MIRA
INFORM REPORT
|
Report Date : |
25.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
NAGARJUNA
FERTILIZERS AND CHEMICALS LIMITED |
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Registered
Office : |
Nagarjuna Hills,
Panjagutta, |
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Country : |
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Financials (as
on) : |
31.03.2006 |
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Date of
Incorporation : |
28.01.1976 |
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Com. Reg. No.: |
01-1983 |
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CIN No.: [Company
Identification No.] |
L24129AP1976PLC001983 |
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TAN No.: (Tax Deduction
& Collection Account No.) |
HYDN00018E |
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PAN No.: (Permanent
Account No.) |
HYDN00583C |
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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 : |
Manufacture and |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 73500000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part
of Nagarjuna Group, a diversified and progressive industrial house of Andhra
Pradesh. Trade relations are fair. General financial position is
satisfactory. Payments are reported as slow but correct. The company can
be considered for normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
Nagarjuna Hills,
Panjagutta, |
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Tel. No.: |
91-40-2335 2063 /
3495 / 7204 /1374 / 7200 / 5317 |
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Fax No.: |
91-40-2335 0282 /
4660 / 4788 / 0247 |
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E-Mail : |
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Website : |
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Telex : |
0425-6538 NSL IN |
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Factory 1 : |
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Branches : |
Corporate
Affairs, |
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Tel. No.: |
91-824-2456806 /
816 |
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Fax No.: |
91-824-2454416 /
457 |
DIRECTORS
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Name : |
Mr. Sam Manekshaw |
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Designation : |
Chairman |
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Name : |
Mr. K S Raju |
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Designation : |
Vice Chairman & M.D. |
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Name : |
Mr. P P Singh |
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Designation : |
Director (Technical) |
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Name : |
Mr. R S Nanda |
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Designation : |
Director |
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Name : |
Mr. K Rahul Raju |
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Designation : |
Director |
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Name : |
Mr. N C B Nath |
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Designation : |
Director |
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Name : |
Mr. V N Rai |
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Designation : |
Alternate Director |
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Name : |
Mr. S R Ramakrishnan |
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Designation : |
Director |
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Name : |
Mr. R Krishnan |
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Designation : |
Director |
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Name : |
Mr. Ashok Chopra |
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Designation : |
Nominee |
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Name : |
Mr. Chandra Pal Singh Yadav |
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Designation : |
Nominee (KRIBHCO) |
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Name : |
Mr. R K Chavali |
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Designation : |
Nominee (IFCI) |
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Name : |
Mr. K M Jaya Rao |
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Designation : |
Nominee (ICICI) |
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Name : |
Mr. M P Radhakrishnan |
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Designation : |
Nominee (SBI) |
