MIRA
INFORM REPORT
|
Report Date : |
16.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
DEEPAK
FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED |
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Registered Office : |
Opposite
Golf Course, Shastri Nagar, Yerawada, Pune – 411 006, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
31.05.1979 |
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Com. Reg. No.: |
11-21360 |
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CIN No.: [Company
Identification No.] |
U24121MH1979PLC021360 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD10002G |
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PAN No.: [Permanent
Account No.] |
AAACD1388D |
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Legal Form : |
It is
a public limited liability company. The
company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing
of Ammonia, Methanol, Nitric Acids (in various concentrations), Low Density
Prilled Ammonium Nitrate (Explosive Grade) and Nitrophosphate Fertilisers, Chemical
Fertilisers containing Nitrates and Phosphates (Nitrophosphates / Ammonium
Nitrate Phosphate), Organic Chemicals, Acrylic Alcohols, Methyl Alcohol and
Ammonium Nitrate. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 25418400 |
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Status : |
Very 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 having satisfactory track. Directors are reported as experienced,
respectable and resourceful industrialists.
Their trade relations are reported as fair. General financial position is satisfactory. Payments are usually correct and as per
commitments. The
company can be considered normal for your business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
Opposite Golf Course, Shastri Nagar, Yerawada, Pune – 411
006, Maharashtra, India |
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Tel. No.: |
91-20-26684155/26684342/26684597/26684235/26458000 |
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Fax No.: |
91-20-26687499/26683727 |
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E-Mail : |
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Website : |
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Factory : |
Plot No.
K-1, MIDC Industrial Area, Taloja, A. V. – 410 208, District Raigad,
Maharashtra |
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Tel. No.: |
91-22-27412411/2412/27412810/11/12 |
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Fax No.: |
91-22-27412413 |
DIRECTORS
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Name : |
Mr. C. K. Mehta |
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Designation : |
Chairman |
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Qualification : |
Undergraduate |
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Date of Appointment : |
31.05.1979 |
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Other
Directorships :- |
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Name : |
Mr. D. C. Mehta |
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Designation : |
Director |
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Qualification : |
B.
Sc. |
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Date of Appointment : |
31.05.1979 |
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Other
Directorships :- |
·
Deepak
Nitrite Limited ·
Nova
Synthetic Limited ·
Skyrose
Finvest Private Limited ·
Sundown
Finvest Private Limited ·
Forex
Leafin Private Limited ·
Pranawa
Leafin Private Limited ·
Hardik
Leafin Private Limited ·
Samoon
Investment and Finance Private Limited ·
The
Lakaki Works Private Limited |
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Name : |
Mr. S. C. Mehta |
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Designation : |
Vice
Chairman and Managing Director |
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Qualification : |
B.
Com., M.B.A. (U.S.A.) |
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Date of Appointment : |
04.09.1985 |
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Other
Directorships :- |
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Name : |
Mr. D. Basu |
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Designation : |
Director |
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Qualification : |
Master’s
Degree in Economics |
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Date of Appointment : |
27.07.2000 |
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Other
Directorships :- |
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Experience : |
Mr. S. S. Marathe |
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Date of Appointment : |
Director |
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Name : |
Mr. R. A. Shah |
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Designation : |
Director |
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Name : |
Mr. A. C. Mehta |
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Designation : |
Director |
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Qualification : |
B.
Sc. (Hons) M. S. Chemical Engineers (USA) |
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Date of Appointment : |
22.05.2003 |
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Other
Directorships :- |
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Name : |
Mr.
N. C. Singhal |
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Designation : |
Director |
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Name : |
Mr. U. P. Jhaveri |
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Designation : |
Director |
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Name : |
Mr. S. R. Wadhwa |
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Designation : |
Director |
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Name : |
Mrs. Parul S.
Mehta |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Aioke
Sengupta |
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Designation : |
(Nominee of IDBI) |
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Name : |
Dr. T. K.
Chatterjee |
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Designation : |
Chief Operating
Officer |
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Name : |
Mr. N. D. Joshi |
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Designation : |
Chief Financial
Officer |
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Name : |
Mr. T. D.
Mathwani |
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Designation : |
Sr.
Vice-President (Projects and Technology) |
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Name : |
Mr. R. Sriraman |
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Designation : |
Sr.
