh D. Ambani |
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Designation : |
Chairman |
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Name : |
Mr. Nikhil R. Meswani |
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Designation : |
Director |
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Name : |
Mr. Anand J. Jain |
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Designation : |
Director |
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Name : |
Mr. Kamal P. Nanavaty |
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Designation : |
Director |
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Name : |
Mr. Rajendra S. Lodha |
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Designation : |
Director |
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Name : |
Mr. Shailesh V. Haribhakti |
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Designation : |
Director |
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Name : |
Mr. Lalit Bhasin |
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Designation : |
Director |
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Name : |
Mr. Sandeep H. Junnarkar |
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Designation : |
Director |
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Name : |
Mr. Shiv Kumar Bhardwaj |
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Designation : |
Director |
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Name : |
Mr. Sandesh K. Anand |
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Designation : |
Whole-time Director |
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Name : |
Mr. G. V. Ramani |
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Designation : |
Chief Financial Officer |
KEY EXECUTIVES
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Name : |
Ms. Shashikala Rao |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No of Share held |
Percentage of
Holding |
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Share Holding Promoter and Promoter Group2 |
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1) Indian |
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a) Individuals/ Hindu Undivided Family |
0 |
0.00 |
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b) Central Government/ States
Government |
0 |
0.00 |
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c) Bodies Corporate |
142370752 |
47.35 |
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d) financial Institutions/ Banks |
0 |
0.00 |
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e) Any Other (Specify) |
0 |
0.00 |
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Sub Total: (A)
(1) |
142370752 |
47.35 |
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2) Foreign |
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a) Individuals(Non Resident Individuals/ Foreign Individula) |
0 |
0.00 |
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b) Bodies Corporate |
0 |
0.00 |
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C) Institutions |
0 |
0.00 |
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d) Any Other (Specify) |
0 |
0.00 |
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SubTotal: (A)
(2) |
0 |
0.00 |
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Total of
Promoter and Promoter Group |
142370752 |
47.39 |
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B) Public
Shareholding 3 |
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1) Institutions |
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a) Mutual Funds/ UTI |
911958 |
3.03 |
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b) Financial Institutions |
7179865 |
2.39 |
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c) Central Government/ State Government |
1040604 |
0.35 |
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d) Venture Capital Funds |
0 |
0.00 |
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e) Insurance Companies |
37809416 |
12.57 |
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f) Foreign Venture Capital Investors |
30405632 |
10.11 |
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h)Any Other (Specify) |
0 |
0.00 |
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Sub Total: (B)
(1) |
85547475 |
28.45 |
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2) Non
Institutions |
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a) Bodies
corporate |
25383854 |
8.45 |
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b) Individuals i. Individual shareholders holding nominal share capital upto Rs.
0.100 Millions |
43646627 |
14.51 |
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ii. Individual Share Holders holding nominal share capital in excess
of Rs.0.100 Millions |
2475009 |
0.82 |
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c) Any Other
(Specify) |
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i. NRIs/ OCBs |
945801 |
0.31 |
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ii. Pending Confirmation |
0 |
0.00 |
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Sub Total:(B)
(2) |
72477457 |
24.10 |
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Total Public
Share Holding B= (B)(1)+(B) (2) |
158024932 |
52.55 |
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Total(A) +(B) |
300395684 |
99.90 |
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C) Sahres held
by Custodians and against which Depository Receipts have been issued |
307114 |
0.10 |