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Name : |
Mr. B K Batra |
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Designation : |
Nominee (IDBI) |
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Name : |
Mr. Vishwanath Mathur |
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Designation : |
Nominee of (UTI) |
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Name : |
Mr. M Ramakanth |
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Designation : |
Company Secretary |
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Name : |
Mr. D Lakshmi Parthasarathy |
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Designation : |
Nominee (Andhra Pradesh Government) |
SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
PROMOTERS
HOLDINGS |
150874528 |
35.24 |
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NON-PROMOTERS
HOLDINGS |
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Institutional
Investors |
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Mutual Funds and UTI |
4732150 |
1.11 |
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Banks Financial Institutions,
Insurance Companies [Central / State Government Institutions / Non –
Government Institutions] |
19009447 |
4.44 |
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Foreign Institutional Investors |
25004323 |
5.84 |
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Other
Investors |
|
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Private Corporate Bodies |
64102022 |
14.97 |
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Indian Public |
160875662 |
37.57 |
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NRI’s/OCB’s |
3583689 |
0.83 |
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Any Other |
-- |
-- |
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TOTAL |
428181821 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture and |
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Products : |
Ř
Urea Ř
Pesticides
(in Litres) Ř
Lease
Rental Income |
PRODUCTION STATUS
|
Particulars |
Unit |
Actual
Production |
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Ammonia |
MT/Day |
1800 |
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Urea |
MT/Day |
3000 |
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Extruded Irrigation
Systems & Parts thereof |
Lakh Mtrs/ Annum |
295 |
GENERAL INFORMATION
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No. of Employees : |
1000 |
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Bankers : |
State Bank of |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M. Bhaskara Rao
& Company Chartered
Accountants |
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Address : |
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Memberships : |
Confederation of
Indian Industry |
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Subsidiaries : |
Ř
Jaiprakash
Engineering and Steel Company Limited Ř
Pennar
Refineries Limited Ř
Nagarjuna
Oil Corporation Limited M D Chambers, 31,
Radhakrishna Salai, Mylapore, Chennai – 600 004, Tamilnadu Tel. No.: 91-44-2821 0803 / 804 Fax No.: 91-44-2821 0858 Contact Person : Mr. K. S. Raju, Chairman Email : ksraju@nagarjunagroup.com |
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Group
Companies : |
Ř
Vijayalakshmi
Insecticides & Pesticides Limited (VIPL) Plot # 61, 1st Floor, Nagarjuna Hills, Tel. No.: 91-40-2335 0235 / 8217 Fax No.: 91-40-2335 8062 Contact Person : Mr. G. S. Raju, Director Email : gsraju@nagarjunagroup.com
Ř
Nagarjuna
Agrichem Limited (NAL) Plot # 61, 2nd Floor, Nagarjuna Hills, Tel. No.: 91-40-2335 0235 / 8217 / 7422 Fax No.: 91-40-2335 0234 Contact Person : Mr. G. S. Raju, Director Email : gsraju@nagarjunagroup.com
Ř
Nagarjuna
Agricultural Research & Development Institute (NARDI) Plot # 61, Nagarjuna Hills, Tel. No.: 91-40-2335 1462 Fax No.: 91-40-2335 0234 Contact Person : Mr. G. S. Raju, Director Email : gsraju@nagarjunagroup.com
Ř
Nagarjuna
Power Corporation Limited (NPCL) 9\1 Tel. No.: 91-80-2227 3611 / 2221 3989 Fax No.: 91-80-2221 3993 Contact Person : Mr. K. S. Raju, Chairman Email : ksraju@nagarjunagroup.com
Ř
Nagarjuna
Investor Services Limited (NISL) Plot # 1, 1st Floor, Nagarjuna Hills, Tel. No.: 91-40-2335 8405-8 Fax No.: 91-40-2335 0714 Contact Person : Mr. R.V. Krishnan, Chief Executive Officer Email : krishnanrv@nagarjunagroup.com
Ř
K V K
Plot # 56, Nagarjuna Hills, Tel. No.: 91-40-2335 0772 / 0770 Fax No.: 91-40-2335 4788 Contact Person : Mrs. Renuka Raju Email : krenukaraju@nagarjunagroup.com
Ř
Nagarjuna