Vice-President (Legal) and Company Secretary |
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Name : |
Mr. R. P. Karnik |
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Designation : |
Vice-President
(Projects) |
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Name : |
Mr. D. A. Desai |
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Designation : |
Vice-President
(Co-ordination) |
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Name : |
Mr. S. P. Arya |
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Designation : |
Vice-President
(Manufacturing) |
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Name : |
Mr. S. M. Desai |
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Designation : |
Vice-President
(Co-ordination) |
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Name : |
Mr. A. C.
Augustine |
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Designation : |
Vice-President
(Human Resource) |
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Name : |
Mr. V. S. Laghate |
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Designation : |
Vice-President
(Strategic Planning) |
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Name : |
Mr. V. Y. Kelkar |
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Designation : |
Vice President
(Corporate Communication) |
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Name : |
K. V. Nayak |
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Designation : |
Vice-President
(Agri- Business) |
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Name : |
Mr. Anil Rakheja |
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Designation : |
Vice- President
(Project ) |
BUSINESS DETAILS
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Line of Business : |
Manufacturing
of Ammonia, Methanol, Nitric Acids (in various concentrations), Low Density
Prilled Ammonium Nitrate (Explosive Grade) and Nitrophosphate Fertilisers, Chemical
Fertilisers containing Nitrates and Phosphates (Nitrophosphates/Ammonium Nitrate Phosphate), Organic
Chemicals, Acrylic Alcohols, Methyl Alcohol and Ammonium Nitrate. |
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Products : |
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Brand Names : |
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Exports : |
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Products : |
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Countries : |
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Imports : |
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Products : |
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Countries : |
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Terms : |
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Purchasing : |
L/C,
D/A and D/P |
PRODUCTION STATUS
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Particulars |
Unit |
Installed Capacity |
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Ammonia |
(MT) |
90000 |
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CNA |
(MT) |
79200 |
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DNA |
(MT) |
297000 |
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Methanol |
(MT) |
100000 |
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AN |
(MT) |
90000 |
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CO2 |
(MT) |
16500 |
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ANP |
(MT) |
229500 |
GENERAL
INFORMATION
|
Customers : |
·
Methanol ·
Nitric
Acid ·
Strong
Nitric Acid (SNA) ·
Dry
Ice ·
Dilute
Nitric Acid (DNA) ·
Concentrated
Nitric Acid (CAN) ·
Low
Density Ammonium Nitrate (LDAN) |
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No. of Employees : |
1050 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
B. K.
Khare and Company Chartered
Accountants |
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Address : |
Mumbai,
Maharashtra, India |
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Associates: |
Deepak
Complex, National Games Road, Yerawada, Pune – 411 006, Maharashtra Tel.
91-20-26689265 Fax. 91-20-26685448
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Subsidiaries |
Smartchem
Technologies Limited (from 09.12.2003) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
125000000 |
Equity Shares |
Rs.10/- each |
Rs.1250.000 millions |
|
1000000 |
Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.100.000 millions |
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TOTAL |
|
Rs.1350.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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|
88204943 |
Equity Shares |
Rs.10/- each |
Rs.882.049 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS FUNDS |
|
|
|
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|
1] Share Capital |
882.000 |
882.049 |
882.049 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
5472.600 |
4854.718 |
4360.716 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
6354.600 |
5736.767 |
5242.765 |
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LOAN FUNDS |
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|
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1] Secured Loans |
2553.100 |
1760.801 |
908.521 |