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Grand Total (A)
+ (B) + (C) |
300702798 |
100.00 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturing and
Marketing of polymers, ethylene glycol, fibre and fibre intermediates,
catalysts, benzene, butadeine, ethylene, ethylene oxide, hydrocyanic acid,
propylene, ortho xylene & mixed xylenes, paraxylene and other chemicals. |
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Products : |
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PRODUCTION STATUS
As at 31.03.2006
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Polymers |
MT |
NA |
1252690 |
1176682 |
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Ethylene Glycol * |
MT |
196100 |
264480 |
239149 |
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Catalysts |
MT |
NA |
60 |
-- |
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Benzene |
MT |
55000 |
55000 |
30217 |
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Butadeine |
MT |
36000 |
36000 |
-- |
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Ethylene Oxide |
MT |
830000 |
830000 |
14216 |
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Hydrocynic Acid |
MT |
25000 |
25000 |
17247 |
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Propylene |
MT |
3600 |
3600 |
3208 |
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Polyester Staple Fibre/Chips |
MT |
235460 |
235460 |
279685 |
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Polyester Yarn |
MT |
NA |
268300 |
11313 |
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Polyester Texturised/twist yarn |
MT |
NA |
22800 |
100884 |
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Other Fibre & Fibre Intermediates |
MT |
NA |
132000 |
33863 |
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Ortho Xylene & Mixed Xylene |
MT |
47900 |
94012 |
-- |
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Paraxylene |
MT |
48600 |
47900 |
-- |
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Other Chemicals |
MT |
NA |
1425915 |
424795 |
GENERAL INFORMATION
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No. of Employees : |
13740 |
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Bankers : |
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Facilities : |
Notes: 1. Debentures referred to in A(a) above consist of (i) 9.9% 'S' Series
Debenture of Rs.1.000 Millions each aggregating Rs.350.000 Millions redeemable at par on 25th June, 2007 and (ii) 9.6% T' Series Debenture of
Rs.100.000 Millions each aggregating
Rs. 400.000 Millions redeemable at par on 12th July, 2007. The Debentures are secured by way of first equitable mortgage on all
those pieces and parcels of land admeasuring 2.04 acres situated at Village
Angadh, District Vadodara in the State of 2. (a) Debenture Suspense Account includes Optionally Fully
Convertible Debentures aggregating Rs.1450.000 Millions, the holders of which
have exercised the conversion option by making an application with further
payments of Rs.2610.000 Millions. In terms of and pursuant to the Scheme of
Amalgamation and upon exercise of the conversion option, the aggregate amount
of Rs. 4060.000 Millions has been appropriated and 1,33,55,263 Equity Shares of Rs. 10 each credited as fully paid up have been
allotted on 13th October, 2006 to the debenture holders. (b) Balance Debentures under Debenture Suspense Account aggregating
Rs. 2689.500 Millions are to be allotted to the secured creditors including debenture holders of the transferor companies in terms of the Scheme
of Amalgamation sanctioned by Gujarat High Court. Such debentures shall be secured by the mortgages and charges over the properties
acquired by the Company pursuant to the Scheme. These Debentures are
redeemable at par, in one or more installments, on various dates, with the
earliest redemption being on 31st March, 2007 and the last being on 6th May,
2015. 3. Term Loans are secured as under: (a) Foreign currency term loan referred to in B(a) above are secured
on land admeasuring 1 acre situated at Village Angadh, District Vadodara in the State of thereto, and the whole of the other fixed assets of Vadodara and
Gandhar Complexes of the Company except all the pieces and parcels of land of the said complexes. (b) Rupee loan referred to in B(b) above are to be secured by way of
first charge over Plant and Machinery situated at Silvassa unit and second charge over fixed assets, present and future, except the assets which
are exclusively charged to other banks/ financial institutions etc. 4. Working capital loans from Banks referred to in C above are
secured/to be secured by hypothecation of stocks of raw materials,
stock-in-process, Finished goods, stores, receivables and goods in transit of our
Vadodara, Gandhar, Nagothane,
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Chartered Accountant
Chartered Accountant |
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Memberships : |
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Collaborators : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
400000000 |
Equity Shares |
Rs.10/- each |
Rs.4000.00 Millions |
|
400000000 |
Preference Shares |
Rs.10/- each |
Rs.4000.00 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300702798 |
Equity Shares |
Rs.10/- each |
Rs.3007.028
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 |
2490.500 |
2490.500 |
2490.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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Equity Shares Suspense |