Foundation Nagarjuna Hills, Tel. No.: 91-40-2335 7500 -204 Contact Person : Mrs. Renuka Raju Email : krenukaraju@nagarjunagroup.com Ř
Lakshmi
Memorial Cancer Research Foundation (LMCRF) Plot # 24, Nagarjuna Hills, Tel. No.: 91-40-2335 6638 / 4788 Contact Person : Dr. Suryanarayana Raju Ř
ASRAM Alluri Sitarama Raju Educational Society Plot # 24, Nagarjuna Hills, Tel. No.: 91-40-2651 0345 Fax No.: 91-40-2335 2403 Contact Person : Prof. Venkatarama Raju, Principal Dr. M. D. Marker, Director – Hospital Services ASRAM, Eluru – 534 004, Andhra Pradesh Tel. No.: 91-8812-238536 (D) \ 238543 Ř
Ikisan
Limited Plot # 1, Nagarjuna Hills, Tel. No.: 91-40-2335 0671 Fax No.: 91-40-2335 8153 Contact Person : Mr. P. P. Singh Email : ppsingh@nagarjunagroup.com
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
600,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 6000.000 millions |
|
20,000,000 |
Preference Shares |
Rs. 100/- each |
Rs. 2000.000 millions |
|
|
Total
|
|
Rs. 8000.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
428181821 |
Equity Shares |
Rs. 10/- each |
Rs. 4281.818 millions |
|
3720372 |
Ordinary Redeemable Preferences Shares |
Rs. 100/- Each |
Rs. 372.037 Millions |
|
|
Total |
|
Rs. 4653.855 Millions |
|
Subscribed
& Paid-up Capital |
|
|
|
|
428181821 |
Equity Shares |
Rs. 10/- each |
Rs. 4281.818 millions |
|
|
Calls in arrears |
|
Rs. (2.219) |
|
3720372 |
Ordinary Redeemable Preferences Shares |
Rs. 100/- Each |
Rs. 372.037 Millions |
|
|
Total |
|
Rs. 4651.636 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 |
4651.636 |
4649.700 |
4166.079 |
|
|
3] Reserves &
Surplus |
13795.360 |
14020.000 |
4422.848 |
|
NETWORTH
|
18446.996 |
18669.700 |
8588.927 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
14017.598 |
14492.400 |
16249.101 |
|
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2] Unsecured
Loans |
515.147 |
447.000 |
392.078 |
|
TOTAL BORROWING
|
14532.745 |
14939.400 |
16641.1790 |
|
|
DEFERRED TAX
LIABILITIES |
2543.590 |
0.000 |
3342.067 |
|
|
|
|
|
|
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TOTAL
|
35523.331 |
33609.100 |
28572.173 |
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APPLICATION OF FUNDS
|
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|
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|
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FIXED ASSETS [Net Block]
|
23995.844 |
25941.400 |
12922.459 |
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Capital work-in-progress
|
0.000 |
151.000 |
0.000 |
|
|
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|
|
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INVESTMENT
|
6791.227 |
6644.400 |
7101.816 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
440.835 |
|
|
|
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CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
577.620
|
762.000
|
615.747 |
|
|
Sundry Debtors
|
3112.431
|
2217.100
|
3538.391 |
|
|
Cash & Bank Balances
|
608.400
|
192.200
|
146.399 |
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances
|
2452.991
|
1816.400
|
4481.683 |
Total Current Assets
|
6751.442
|
4987.700
|
8782.220 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
(1480.257)
|
4045.900
|
755.830 |
|
|
Provisions
|
(534.925)
|
69.500
|
22.421 |
Total Current Liabilities
|
2015.182
|
4115.400
|
778.251 |
|
Net Current Assets
|
4736.260
|
872.300
|
8003.969 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
103.094 |
|
|
|
|
|
|
|
TOTAL
|
35523.331 |
33609.100 |
28572.173 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other
income]
|
14733.858 |
13219.500 |
11149.223 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
535.522 |
552.500 |
(182.373) |
Provision for Taxation
|
|
257.200 |
356.755 |
Profit/(Loss) After Tax
|
668.520 |
295.300 |
174.382 |
|
|
|
|
|
|
Import Value |
694.736 |
217.925 |
NA |
|
|
|
|
|
Total Expenditure
|
14198.336 |
13219.500 |
8774.215 |
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 |
|
Type |
|
|
Full
Year |
|
Sales Turnover |
|
|
18152.400 |
|
Other Income |
|
|
279.900 |
|
Total Income |
|
|
18432.300 |
|
Total Expenditure |
|
|
15353.100 |
|
Operating Profit |
|
|
3079.200 |
|
Interest |
|
|
1377.900 |
|
Gross Profit |
|
|
1701.300 |
|
Depreciation |
|
|
1240.900 |
|
Tax |
|
|
438.200 |
|
Reported PAT |
|
|
317.100 |
|
Dividend (%) |
|
|
00.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.67 |
1.94 |
2.29 |
|
Long Term Debt-Equity Ratio |
1.50 |
1.80 |
2.06 |
|
Current Ratio |
1.00 |
1.48 |
1.72 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.51 |
0.50 |
0.47 |
|