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2] Unsecured Loans |
700.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
3253.100 |
1760.801 |
908.521 |
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DEFERRED TAX LIABILITIES |
0.000 |
483.114 |
510.686 |
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TOTAL |
9607.700 |
7980.682 |
6661.972 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4393.400 |
2694.695 |
2964.734 |
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Capital work-in-progress |
1877.500 |
2256.755 |
810.942 |
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INVESTMENT |
2096.100 |
2266.543 |
2484.936 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Interest Accrued on Deposits |
0.000
|
9.445
|
9.346
|
|
|
Inventories |
1156.900
|
609.118
|
383.605
|
|
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Sundry Debtors |
1219.800
|
906.034
|
548.191
|
|
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Cash & Bank Balances |
350.700
|
226.665
|
231.322
|
|
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Loans & Advances |
936.400
|
490.457
|
417.534
|
|
|
Other Current Assets |
0.000
|
102.000
|
0.000
|
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Total Current Assets |
3663.800 |
2343.719 |
1589.998
|
|
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
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Current Liabilities |
2085.600 |
1153.585 |
724.956 |
|
|
Provisions |
356.200 |
452.717 |
463.682 |
|
Total Current Liabilities |
2441.800 |
1606.302 |
1188.638
|
|
|
Net Current Assets |
1222.000 |
737.417 |
401.360
|
|
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MISCELLANEOUS EXPENSES |
18.700 |
25.272 |
0.000 |
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TOTAL |
9607.700 |
7980.682 |
6661.972 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
9057.900
|
6126.400
|
5293.900
|
|
|
Other Income |
368.900
|
457.600
|
274.800
|
|
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Total Income |
9426.800 |
6584.000 |
5568.700 |
|
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|
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|
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|
Profit/(Loss) Before Tax |
1282.300
|
1115.600
|
1123.400
|
|
|
Provision for Taxation |
353.000
|
317.900
|
325.900
|
|
|
Profit/(Loss) After Tax |
929.300
|
797.700
|
797.500
|
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Earnings in Foreign Currency : |
NA |
139.502 |
92.873 |
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Imports : |
NA |
1939.105 |
792.093 |
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Expenditures : |
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|
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Raw Materials |
5859.600
|
3427.100
|
2425.400
|
|
|
Excise Duty |
765.200
|
495.000
|
512.100
|
|
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Power & Fuel Cost |
169.500
|
126.500
|
162.500
|
|
|
Other Manufacturing Expenses |
343.300
|
241.800
|
241.900
|
|
|
Stock Adjustments |
[468.900]
|
[55.500]
|
8.300
|
|
|
Employee Cost |
421.900
|
375.600
|
364.600
|
|
|
Selling and Administration Expenses |
330.600
|
216.500
|
183.200
|
|
|
Miscellaneous Expenses |
217.600
|
269.300
|
149.700
|
|
|
Interest & Financial Charges |
114.900
|
56.500
|
86.500
|
|
|
Depreciation |
390.800
|
315.600
|
311.100
|
|
Total Expenditure |
8144.500 |
5468.400 |
4445.300 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1ST
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
2197.900
|
2169.000
|
2739.900 |
|
Other Income |
115.600
|
139.400
|
63.800 |
|
Total Income |
2313.500
|
2308.400
|
2803.700 |
|
Total Expenditure |
1812.300
|
1847.800
|
2290.200 |
|
Operating Profit |
501.200
|
460.600
|
513.500 |
|
Interest |
50.000
|
30.500
|
37.600 |
|
Gross Profit |
451.200
|
430.100
|
475.900 |
|
Depreciation |
106.100
|
108.400
|
113.500 |
|
Tax |
127.900
|
115.700
|
114.800 |
|
Reported PAT |
225.800
|
218.800
|
244.700 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt
Equity Ratio |
0.41 |
0.24 |
0.22 |
|
Long
Term Debt Equity Ratio |
0.36 |
0.24 |
0.22 |
|
Current
Ratio |
1.15 |
1.03 |
1.05 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.16 |
0.90 |
0.80 |
|
Inventory
|
10.24 |
12.34 |
13.77 |
|
Debtors |
8.52 |
8.43 |
7.48 |
|
Interest
Cover Ratio |
12.16 |
17.82 |
13.99 |
|
Operating
Profit Margin (%) |
19.74 |
21.59 |
28.73 |
|
Profit
Before Interest and Tax Margin (%) |
15.43 |
16.43 |
22.85 |
|
Cash
Profit Margin (%) |
14.57 |
16.29 |
20.94 |
|
Adjusted
Net Profit Margin (%) |
10.26 |
11.14 |
15.06 |
|
Return
on Capital Employed (%) |
16.38 |
14.78 |
19.84 |
|
Return
on Net Worth (%) |
15.37 |
12.43 |
16.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Promoted
in 1979 by Deepak Nitrite and C K Mehta as a private limited company, subject became
a public company in 1982. It manufactures anhydrous liquid ammonia. The 272-tpd
plant at Taloja went on stream in Dec.'83. The plants are located in the well
developed industrial area at Taloja near Bombay. Consistent supply of crucial
raw material - Natural Gas - is assured through Deepak's own gas pipeline
direct from Bombay High gas fields.