391.200 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
46819.200 |
26720.000 |
20230.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
49700.900 |
29210.500 |
22721.200 |
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5962.400 |
6598.500 |
11900.300 |
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2] Unsecured Loans |
6051.700 |
1004.000 |
9760.200 |
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TOTAL BORROWING |
12014.100 |
7602.500 |
21660.500 |
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DEFERRED TAX LIABILITIES |
11006.100 |
11011.600 |
9672.300 |
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Liability for Leased Assets |
4599.800 |
4933.900 |
5279.100 |
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TOTAL |
77320.900 |
52758.500 |
59333.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
58613.00 |
50050.000 |
53859.300 |
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Capital work-in-progress |
970.700 |
588.000 |
806.600 |
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INVESTMENT |
1798.200 |
1653.300 |
1512.300 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
12261.300
|
6231.200 |
7731.000 |
|
|
Sundry Debtors |
4504.800
|
7010.600 |
4032.900 |
|
|
Cash & Bank Balances |
10795.700
|
6648.200 |
506.100 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
16525.500
|
4565.800 |
3770.800 |
|
Total
Current Assets |
44087.300
|
24455.800 |
16040.800 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
23841.000
|
19994.700 |
10885.000 |
|
|
Provisions |
4307.300
|
3993.900 |
2000.900 |
|
Total
Current Liabilities |
28148.300
|
23988.600 |
12885.900 |
|
|
Net Current Assets |
15939.0000
|
467.200 |
3154.900 |
|
|
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|
|
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
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|
|
|
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TOTAL |
77320.900 |
52758.500 |
59333.100 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
109224.000 |
81991.200 |
80695.200 |
|
|
Other Income |
2669.300 |
1321.700 |
0.000 |
|
|
Variation in stock |
2324.100 |
29.200 |
0.000 |
|
|
Total Income |
114217.400 |
83342.100 |
80695.200 |
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|
|
|
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|
|
|
Profit/(Loss) Before Tax |
15941.900 |
10256.500 |
3365.600 |
|
|
Provision for Taxation |
4304.400 |
2399.200 |
630.000 |
|
|
Profit/(Loss) After Tax |
11637.500 |
7857.300 |
2735.600 |
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Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
16042.900 |
16085.200 |
27431.400 |
|
Total Earnings |
16042.900 |
32128.100 |
27431.400 |
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Imports : |
|
|
|
|
|
|
Raw Materials+ |
13610.900 |
12222.300 |
0.000 |
|
|
Stores & Spares |
1778.800 |
1391.300 |
0.000 |
|
|
Capital Goods |
648.300 |
123.800 |
0.000 |
|
|
Others |
694.900 |
51.800 |
8669.200 |
|
Total Imports |
16732.900 |
13789.200 |
8669.200 |
|
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Expenditures : |
|
|
|
|
|
|
Purchase |
1119.700 |
636.500 |
0.000 |
|
|
Manufacturing Expenses |
90193.000 |
65769.100 |
0.000 |
|
|
Interest |
1347.900 |
1623.00 |
0.000 |
|
|
Depreciation & Amortization |
5614.900 |
5057.000 |
77329.600 |
|
Total Expenditure |
98275.500 |
73085.600 |
77329.600 |
|
QUARTERLY /
SUMMARISED RESULTS
|
Particulars |
|
|
31.03.2007 (Rs. In Million) |
|
Type |
|
|
Full Year |
|
Sales Turnover |
|
|
121290.000 |
|
Other Income |
|
|
3040.000 |
|
Total Income |
|
|
124330.000 |
|
Total Expenditure |
|
|
101320.000 |
|
Operating Profit |
|
|
23010.000 |
|
Interest |
|
|
1500.000 |
|
Gross Profit |
|
|
21510.000 |
|
Depreciation |
|
|
5590.000 |
|
Tax |
|
|
6750.000 |
|
Reported PAT |
|
|
10320.000 |
|
Dividend (%) |
|
|
600.000 |
KEY RATIOS
|
PARTICULARS |
310.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.25 |
0.56 |
1.21 |
|
Long
Term Debt-Equity Ratio |
0.23 |
0.37 |
0.66 |
|
Current
Ratio |
0.81 |
0.53 |
0.46 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.18 |
0.97 |
0.94 |
|
Inventory |
13.37 |
13.44 |
10.30 |
|
Debtors |
21.47 |
17.00 |
25.72 |
|
Interest
Cover Ratio |
12.83 |
7.32 |
2.61 |
|
Operating
Profit Margin(%) |
18.53 |
18.05 |
13.88 |
|
Profit
Before Interest And Tax Margin(%) |
13.99 |
12.66 |
8.66 |
|
Cash
Profit Margin(%) |
13.96 |
13.76 |
9.57 |
|
Adjusted
Net Profit Margin(%) |
9.41 |
8.37 |
4.34 |
|
Return
On Capital Employed(%) |
35.10 |
29.26 |
15.57 |
|
Return
On Net Worth(%) |
29.64 |
30.26 |
17.17 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.296.40 |
|
Low |
Rs.292.10 |
LOCAL AGENCY FURTHER INFORMATION
History
The company was
incorporated on 22nd March 1969 at Vadodara in
It was converted
into a public limited company in 1986.
Subject was
promoted by Government of India. It
commenced its operations in 1973, with an aromatic complex, located at
Vadodara. It commissioned a naphtha cracker at the same location with a
capacity of 0.13 mn metric tonnes per annum of ethylene. It took up a major
expansion by setting up an integrated gas-based petrochemical complex at
Nagothane, 120 km from Mumbai. It also
took over an ailing catalyst and adsorbent (CATAD) unit from ACC.
Till January 1992,
the Government of India was the sole shareholder of the company.
The company’s 60%
of the equity capital was held by the Government of India, 17% by the
FII/Mutual Fund and balance 23% by the Public.