Inventory |
21.71 |
18.45 |
8.83 |
|
Debtors |
5.46 |
4.42 |
2.99 |
|
Interest Cover Ratio |
1.41 |
1.27 |
0.84 |
|
Operating Profit Margin(%) |
21.01 |
23.81 |
31.15 |
|
Profit Before Interest And Tax Margin(%) |
12.69 |
14.27 |
19.91 |
|
Cash Profit Margin(%) |
12.92 |
11.17 |
10.81 |
|
Adjusted Net Profit Margin(%) |
4.60 |
1.62 |
-0.43 |
|
Return On Capital Employed(%) |
7.83 |
7.59 |
8.57 |
|
Return On Net Worth(%) |
7.95 |
2.61 |
-0.61 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 11.79/- |
|
Low |
Rs. 11.50/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Nagarjuna
Fertilizers and Chemicals (NFCL) was incorporated on 28.01.1976. It was originally
promoted by the Shaw Wallace group, and later taken over by the Government of
Andhra Pradesh. Finally, it was taken over by the Nagarjuna group. The company
came out with a public-cum-rights issue of secured PCDs in October 1992, to
part-finance the company's project set up at
NFCL received the ISO 9002 certification in 1994. In 1994-95, Sri Ganesh Anand
Petrochemicals was merged with NFCL. In 1995-96, the company promoted Nagarjuna
Agricultural Research and Development Institute, a research and development
organization to undertake application and adaptive research in production,
improvement and protection of crops.
During 1996-97, NFCL signed a Joint Venture Agreement with Haifa Chemicals
Limited,
In 1998-99, Nagarjuna Oil Corporation Limited (formerly Pennar Refineries
Limited) which had setup up a 6 MTPA refinery project at Cuddalore, Tamilnadu
became a wholly owned subsidiary of the company. NOCL is in the process of
tying up the balance of equity for achieving financial closure. It has got
necessary approvals for the implementation of the project. The company has
invested over Rs.5569.30 millions as on March 2003.
During 2002 the board has decided to merge the company with Nagarjuna
Corporation Limited with a swap ratio of 1:1. It is in the process of obtaining
necessary approvals go give effect to the scheme of merger. NPCL is
implementing the 1015 MW Power Plant at Mangalore in Karnataka. The total
amount invested for the power project till March 2003 was around Rs.642.40
millions.
DIVIDEND
The directors after careful consideration of the accounts of the company have
not recommended any dividend to the equity shareholders of the company.
The directors recommend 0.01% dividend to the preference shareholders of the
company for the year ended 31.03.2006 amounting to Rs.0.037 Millions.
SHARE CAPITAL
The company had issued 37.20.372 0.01% coupon optionally cumulative convertible
redeemable preference shares of Rs.100/- each to the financial institutions in June
2004. The 0.01% coupon optionally cumulative convertible redeemable preference
shares shall now remain as ordinary preference stares.
During the year the company allotted 1.11,61,228 equity shares of Rs.10/- each
at par to the shareholders of erstwhile Nagarjuna Palma India Limited which was
amalgamated with the company with effect from 01.10.2004 pursuant to the scheme
of amalgamation approved by the Honourable High Court of Andnra Pradesh.
PLANT OPERATIONS
Straight Nutrition Business:
The company during the year manufactured 1.379 Millions MTs of Urea as against
1.393 Millions MTs in the previous year. Both the plants of the company
continue to perform at high levels of energy efficiency with the overall energy
being below that of the previous year. The supply of natural gas and naphtha
was satisfactory during the year though the company would benefit from
availability of additional natural gas.
The company has taken various initiatives to improve energy efficiency, enhance
plant reliability, improve product quality and reduce costs. In order to
maximise the stream days and avoid unforeseen shut downs to the plant, the
company as a regular feature had been conducting plant health checks to
ascertain the condition of the various equipments. The company has been
assisted by acclaimed consultants in the area and based on their
recommendation, the company has initiated remedial actions. The action taken
has yielded results, which can be seen in the adequate stability in the plant
operations of the company. The company subject to the approval of the
Government of India is proposing to revamp the plants in order to facilitate
increase in capacity and improve energy efficiency. The company has engaged the
services of Haldor Topsoe for ammonia plant and Snamprogetti for urea plant to
undertake a study on the techno-economic-feasibility for the proposed revamp of
the plants.