Smartchem Technologies Limited and Deepak Nitrochem Pty Limited, Australia are
the subsidiaries of the company.
The company diversified into the manufacture of ammonium nitro-phosphate (ANP)
fertiliser (cap.: 23 Millions TPA) and integrated into the manufacture of
concentrated nitric acid (33,000 tpa), ammonium nitrate (36,000 tpa) and dilute
nitric acid (200,000 tpa). It also set up a 100,000-tpa methanol project which
was part financed through a public issue of convertible debentures in Jan.'89.
DFL has a technical collaboration with Fish International Engineers, US and
Stamicarbon, the Netherlands. The Programme for retrofit Ammonia Plant was
completed by end March, 2000.
Keeping in mind the constraint of gas supply, the company had invested in a
port-based storage facility for imported ammonia. The Company is also exploring
the possibility of increasing the number of sources of Ammonia including the option
of setting up a gas-based Ammonia plant abroad and also studying oppportunities
for broad-basing industrial chemical products through forward integration. The
company has implemented the debottlenecking of Ammonia Plant but the additional
gas supply was never received.
The expansion of NP fertilizer plant to 3, 00,000 tons p.a and LDAN plant to 1,
00,000 tons p.a was taken up in 2001-02. The engineering work for AN Melt
capacity was completed and the above the plants were commissioned during 2002-03
there by enhancing the capacity by 90,000 tpa. Technology for the new plant has
been supplied by Grande Praoisse, France.
The company has increased the installed capacity of CNA by 23100 MT during
2004-05 and with this expansion the total installed capacity of CNA has
increased to 79200 MT.
MANAGEMENT DISCUSSION
AND ANALYSIS
THE
MACRO-SCENARIO
The Indian
economic growth story continues unabated. The country is in the midst of a very
clear structural shift into a higher GDP growth rate bracket. Though managing
this transition is a challenge for economic planners, the growth represents a
continuing opportunity for Indian industry. Domestic demand is buoyant, as are
exports. The investment rate is growing steadily. The economy is becoming more
resilient. India's global takeovers are a pointer that the country is now a
contender to reckon with in the international arena. However, infrastructure /
power constraints remain and inflation though manageable, is a cause for worry
to Indian economic planners.
The Indian financial sector is now becoming globally competitive in terms of
product alternatives, across both debt and equity, available to domestic
companies. The strengthening of the rupee against the US dollar will have a
positive impact on project cost structures for investment domestically.
Overall, there could be no better opportunity for India to unleash its potential.
MACRO-POINTERS
PERTINENT TO THE COMPANY
The Oil and Gas sector is poised to change the very face of the Power, Chemicals
and Fertiliser industries. The large gas finds in the KG Basin are now not only
firmly established but are expected to be available by end-2008. Parallely, the
Dahej-Uran Pipeline is slated to be commissioned in July 2007 opening up the
connectivity for LNG and Natural Gas from the PMT fields. Thus the Company's
perennial issue of gas shortage now sees light at the end of the tunnel.
A boom in the
Infrastructure sector and growth trends in the mining sector have propelled a
strong positive thrust for commercial explosives. India's huge power needs will
also require a massive focus on coal mining. These macro-pointers going forward
spell a positive story for their Ammonium Nitrate business.
The retail boom
is now spreading fast to every corner of the country.
Alongside, an
organised supply chain from farm-to-fork is also emerging.
This ensures
that quality fruits and vegetables reach very quickly from the farm gate to the
retail shelves. This macro-shift opens new doors for customised fertilisers and
agri-services for the Company.
Finally, the
consumer boom propelled by higher disposable incomes continues as does the boom
in housing. This means a greater demand for better designed homes and spaces, differentiated
products and a need for convenience. Thus, alongside the mall mania in
conventional retail, a new trend of the speciality mail, offering focused
shopping experiences in the form of marriage malls, automobile malls, etc. is
emerging. The Company's Speciality Mall and Design Centre, Ishanya, is clearly
a move in the right direction.
THE
AGRI-BUSINESS
No significant
change has emerged in Government policy for this sector.
Though the
current policies are not ideal to maximise economic gains and efficiencies,
they are a reality that has to be factored into any plan for this sector.