Reliance Industries
has acquired 26% of the equity stake in the company through the divestment made
by Government of India on June 4, 2002. With this disinvestments the Government
of India’s stake in the company has come down to 34%. The RPIL has made an open
offer to the shareholders of company and acquired 49.600 millions shares at a
price of Rs. 231/- per share, representing 20% of the total voting capital,
thereby increasing the equity stake to 46% in the company.
Today, subject is one of the leading petrochemical companies. Its business
comprises of polymers, synthetic fiber, fiber intermediates, solvents,
surfactants, industrial chemicals, catalysts and adsorbents. Backed by strong
Subject is the main promoter of a joint venture (JV) under the auspices of
Gujarat Chemical Port Terminal Company Limited (GCPTCL), incorporated in 1992.
The objective of this joint venture was to construct and operate a state of the
art liquid chemical handling port at Dahej. This project was promoted as a JV
with six partners. The port had been commissioned and would open up
opportunities for international trade in chemicals in a big way. In view of the
strategic importance of the port the company has increased its stake from
present 30% to 37% as part of its consolidation strategy.
Moreover the company and General Electric Plastics (GEP) BV, The
The Government of
India has directed the company to sell its' Vadodara unit to the Indian Oil
Corporation after a proper valuation of assets and at a mutually negotiated
price. The two companies, however, has not reached a consensus on the price at
which the plant should be sold and hence the same is still pending.
In pursuance of the
approval accorded by the Government of India to the formation of the joint
venture company, GEPI was incorporated on 9th December 1991 and the
Registered Office of the company was based in the State of
The company is
currently focusing on improving its performance by laying continued thrust on
supply chain management, capacity utilisation, maximising sales revenue in
terms of value and volume by strategic positioning of the products in domestic
as well as overseas markets. Emphasis is also laid on optimising the logistic
and overall productivity in the manufacturing units of the company.
The company’s main
agenda for the current fiscal was consolidation whereby it will be reviewing
its investments in non-core sector and concentrating its activities only in
chemicals and petrochemicals. In this regard the company will be offloading its
stake in GEPI and pulling out of India Vaccines Corporation Limited which is in
the business of oral vaccines since they had not contributed significant
returns to the company and there was little business synergy.
The company had
chalked out expansion plans for the next 5 years which involves capacity
addition at
However, the
company had shelved any major capex for the next two years primarily because of
two reasons. During 2002-03 the company has divested its equity in GE Plastics
India Limited. The company has made on major investment in
The company
together with Department of Biotechnology and Pasteur Merius Serums and
Vaccines, France, promited IVCOL to establish commercial production of
injectible polio Vaccines in India. After RIL had acquired management control
of the company, the IVCOL project was reviewed in depth. Since Reliance Life
Sciences Private Limited is engaged in the field of biotechnology research, it
had been decided to utilize the expertise in setting up biotechnology based
production facilities at IVCOL site. The discussions are underway with
Government of India for acquiring the management of IVCOL.
In February 2004,
Government of India has disinvested another 28.945% stake through offer for
sale. Out of 29%, 5% is reserved for Reliance group. The mode of sale : Sold
through Offer for
The company joint
venture with:
·
Gujarat
Chemical Port Terminal Company Limited
·
·
Gujarat
Industrial Investment Corporation Limited
·
·
Gujarat
Industrial Development Corporation
·
Indian
Vacines Corporation Limited
Management's Discussion and Analysis Report
Overall Review
Significantly improved business performance in conducive economic
conditions partially offset by the
Increased prices of raw materials.
In 2005-06, raw material prices for petrochemical products increased
significantly led by higher crude oil and
natural gas prices. However, strong economic conditions led to a robust
growth in the downstream industries
allowing petrochemical manufacturers to pass on a majority of the impact
of higher raw material costs on to its consumers. As a consequence, prices of
most petrochemicals products increased as compared to the previous year. Under
these conditions, operating rates of ethylene crackers continued to be high
globally on account of sustained demand and lack of new capacities. Margins for
petrochemical products were affected by higher natural gas, naphtha and propane
prices.
Subject is well positioned to benefit from the sustained cyclical
upswing in order to deliver superior returns to its
shareholders.
Amalgamation of six Polyester Companies resulting in forward integration
of petrochemicals chain.
The following six polyester companies have been amalgamated with
subject:
- Appollo
Fibres Limited (AFL)
- Central India
Polyesters Limited
- (CIPL)
- India
Polyfibres Limited (IPL)
- Orissa
Polyfibres Limited (OPL)
- Recron Synthetics Limited (RSL)
- Silvassa Industries Private Limited
(SIPL)
The amalgamation was approved by the shareholders and creditors of all
the six companies and subject. The Appointed Date of amalgamation is April 1,
2005. The Scheme of Amalgamation was sanctioned by the Hon'ble High Court of
Gujarat at Ahmedabad by its Order dated August 18, 2006. The said Order was
filed with the Registrar of Companies, Cujarat at Ahmedabad on September 27,
2006 and has thus become effective.