Nutrition Solution Business:
The company in line with its vision statement has made forays into new
businesses like micro irrigation and speciality fertilizers.
Micro Irrigation: The company in the past has faced hardships in relation to
recoveries in view of the Micro Irrigation business being government subsidy
driven. Under these pressing circumstances, there has been stability in
operations of the Micro Irrigation business.
The company has been attempting to increase its exposure to the non-subsidy
sector, which is highly competitive with pressures on margins.
The company would consider repositioning itself in the Micro Irrigation
business, keeping in view the returns expected out of this business.
Speciality Fertilizers:
The company has taken the initiative of educating and providing necessary
support to the farmers in Andhra Pradesh, of the benefits of utilising
speciality fertilizers. In this regard, the company has demonstrated in its
pilot projects, the practices to be followed to achieve higher production
through the application of fertilizers by adopting standard operating practices
as well as benefiting from the use of non traditional speciality
fertilizers.
The combination of providing micro irrigation systems coupled with speciality
fertilizers would help to meet the scarce water resources in the country and
increase farm productivity.
MARKETING:
Straight Nutrition Business:
During the year under review, the company recorded urea sale of 1.467 Millions
MTs as ainst the previous years urea sale of 1.563 Millions MTs.
The company during the year handled 38,418 MTs of imported urea on behalf of
the Government of India.
The company taking advantage of the favourable agri climatic conditions and
good rainfall has been able to market all its manufactured and imported urea.
The good seasonal conditions resulted in the inventory levels being regularly
negligible, putting the market channel to tremendous strain.
The company keeping in line with the corporate vision, launched a major
initiative in the direction of supplying micro nutrients in various forms to
the farmers.
The company also successfully launched 'Zeta', a high value micro nutrient and
also marketed Zinc Sulphate, MOP and other fertilizers.
Nutrition Solution Business:
Micro Irrigation:
The company has during the year increased its sales in Andhra Pradesh, Gujarat and
other states and achieved a turnover of Rs.1.666 Millions (previous half year
Rs.68.200 Millions from date of amalgamation) consequent to the fillip given to
micro irrigation business in the country.
The company has also during the year launched various new micro irrigation
products to meet the demands of the farmers and commenced operations in Madhya
Pradesh, Rajasthan and Kerala.
Speciality Fertilizers:
During the year under review, the company has sold 5543 MTs of speciality
fertilizers registering Rs.242.400 Millions of turnover (previous year
Rs.100.1000 Millions), which shows a growth rate of 142% compared to the
previous year.
The company, during the year launched the Nagarjuna 'Double Ox' brand to sell
the various non-urea products of the company namely MAP, MKP, CN-FG, SOP and
CN-SG.
Awards:
Some of the prestigious awards received by the company during the year
are
1. FAI Environment Protection Award in the Nitrogenous Fertilizers Plants
category for the year 2004-05.
2. Award for excellence in natural gas conservation in the fertilizer sector
category for the outstanding contribution to natural gas conservation during
the year 2004-05 from Gas Authority of India Limited.
3. Commendation prize awarded on the occasion of First National Convention on
'Energy Conservation Initiatives', organised by Andhra Pradesh Productivity
Council,
4. Highest possible rating of 5 Star in the OHS Audit conducted by British
Safety
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY SCENARIO AND DEVELOPMENT
The role of agriculture in the growth of Indian economy has been well settled.
The growth and development of Fertilizer Industry have been linked to the
performance of the agriculture sector. The Fertilizer Industry over the years
has been able to live upto the expectations of increased production and supply
of fertilizers to meet the demands of agriculture.
Enhancement of agricultural growth is essential for achieving overall GDP
growth rate of 8-10% and improved productivity is critical for achieving
accelerated agricultural growth rate.