The future will
demand not just customised nutrients and micro-nutrients for Indian soils that
enhance agricultural productivity and enable quality-driven, precision farming,
but also further downstream resources like the augmentation of global market
access to farmers. The Company is now beginning to play this role through a
combination of in-house marketing and outsourcing, with the Mahadhan Saarrthie
initiative as the key vehicle capitalising on the opportunity in this sector.
Mahadhan Saarrthie centres are working as high quality knowledge bases for
farmers, providing both product and advisory services at a fee. The advisory
services, provided regularly, have enabled the farmer to grow global-class
products. Further linkages created by the Company with global importers and
exporters have opened up new markets for farmers driving better farm economics
and creating a new business model that the Company intends exploiting to the
fullest. The Company has taken the member farmers through the process of Eurep
GAP certification for the export of grapes. The certification is a must for
exports into Europe and is a key tool towards achieving their Saarrthie
strategy. The grape exports at the Pimpalgaon Saarrthie centre in Maharashtra
stand out particularly in this regard.
THE CHEMICALS BUSINESS
·
Industrial
Chemicals:
India's
economic boom has positively impacted the Chemicals sector with demand rising.
On the other hand, with peak customs duties at 10% and duties for chemicals at
7.5%, India is fast becoming a significant market for global giants. The
Company remains among the leaders in this market, across all parameters, for
its products. Its current basket of chemicals viz. Methanol, Iso Propyl Alcohol
(IPA), various grades of Nitric Acids, Hydrogen and Carbon Dioxide provide the
Company with considerable product flexibility to manage commodity market cycles
efficiently. The Company enjoys strong customer relationships and loyalty.
The Company's moves to strategically combine products, value-add
techno-commercial services and create brands should enable considerable market
advantages in the coming years. The Company's initiative to supply select
chemical products like Methanol and IPA in drums has been implemented and
customised packaging is now available. This has been very well received by the
market, as have been the customised grades of Nitric Acid that the Company is
supplying.
The global
Methanol market over the last calendar year has seen considerable swings. New
capacities have come up globally and more are expected. Prices have plateaued
at levels that are lower than the average price levels obtained in 2006.
India's domestic demand for Methanol has grown and is likely to grow at a
healthy pace. The Company will consolidate and further augment the marketing
and distribution strengths in this business.
The Iso Propyl
Alcohol market is expected to see prices stable in the short-term. The Company
has now clearly emerged as the producer and marketer of choice in India.
Further details are available elsewhere in this Report.
·
Ammonium Nitrate:
The Ammonium
Nitrate (AN) market in India is closely linked to the growth in infrastructure
and mining. Given the growth rates expected in the economy, these two sectors
stand to benefit considerably. Current domestic market growth rates hover
around the 6 to 7 percent mark and will further improve as the demand for coal
to feed the power sector goes up. The Company is the acknowledged market leader
in this product for its ability to offer not just the widest range of products,
from melt to low density porous prills, but its services and knowledge skills
that drive precision blasting yielding better economics to AN users. Initiatives
to create and augment its brands through a strategic, customer-centric mix of
products and services are well underway and should benefit the Company strongly
in the future.
·
Ammonia:
As a strategic
back-up to gas, the Company has also taken up a project to build a shore-based
Ammonia storage tank. This will open up one more avenue for supplies of a key
raw material for the Company. Huge new Ammonia capacities in the Middle East
are fast coming up and this is likely to soften prices, which could be an advantage
for the Company.
·
Retailing / Value-Added
Real Estate:
The Company's
initiative to identify the speciality retail segment of the market as a growth
driver three years ago is showing results. The overall interiors and exteriors
market that the Company has focused upon through its Design Centre and
Speciality Mall, Ishanya, is growing at around 8 percent annually, a growth
rate that is faster than most other segments of retail trading.
Ishanya is
already a well-recognised brand among key segments of the interiors and
exteriors industry. Options are being explored to leverage these brand
strengths in a direction which will provide not just synergies but add further
luster to the Ishanya brand, while capitalising on the huge opportunity
emerging in the interior and exterior segments and in the design industry. More
details on the progress of Ishanya are available elsewhere in this
report.
·
Management Practice and
Systems:
The Company has
received the ISO 9001:2000 certification for the manufacture and supply of
Methanol and Iso Propyl Alcohol in March 2007.
Considerable
progress has been made in implementing global class Human Resource practices
and enhancing productivity. Training programme in SAP with a focus on enhancing
information flows and productivity, besides training programmes for a new
employee engagement thrust titled KSH were a key part of the HR initiatives for
the year FY07. KSH is a movement that combines the Kaizen initiatives of TQM
with Small Group Activity and Housekeeping to create an energising force within
the Company.