The exchange ratio for the equity shares as set out in the Scheme was as
under:
• Appollo Fibres Limited
- 1:25
• Central India Polyesters Limited
-1:23
• India Polyfibres Limited
-1:28
• Orissa Polyfibres Limited
-1:28
• Recron Synthetics Limited
-1:34
• Silvassa Industries Private Limited
-1:38
The Company has issued 5,24,77,176
equity shares of Rs. 10/- each to the investors of the transferor
companies in terms of and pursuant to the Scheme of Amalgamation.
Post-amalgamation, Subject’s share capital has increased from 240.000-820.000
millions equity shares to 300.700 Million
equity shares.
The Company has also allotted debentures aggregating Rs. 2689.500
Millions in terms of the Scheme to the secured creditors (including debenture
holders and bond holders) of the Transferor Companies. The Company is in the
process of creating security on these debentures and registering charge
thereon.
Superior Financial and Operating Performance
The year 2005-06 was the fourth year of Subject’s operations under the
Reliance management. The initiatives introduced to increase capacity
utilization, improve integration, reduce operating costs, improve financial
management and enhance overall productivity and efficiency have resulted in
continuous improvement in financial and operating performance on a year on year basis.
During the year, Subject’s turnover increased to Rs. 12,3620.000
Millions which is 32% higher over the previous year, and increase by more than 2
times from Rs. 5,5270.000 Millions in Financial Year 2001-02. Net Profit
increased to Rs. 1,1640.000 Millions which is 48 % higher over the previous
year. The" net profit has increased from Rs. 1070.000 Millions in 2001-02
to Rs. 1,1640.000 Millions in 2005-06, reflecting an increase of 11 times,
after Reliance acquired management control in June 2002.
Subject’s manufacturing complexes at Vadodara and Nagothane achieved the
same high level of production as in 2004- 05 without any significant variation whereas
the Gandhar Complex recorded an increase of 10% in production of major
products. As a consequence, Subject’s total production for the year was at
5,772 KTA, including the production from the merged polyester facilities.
Financial Review
Subject’s Turnover for the year ended March 31, 2006 increased to Rs.
12,3620.000 Millions, as compared to Rs. 9,3860.000 Millions in the previous
year, registering a significant growth of 32% over the previous year. Turnover
includes sale of traded products of Rs. 1170.000 Millions, compared to Rs.
680.000 Millions in the previous year registering a growth of 72%.
Net turnover for the year, excluding excise duty recovered on sales and
sale of traded products increased by 33% to Rs. 10,8050.000 Millions. The increase
reflects the impact of an increase of 4% in product selling prices and 29% in
sales volume thus showing a significant growth in demand and Subject’s market
share.
Outstanding GDR/Warrants/ Convertible Instruments
Outstanding GDRs as on March 31, 2006 represent 307114 shares
constituting 0.12% of the paid up equity share capital of the Company. There
are no other outstanding instruments, which are convertible into Equity Shares
of the Company.
Overview
The turnover for the year increased by 32 1 from Rs. 9,3860.000 Millions
to Rs. 12,3620.000 Millions (US$ 2,771 million). The highlight of the year is
the amalgamation of six polyester companies with subject resulting in forward
integration of the petrochemical chain. The Net Profit (PAT) for the
year was Rs. 1,1640.000 Millions, an increase of more than five times in last
three years.
Dividend
The Board of Directors had declared interim dividend of Rs. 5.50 (Rupee
Five and Paisa Fifty) per equity share on 24,82,25,622 equity shares of Rs. 10
each for the financial year 2005-06. The said dividend was paid to
the shareholders of the Company as on the Record Date (May 20, 2006)
fixed for the purpose. Dividend has been paid to the shareholders. The dividend
pay-out has been formulated in accordance with the Company's policy to
pay dividend linked to long term performance, keeping in view the
Company's need for capital, its growth plans
and the intent to finance such plans through internal accruals to the
maximum. Your directors believe in sustained increase in shareholder value,
eventually resulting in a higher return threshold and accordingly the Board of
Directors has considered the interim dividend paid as the final dividend for
the year ended March 31, 2006.
Scheme of
Amalgamation
Appollo Fibres Limited, Central India Polyesters Limited, India
Polyfibres Limited, Orissa Polyfibres Limited, Recron Synthetics Limited and
Silvassa Industries Private Limited (collectively the "Transferor
Companies") have been amalgamated with the Company, the Appointed
Date being April 01, 2005. The Scheme of amalgamation was sanctioned by Hon'ble
High Court of Judicature of
The amalgamation of the Transferor Companies with subject would enhance
efficiency throughout the value chain and ensure optimum utilisation of the
resources.