Low productivity has afflicted the Indian agriculture and the yield per hectare
is lower compared to that of the neighboring and other countries.
Agriculture sector share in the GDP has been falling while the rate of capital
formation in the sector has also been declining due to stagnation and fall in
investment.
Agricultural production in 2005-06 were normal in view of the normal rainfall.
Further the agriculture sector growth during the year 2005-2006 has been at
2.3%. The main concern has been the declining productivity in the agriculture
sector. The need of the hour is to increase agriculture yield in order to cater
to the growing needs of the economy.
The President of
The monsoon 2005 spread was not uniform but the weighted rainfall was at 99% as
compared to the previous year. This gave a fillip to the agriculture. The low
and volatile growth rate in the agriculture and allied sectors was reflected in
the average annual growth rate declining from 4.7% during the 8th plan to 2.2%
during the 9th plan.
During the year 2005-2006 the sales volume of fertilizers registered a healthy
growth over the corresponding period of the previous year due to good monsoon.
The sales of N, P & K increased by 8.8%, 14.9% and 16.3% respectively. This
was despite the fact that there was only a marginal increase in the urea
production due to capacity constraint. The production of DAP fell short by 1.45
Million Tonnes. The shortfalls of urea and DAP were met through larger
imports.
The revenues of fertilizers produced increased following high realisation due
to increased cost of feed stock though operating margins were under pressure
due to rise in input cost and the government policy continued to influence the
profitability of the industry.
The subsidy on urea during 2005-2006 for the company was estimated at
Rs.11539.000 Millions and the increase was attributed to steep increase in the
price of feed stock and raw material and the strain was likely to continue
during the year.
The Finance Act, 2006 has not caused any impact on the Fertilizer sector but
has definitely caused strain on the distribution of subsidy in view of the
fertilizer subsidy for the fiscal year 2005-2006 likely to exceed Rs 240000.000
Millions against a budget estimate of Rs.152500.000 Millions.
One of the main reasons for the increase in subsidy has been the selling price
which has remained constant with negligible increase though there has been substantial
increase in input cost due to steep increase in prices of Naphtha and gas which
are the raw materials for manufacture of urea.
The delayed receipt of subsidy reimbursement from the government has impacted
the financial position of the company due to the additional interest
burden.
The erstwhile individual unit oriented retention price in respect of urea had
been replaced in stages by a group based pricing scheme with effect from April
2003 and April 2004. The Department of Fertilizers has constituted a working
group under the Chairmanship of Dr. Y K Alagh to look into the new 3rd stage of
pricing policy, which is effective from 01.04.2006.
The draft proposals of the third phase of the pricing policy circulated to the
various companies in the industry has not been encouraging with a further
likely drop in the reimbursement of subsidies. This would adversely impact the
company with a likely reduction in disposable profits.
The non-availability of adequate quantity of natural gas and the high cost of
naphtha has also burdened the company's financials.
The company’s fixed assets of important value include land, building, roads,
drains and culverts, railway siding, plant and machinery, furniture, fixtures
and office equipment, plant and machinery (leasehold) and vehicles
Press Releases
NFCL Facility Achieves 113% Urea
Production
The
The Plant also has achieved this record production at a very optimal
utilization of energy of 5.662 MKcal/MT of Urea against internal target of
5.670Mkcal/MT, which is already much lower than the standard Fertilizer
Industry Coordination Committee’s (FICC) norm of 5.712 MKcal/MT. NFCL has
one more reason to celebrate that full production of Urea i.e. 1.379 million
Metric Tonnes has been dispatched to the farmers.
Along with the production, NFCL
has also done well in sales and distribution wings. It’s products, which
include Mahazinc, Zinc Sulphate, Zeta, Speciality Fertilizers besides Urea have
been sold out fully during 2005-06.