The aim is to
make the Company a highly competitive, learning organisation, fully capable of
meeting emerging global challenges effectively.
THE YEAR UNDER REVIEW
·
Financial
Analysis:
The financial
year 2006-07 (FY07) has been a record breaking year for the Company with
unprecedented topline and bottomline growth levels, despite constraints of
feedstock availability. The growth has been achieved by deft capitalisation on
market opportunity through a combination of in-house manufacturing and
strategic outsourcing.
Total Revenues for the financial year 2006-07 (FY07) jumped to Rs.8694.300
Millions from Rs.5954.900 Millions in the financial year 2005-06 (FY06). Profit
Before Tax rose to Rs.1283.900 Millions in FY07 from Rs.1117 Millions in FY06.
Net Profit for
the year FY07 stood at Rs.929.300 Millions against Rs.797.700 Millions in FY06.
Earnings per share, as a consequence, have grown from Rs.9.04 in FY06 to
Rs.10.54 in FY07.
- Operational Analysis:
The supply of Natural Gas, the key feed stock to the Taloja
plant in Maharashtra, continued to be short of requirements. The shortfall in
feedstock was met through a strategy of outsourcing Ammonia for maintaining
manufacturing levels. Prices of both Naphtha, which is used for heating and
steam generation and precious metals used as catalysts rose.
- Overall Production and Sales:
The total fertiliser sales volumes for FY07 increased to 3, 68,723 MT from 2,
65,222 MT in FY06, while industrial chemicals grew to 2, 64,006 MT in FY07 from
2, 50,334 MT in FY06.
With its strong brand strengths and its new thrust in agri-services through the
Mahadhan Saarrthie model, the Company saw record growth in sales of
fertilisers. A strong momentum across the industrial chemicals and AN segments
was maintained. IPA also provided a good boost to the industrial chemicals
business. The Company manufactured IPA has a high level of acceptance in the
domestic and global markets and would be a strong topline and bottomline driver
in the future.
SEGMENT-WISE AND PRODUCT-WISE BUSINESS
- AGRI-BUSINESS:
Driven by the strategy of providing comprehensive soil nutrients, micro-nutrients, advisory services to the farmers, the Company has seen record sales growth in this business. Though this resulted in a higher volume of outsourced fertilisers, considerable brand strengths and customer loyalty across the farmer base have been created. For the year under review sales of outsourced fertilisers increased 42% from 2,11,944 MT in FY06 to 2,99,941 MT in FY07. Two Mahadhan Saarrthie centres were created during FY07, bringing 2,500 farmers and 7,500 acres of land now under the Saarrthie umbrella. The production of Nitro Phosphate fertiliser (23:23:0) remained affected owing to a shortage of key feedstock.
CHEMICALS
SEGMENT
- Methanol:
Methanol production improved marginally in FY07 as compared to FY06. The volume of traded Methanol stood at 47,016 MT in FY07 against 59,677 MT in FY06.
The Company was
able to reap considerable advantages from the uptrend in global Methanol
prices. While the production of Methanol manufactured in-house was higher than
FY06, overall Methanol sales were lower due to several factors that were at
play globally. With Methanol prices at an all time high in the last
quarter of calendar year 2006, availability worldwide was restricted, and
product outsourcing opportunities were not optimum.
This had its
impact on the import of the Methanol into India. In the last quarter of FY07,
however, prices corrected to normal levels.
·
Iso Propyl
Alcohol:
The Company
commissioned its IPA plant in August 2006. Since then 11,146 MT of the product
have been sold in the domestic market and 1,405 MT have been exported. Sales
figures would have been higher but for a fire at a key supplier's plant in
October 2006, which caused more than 30-days disruption for want of feedstock
Propylene. The product's acceptance in terms of both quality and the service
levels obtainable from the Company has been very heartening.
·
Acids:
Sales volumes in
acids grew 8% for FY07 over FY06 to 1,14,855 MT. The overall sales in value
terms went up 14% in FY07 against FY06.
·
Ammonium Nitrate:
Driven by
growth in mining, construction and infrastructure demand for Ammonium Nitrate continued
to be strong. Overall sales volume grew 6% over the previous financial year.