Pursuant to the Scheme of amalgamation, the Company has issued
5,24,77,176 new equity shares of the Company and these shares are being listed
with the Bombay Stock Exchange Limited and National Stock Exchange of India
Limited.
Fixed Assets:
Own Assets:
- Lease hold
Land
- Building
Plant and Machinery
- Railway
Sidings
- Furniture and
Fixture
- Vehicles and
Locomotives
- Jetties
AS PER WEBSITE
Subject is the pioneering petrochemical
company in
The company was managed by a board nominated by Government
of India till June 4, 2002. The Government of India as a part of its divestment
programme divested 26% of company's equity shares in favor of Reliance
Petroinvestments Ltd. through an open, transparent and competitive bidding
process. The share transfer was affected on June 4, 2002. The company is now a
new entrant to Reliance family, India's fastest growing and most admired
private sector group founded by a visionary entrepreneur late Mr. Dhirubhai H.
Ambani. Reliance has acquired additional 20% of equity shares from public
through public offer and now holds 46% of company's equity shares. The new
board has six members nominated by Reliance, two nominated by Government of
India and four independent members.
The company is the pioneering petrochemical company in
The company now is managed by Reliance Group set up by Late Mr.
Dhirubhai H. Ambani.
|
DATE |
EVENT |
|
Committee appointed by Government of India under the Chairmanship of
Dr. GP Kane. |
|
|
Committee chaired by Dr. GP Kane submits report. |
|
|
The first technology agreement was signed between President of India
and Fried Krupp G.m.b.h., Chemiean Lagenbao, Federal Republic of Germany.
This agreement was for Gujarat Aromatics Project. |
|
|
IPCL incorporated |
|
|
First logo (seal) of the company adopted in the first board meeting . |
|
|
Dr.Triguna Sen, the then Union Minister for Petroleum and Chemicals
and Mines and Metals laid the foundation stone of Gujarat Aromatics Project .
|
|
|
First technology transfer agreement was signed by IPCL Chairman cum Managing
Director with Lummus Company , |
|
|
Prime Minister, Mrs. Indira Gandhi laid foundation stone of Gujarat
Olefins Project. |
|
|
Gujarat Aromatics Project (Dimethyl Terephthalate plant) commissioned |
|
|
Gujarat Aromatics Project (Xylenes plant) commissioned |
|
|
First export of IPCL product.State Trading Corporation of India
Ltd.(STC) exported IPCL's orthoxylene through |
|
|
|
|
|
All plants of Vadodara Petrochemicals Complex Commissioned |
|
|
The Vadodara Complex was dedicated to the nation by Mr. Morarji R.
Desai, Prime Minister of India |
|
|
Government of |
|
|
The foundation stone of Nagothane complex laid by Mr. Narian Dutt
Tiwari, the then Minister of Industry, Government of |
|
|
First Bond issue totaling INR 400 million offered to public in |
|
|
IPCL strategically acquired the loss making Catalysts and Adsorbents
division of Associated Cement Companies (ACC) at Rabale, Navi Mumbai. |
|
|
Mr. Rajiv Gandhi, Prime Minister of |
|
|
Trial start up of the gas cracker at Nagothane Complex with an
alternative feed stock, namely LPG, |
|
|
IPCL enters into a joint venture with General Electric Plastic, BV
Netherlands, making it the first time a multinational ties up with a Public
Sector unit from |
|
|
IPCL was rated as the best performing petrochemical company world wide
by Chemical Insight, |
|
|
The first lot of shares sold by government of |
|
|
The final investment clearance for setting up Petrochemicals and
Chlor-Alkali complex based on gas from Gandhar oil fields at Dahej in |
|
|
After a few teething problems at Nagothane Complex, the gas cracker,
along with the low density polyethylene, mono-ethylene glycol and
polypropylene plants, were stabilized. |
|
|
Domestic public issue for 20 million equity shares of face value of
INR 10 with a premium of INR 150 in November 1992. The issue opened on
November 16, 1992 and closed on November 19, 1992, the earliest closing date,
the issue was oversubscribed by four times. |
|
|
The GDS issue for US $ 85 million opened. The issue was priced at US
13.875 per GDS, with each GDS had underlying three equity share |
|
|
IPCL Receives the prestigious Economic Times - Harvard Business School
Association of India award for outstanding over all performance for the year
1995-96 in the public sector |
|
|
IPCL receives the Sword of Honor from the British Safety Council for
its commitment to adopting high standards of safety in all its units. |
|
|
Captive jetty at Jageshwar in Narmada Estuary commissioned, first ship
carrying vinyl chloride monomer arrives. |
|
|
Caustic Soda and Polyvinyl chloride plant at Dahej (Gandhar Complex)