NFCL wins Gas Conservation Award
from GAIL
Fertilizer facility of Nagarjuna
Fertilizers and Chemicals Limited in
This annual award has been
instituted by Gas Authority of India Limited (GAIL) as a recognition of the
excellent work done by the organisations in Gas Conservation. GAIL has been
conducting a nation-wide Natural Gas Conservation Programme, meant to spread
the word of conservation of this precious natural resource. All the natural gas
using industries like power, fertilizer, steel, sponge iron, transport, glass,
ceramic and petrochemicals, would be considered for this award.
This is the 4th achievement of
NFCL for it’s excellence in different departments during 2005. These include; 5
Star rating in O H & S Audit from British Safety Council,
NFCL wins the prestigious
Environment Protection Award from the Fertiliser Association of
Nagarjuna Fertilizers and
Chemicals Limited (NFCL) the flagship company of the Nagarjuna Group has won
the prestigious FAI (Fertiliser Association of India) Environment Protection
Award in the Nitrogenous fertilizer plants category for the year 2004-05. NFCL
had won the same award for 2001-02 also. Going much beyond the statutory
requirements of law for environment protection, NFCL has implemented a
comprehensive protection plan in its plant at
NFCL has also won two more
awards from FAI. A video film titled “The Sugarcane” produced by NFCL was
adjudged Runner-up in the Annual Video Film Competition by FAI for the year
2004 – 2005. The video film has been developed with the objective to transfer
technology and to enhance the yield of sugarcane farmers in Andhra Pradesh. For
NFCL, this is the second consecutive year of winning in this category. An
article titled "From Products to Solutions - Exploring Opportunities"
published in the September 2005 Issue of the Indian Journal of Fertilizers was
awarded the Second prize in the category of Shriram Award for Best Article in
Marketing. The article was co-authored by Mr. N Sambasiva Rao, Head - SNB
Marketing and Mr. Gyanendra Narayan Pati, Asst. Manager (Sales Planning).
The Awards were presented by
Shri Ram Vilas Paswan, Hon’ble Union Minister for Steel, Chemicals and
Fertilizers, Government of India, at the inaugural function of the FAI Golden
Jubilee Celebrations and Annual Seminar in
Bureau Veritas Quality
International (BVQI) awards re-certification of ISO 9001 : 2000 for Nagarjuna
Fertilizers and Chemicals Limited.
Nagarjuna Fertilizers and
Chemicals Limited (NFCL) has been re-certified of ISO 9001:2000 by Bureau
Veritas Quality International (BVQI), for its Quality Management Systems. The
Flagship Company of the Nagarjuna Group has already been an ISO 9001: 2000
organisation since 1995. This re-certification, which is valid up to February
2008, is only an extension of recognition for company’s excellent quality
management systems.
BVQI team has done the
re-certification audit during February at NFCL plant
BVQI is today the most widely
recognized certification body in the world, offering solutions in the key
strategic fields of companies operations: Quality, Health & Safety,
Environment and Social Responsibility. It is recognized by more than 30
national and international accreditation bodies across the world to deliver ISO
9001 certification. As a consequence, BVQI is a world leader with over 50,000
certified companies in 100 countries with a team of 2,800 specially trained
auditors. BVQI offers the possibility of combined certifications to the largest
range of recognized standards, bringing consistency, optimization and
efficiency.
Nagarjuna Fertilizers and Chemicals Limited
Awarded the prestigious 5 Star Rating by the British Safety Council,
Nagarjuna Fertilizers and
Chemicals Limited (NFCL), the flagship company of the Nagarjuna Group has been
awarded the highly coveted 5-Star rating by the British Safety Council,
According to Mr. R S Nanda,
Director and Chief Operating Officer, "This indeed is a testimony to their
unstinted efforts to bring world class practices of safety, health and
environment to their plant at
Though they have always been
committed for having the highest levels of health and safety management
systems, such an internationally acclaimed independent certification has
reinforced their belief in following the best practices. Striving for
Excellence in every area of their operation, as a next milestone, they would
very much like to attain the 'Sword of Honour' in the coming days."