The Company sold higher volumes of value-added prilled product, riding on its
strong OPTIMEX brand, backed by high levels of techno-commercial services with
higher margins.
·
Liquid Carbon
Dioxide:
The total sales
volume of C02 was 5.78% higher over FY06. The Company has now made a strong
foray and acceptance into the food and beverages market with this product which
is certified by the world's best food testing laboratories M/s. TNO of The
Netherlands.
·
Hydrogen:
The volume
sales for Hydrogen, which is a byproduct, improved by 37% for FY07 over
FY06.
·
Exports:
With the thrust
provided, exports of AN for the year under review was Rs. 124.100 Millions, a
growth of 15.98% over the previous financial year. Exports of IPA stood at Rs.
56.800 Millions. The Company has now established a global market for this
product. Nitric Acid exports value grew by 59%.
CURRENT AND FUTURE PROJECTS
·
Retailing / Value Added
Real Estate:
Ishanya's
campus-like design, with 5,50,000 square feet of leasable space, spread over
10-acres will, besides having retail spaces, offer exhibition halls, an
amphitheater, a design studio, a training and development centre, art
galleries, business center, ample parking, etc. Restaurant and food courts will
also be available.
Ishanya, is
emerging as India's largest Design Centre and Speciality Mail and has already
leased out over 75% of space at the end of FY07. A shift in the opening of the
mall has been necessitated due to a severe shortage of available labour for
construction activity in Western India.
Ishanya's features permit an augmentation of revenue streams beyond lease
rentals and provide a strong cushioning and enhanced brand value for the
future. As of date, tenant fit-outs are in full swing. Nearly 2,10,000 square
feet of space have already been handed over and Ishanya is expected to commence
operations in a phased manner from Q2 of FY-08, well in time to catch the
festival season.
Ammonium Nitrate:
The initiative
to set-up an integrated green-field complex for Nitric Acid and AN at Paradeep
in Orissa, in Eastern India, is proceeding well despite a few delays on land
procurement given the complex nuances of this issue in India. Technology and
engineering tie-ups and ordering of long delivery equipment are underway.
Ammonia Storage Tank:
The Company's
15,000 MT storage tank project for Ammonia at JNPT is progressing well. The
turnkey contract has already been awarded and major long lead items have been
procured. The tank is expected to be commissioned around mid-2008. The
environmental clearances required are in process of being obtained.
Fixed Assets
- Land freehold
- Land leasehold
- Buildings
- Plant and machinery
- Electrical installation and fittings
- Furniture and fixtures
- Office equipments
- Vehicles
Its’ products range includes :-
- Ammonia
- Methanol
- Dulute Nitric Acid (DBA)
- Concentrated Nitric Acid (CAN)
- Liquid Carbon-di-oxide (CO2)
- LDAN
- Nitro Phosphate (NP)
- MOP
- DAP
- Ammonium Sulphate
- Mixtures
- Urea Seeds
- Sulphur
- Micronutrients
- SSF
- Traded Bulk Fertilisers
- Traded
Speciality Agro Products
AS PER
WEBSITE
Introduction
The Subject Group of industries was born in 1970 when Mr. C. K. Mehta set up
Deepak Nitrite Ltd, combining his skills in trading and manufacturing. The
company grew by leaps and bounds, surpassing expectations of all investors and
also won many prestigious awards like the Sir P.C.Ray award, for being the best
Chemical Industrial unit in India.
In 1983, Subject started commercial production of ammonia
(in technical collaboration with Fish International Engineers (USA)) using
natural gas as feedstock. This marked the fulfillment of a need for lateral
integration into the world of basic building block chemicals, premium
fertilisers and petrochemicals. At the time, this was India's only merchant
ammonia manufacturer. The International Finance Corporation initially supported
this venture of Subject group in the form of equity participation in subject.
The company undertook major expansion and diversification in
1989 to achieve forward integration of ammonia and diversification in Methanol.
In July 1992, SubjectL commenced commercial production of
Low Density Ammonium Nitrate (LDAN), Nitro Phosphate (NP), Dilute Nitric Acid
(DNA), and Concentrated Nitric Acid (CNA).
This has resulted in a multi-product portfolio for subject
consisting of chemicals, petrochemicals, fertilisers and other agri-inputs. To
ensure an uninterrupted supply of natural gas to its plant, subject laid its
own 43 km gas pipeline from the coastal fall point of Bombay High to its plants
in Tajola, thus becoming one of the first companies in India to have its own
gas pipeline.