commissioned. |
|
|
The company offered FCCB's worth US $ 175 million, Conversion price is
US $ 13 per GDS. The first issue from |
|
|
Ethylene cracker at Nagothane Complex expanded from 300,000 MTA
ethylene to 400,000 MTA ethylene, lldPE plant to expanded from 160,000 MTA to
220,000 MTA. |
|
|
IPCL Board reconstituted with induction of four non-official part time
Directors. With this, the Board was given enhance delegation of powers,
principally, to incur capital expenditure without any monetary ceiling. |
|
|
Government of |
|
|
Government of |
|
|
IPCL became the largest producer of polyethylenes with widest range on
commissioning of 160,000 MTA high density polyethylene plant at Gandhar. |
|
|
Advertisement for inviting Expression of Interest in divestment of 25
% equity of IPCL by GOI. |
|
|
The 100, 000 MTA ethylene glycol plant at Gandhar goes on stream |
|
|
The 300, 000 MTA ethylene cracker is commissioned at Gandhar |
|
|
The Government of India decided to bifurcate IPCL by selling Vadodara
Complex to Indian Oil Corporation Limited. |
|
|
Mr. Sukhdev Singh Dhindsa, Hon'ble Minister of Chemicals and
Fertilizers dedicated Indian Petrochemicals Corporation Limited's Gandhar
Complex to the Nation. |
|
|
Government of |
|
|
Three companies Reliance, Nirma and IOC submitted their financial bids
for acquiring 26% equity from Government of India. |
|
|
Bid by Reliance Petroinvestment Ltd. was accepted by Government of
India as it was the best bid received by the Government. |
|
|
Reliance Petroinvestments Ltd. paid Rs. 1491 crore to GOI, Mr. Mukesh
D. Ambani was nominated as Chairman of the IPCL by the winning bidder. |
|
|
Mr. Mukesh D. Ambani, Chairman seeks approval for investments worth
INR 70 billion form shareholders at 33rd Annual General Meeting. |
Media Release
Mumbai, June 30, 2007 – Indian Petrochemicals Corporation Limited
(subject) announced
its audited results for the year ended 31st March 2007.
AUDITED FINANCIAL RESULTS FOR THE QUARTER/ YEAR ENDED 31st MARCH 2007
(Rs. In Millions, except per share data)
|
Sr. No. |
PARTICULARS |
9 Months Ended 31st December |
Quarter Ended 31st March |
Year Ended 31st March |
||
|
|
|
2006 |
2007 |
2006 |
2007 (Audited) |
2006 (Audited) |
|
1 |
Turnover |
103070.000 |
33880.000 |
32670.000 |
136950.000 |
123620.000 |
|
|
Less: Excise Duty Recovered on Sales |
11850.000 |
3810.000 |
3540.000 |
15660.000 |
14400.000 |
|
2 |
Net Turnover |
91220.000 |
30070.000 |
29130.000 |
121290.000 |
109220.000 |
|
3 |
Other Income |
2540.000 |
500.000 |
370.000 |
3040.000 |
1470.000 |
|
4 |
Total Expenditure (a) (Increase) / decrease in stock in trade (b) Consumption of raw materials / purchases (Including traded goods) (c) Staff cost (d) Other expenditure |
300.000 48160.000 3860.000 20130.000 |
1600.000 15340.000 1340.000 5890.000 |
130.000 14890.000 1150.000 7320.000 |
1900.000 63500.000 5200.000 26020.000 |
(2330.000) 58090.000 4550.00 28670.000 |
|
5 |
Interest |
700.000 |
130.000 |
130.000 |
830.000 |
650.000 |
|
6 |
Finance Charge on leased assets |
500.000 |
170.000 |
170.0000 |
670.000 |
700.000 |
|
7 |
Depreciation |
4110.000 |
1480.000 |
1350.000 |
5590.000 |
5610.000 |
|
8 |
Profit before tax and Extra Ordinary / exceptional and non recurring items |
16000.000 |
4620.000 |
4360.000 |
20620.000 |
14750.000 |
|
9 |
Extra ordinary/exceptional and non recurring income/(expenses) |
|
(4700.000) |
|
(4700.000) |
1200.000 |
|
10 |
Profit/(Loss) before tax |
16000.000 |
(80.000) |
4360.000 |
15920.000 |
15950.000 |
|
11 |
Provision for Current Tax |
5620.000 |
1130.000 |
850.000 |
6750.000 |
3090.000 |
|
12 |
Provision for Deferred Tax (Asset) / Liability |
240.000 |
(1390.000) |
300.000 |
(1150.000) |
1220.000 |
|
13 |
Net Profit |
10140.000 |
180.000 |
3210.000 |
10320.000 |
11640.000 |
|
14 |
Paid up Equity Share Capital, Equity Shares of Rs 10/- each. |
3020.000 |
3020.000 |
2490.000 |
3020.000 |
2490.000 |
|
15 |
Reserves excluding revaluation reserves (as per balance sheet) |
|
|
|
59670.000 |
46820.000 |
|
16 |
Earnings per share (of Rs. 10) Basic (before extra ordinary items) Basic (After extra ordinary items) Diluted (before extra ordinary items) Diluted (After extra ordinary items) |
345.300 345.300 345.300 345.300 |
162.300 6.000 166.300 6.000 |
293.400 293.400 293.400 293.400 |
499.500 343.300 511.800 351.700 |
345.000 402.900 360.300 402.100 |
|
17 |
Aggregate of non-promoter shareholding - Number of Shares (in crores) - Percentage of Shareholding |
|
|
|
158.000 525.500 |
134.000 539.700 |
Notes:
1) The figures for
the corresponding periods have been restated, wherever necessary, to make them
comparable.