The British Safety Council (BSC)
is one of the world's leading occupational health, safety and environmental
organisations. BSC's Five Star Health and Safety Management System Audit is a
benchmark for best practices. It provides a detailed examination of the
organisation's current practices, and gives a comprehensive report and plan for
implementing, monitoring and achieving continuous improvement. It is based on
the Business Excellence Model and goes beyond HS(G)65 and OHSAS 18001 to
measure how far an organisation has gone towards achieving best practice.
KVK
Pragathi Rythu Sanmanotsavam
Nagarjuna
Group is a dream brought into reality by Shri KVK Raju, a first generation
entrepreneur from Andhra Pradesh. Shri KVK Raju was a visionary with firm
belief in his mission to "serve society through industry". It is this
belief, which continues to be the guiding light of Nagarjuna Group that
pioneered several core sector enterprises like Fertilizers, Energy and
Petroleum.
Nagarjuna Fertilizers and Chemicals Limited (NFCL) the flagship company of the
Nagarjuna Group commissioned the first Gas based fertilizer plant in South
India at
Nagarjuna entered the plant protection business in 1994 and within a short span
of time the company has grown to become one of the top five plant protection
companies in
Nagarjuna Group started Micro irrigation business in collaboration with Israeli
companies. Nagarjuna is shouldering the responsibility in the Andhra Pradesh
Micro Irrigation Project (APMIP) towards delivering effective water management
solutions to the farmers of Andhra Pradesh. Nagarjuna is also the first company
to introduce the concept of water soluble fertilizers in
As part of its mission, the group is actively involved in the Micro nutrient
segment by supplying high quality products like Mahazinc (Zinc Monohydrate):
450 MT, Zeta (Zinc EDTA): 150 MT, Groth (Formula 4): 100 MT and Borovin
(Boron): 25 MT. Nagarjuna is also sharing the responsibility of distributing
Zinc Sulphate under the State Government's subsidy scheme to the farming
community.
Nagarjuna is currently supplying about 50% of the State's annual urea
requirement of 2 million tons. Nagarjuna has been nominated as the Lead
Fertilizer Supplier (LFS) by the Government of India in Andhra Pradesh, Orissa
and
Apart from the efforts of both State and Central Governments, the fertilizer
industry is also playing an important role in transferring technology to the
farmers. Nagarjuna has taken service to the farmer as a mission since its
inception in 1985 and has earned a strong brand image in Andhra Pradesh and has
since become a part of the farming community of the state.
As a step towards providing a platform to facilitate technology transfer to
farmers KVK KRISHI VIGNANA KENDRAM (KVK) was set up at
Since its' inception, the KVK centre has trained more than 48000 farmers from
about 416 villages covering all the districts of Andhra Pradesh. Nagarjuna
encourages the KVK trained farmers to act as a guide to his fellow farmers by
sharing their experiences through verbal communication and practice enabling
knowledge dissemination and improvement in farm productivity in a short span of
time.
The KVK centre organizes training programs both On-campus and Off-campus. In
On-campus programs, the selected progressive farmers are brought to the centre
in
The company has undertaken several extension activities for the benefit of the
farming community. A wide range of technical crop films on paddy, sugarcane,
maize, cotton, chilli and benefits of Zinc usage in crops have been developed
over the past few years enabling the concept of "Seeing is
Believing". The films on Zinc, Sugarcane and Chilly have been adjudged for
awards by the Fertilizer Association of India consecutively for the past three
years. Programs like crop seminars, demonstrations, film shows, soil analysis
etc are extensively organized for transferring enabling technology to the
farmers. Tools like LCD projectors, Slide projectors, AV vans, flip charts,
crop literature etc are widely used for effective communication.
Nagarjuna is strongly committed to the well being of the farming community of
the state and will continue its efforts towards achieving this objective.
NFCL is organizing KVK Pragathi Rythu Sanmanotsavam, to felicitate farmers who
were trained at KVK Krishi Vignana Kendram and who have played an important
role in improving farm productivity and knowledge sharing. The programme will
be held on Friday 10th November 2006 at 10 am in NFCL premises,
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.40.30 |
|
|
1 |
Rs.82.97 |
|
Euro |
1 |
Rs.55.64 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
|
43 |
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 |
|