2) The Scheme of
amalgamation of the company with Reliance Industries Limited (RIL) has been
approved by the shareholders and creditors of both the companies and submitted
to the Hon’ble High Court of judicature at Mumbai and
3) During the quarter,
the Company has disbursed interim dividend @ Rs. 6 per fully paid-up equity
share, aggregating to Rs. 1090.000 millions (US$ 25 Million), including
dividend distribution tax and the same has been proposed as the final dividend.
4) The company
announced a Voluntary Separation Scheme and Special Separation Scheme for the
employees of Vadodara unit in March 2007. Over 2,600 employees accepted the VRS
offered by the Company. A sum of Rs. 3760.000 millions (US$ 86 million) has
been provided for in the results of the current Quarter towards the payment of
the Separation Schemes. Further the company has also provided Rs. 940.000
millions (US$ 22 million) towards diminution in the value of investment in
equity shares of Gujarat Chemicals Port Terminal Company Limited (GCPTCL) and
Indian Vaccines Corporation Limited (IVCOL) due to the continuous erosion of
the net worth of these Companies.The above two items being extra ordinary,
exceptional and non-recurring in nature, has been included as part of extra
ordinary items.
5) The
6) Pursuant to the
adoption of Accounting Standard on Employee Benefits (AS-15) (Revised 2005)
issued by the Institute of Chartered Accountants of India, additional liability
of Rs. 480.000 millions (US$ 11 million) up to 31st March 2006 net of deferred
tax of Rs 160.000 millions (US$ 4 million) has been adjusted against the
opening balance of revenue reserves. The additional charge on account of the
above is Rs 240.000 millions (US$ 6 million) for the year.
7) Provision for
current tax includes provision for Fringe Benefit Tax (FBT) of Rs. 970.000
millions (US$ 0.22 million) for the quarter and Rs. 3.590.000 millions (US$
0.83 million) for the year ended 31st March 2007.
8) The Company is
a Petrochemicals manufacturing company. All other activities of the company
revolve around the main business. As such, there are no separate reportable
segments, as defined by AS-17 (Segment Reporting) issued by the Institute of
Chartered Accountants of India. The Capital employed as on 31st March 2007 was
Rs. 8,5420.000 millions (US $ 1,965
million). The Net worth and total assets as on 31st March 2007 was Rs.6,2680.000
millions (US$ 1,442 million) and Rs. 12,0800.000 millions (US$ 2,779 million)
9) There was no
complaint from Investors pending re-dressal as on 1st January 2007. The numbers
of complaints received during the quarter ended March 31, 2007 were 937. All
complaints were disposed off during the quarter. No complaint was pending on
March 31, 2007.
10) The Statutory
Auditors of the Company have audited the results for the year ended 31st March
2007.
11) The above
statement has been reviewed by the audit committee and placed before the Board
of Directors at
the Board meeting held on 30th June 2007 approved the above results and its
release.
Subject Board to
Meet on June 30 for FY 2007 Results
Mumbai, June 22,
2007: The Board of Directors of subject
will meet on Saturday June 30, 2007, to consider and approve the audited
financial results of the company for the quarter and year ended March 31, 2007.
A notice to this effect has already been sent to the Stock Exchanges. Subject,
now member of Reliance group,
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.40.47 |
|
|
1 |
Rs.82.08 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|