Subject has a chemical storage
terminal at Jawaharlal Nehru Port Trust (JNPT) to provide support to its
logistics management system and ensure a window to the world trade in
chemicals. It is in the process of adding new storage facilities for Ammonia, Methanol
and other products. The company also leases port storage capacities at Bombay
Port Trust and Vishakhapatnam.
Subject business can be broadly categorised into: -
- Chemicals
- Agribusiness
Chemicals:
This division of Subject manufactures Methanol, various
grades of Nitric Acid and Ammonia. Subject is one of the largest producers of
Methanol in India, which in turn is used to manufacture drugs, pharmaceuticals,
DMT, pesticides, methylamines, formaldehyde, etc. Subject is also one of the
largest manufactures various concentrations of Nitric Acid (60%, 68%, 72% and
98%). Ammonium Nitrate: The explosives division manufactures Low Density
Ammonium Nitrate, which is used for making Ammonium Nitrate-fuel oil (ANFO),
blasting agents and also emulsified ANFO (HANFO). Subject is the largest
manufacturer of ammonium nitrate in India (capacity expanded to 100.000 tpa in
September 2002), and the only one making prilled Ammonium Nitrate (AN).
Agribusiness:
This division of DFPCL manufactures 23:23:0 prilled Nitrophosphate
fertiliser under the brand name Mahadhan. DFPCL markets Mahadhan through a
network of over 1000 dealers.
Ishanya:
Ishanya is India's first International Design Centre and
Speciality Mall - a centre for excellence in space design and the one-stop shop
for interior and exterior products.
For architects and interior designers, Ishanya is a platform
to showcase their art, craft and vision to a targeted and discerning audience. For
manufacturers and retailers of interior and exterior products, it's the perfect
marketplace to make the most of India's real estate and construction boom. For
homeowners, corporate shoppers and visitors, Ishanya will provide the ultimate
experience in shopping for the home.
Social Responsibilities
The Subject Group has been contributing towards social causes for nearly two
decades. The Deepak charitable Trust (DCT) and the Deepak Medical Foundation
(DMF) with the support of Subject and Deepak Nitrite Limited are carrying on
development activities for society.
DCT has been actively working in the area of mother and
childcare. Through an integrated network of women health workers the foundation
has been imparting training and communication on health care. Extending the
activities on both sides, the Foundation has catalysed and supported the
creation of Aanganwadis, and taken education to youth on family planning. The
Foundation is now working to curtail the spread of HIV / AIDS.
Subject takes an active interest in environmental
protection. In addition to regulatory requirements of the State Pollution
Boards and Federation of Indian Industries, care is taken to reduce pollution
by incorporation of appropriate effluent handling disposal systems.
In their plants they continuously monitor solid, semisolid
and gaseous affluent discharges to ensure that they are within allowable
limits. They also help other small industries as well as customers in solving
their environment- related problems.
Future Prospects
Subject will continue to make deeper inroads into value-added chemicals, agro
inputs and related services.
·
Subject plans to leverage its well-knit marketing and
distribution network in chemicals and fertiliser industry to provide
value-added services to their customers for sourcing raw materials and
assisting them in exporting their products. The chemical storage and drumming
facilities at Jawaharlal Nehru Port (JNPT) near Bombay will provide further
value-added services.
·
They are awaiting environmental clearance for a new port
storage facility at JNPT.
·
Deeper in-roads into agro-inputs and services markets are on
the drawing board, including the MAHADHAN Agriculture Research Centre (MARC),
which will serve to partner with farmers, providing education, training and
ensuring that they achieve the best performance.
- Dreams of visionary minds and planned strategy by professional
managers will give shape to an emerging, exciting future at subject.
Industrial Chemicals
Subject is one of the leading producers of industrial
chemicals like Ammonia, Methanol, various grades of Nitric Acid and liquid
Carbon Dioxide in India.
Products
The industrial chemical products manufactured by the Company at their
state-of-the-art plants meet international quality standards and have been
well-received in the domestic and international markets:
·
Methanol
·
Nitric Acid
·
Liquid Carbon Dioxide
·
Isopropyl Alcohol
Customers
The industrial chemicals division caters to a cross-section of industrial
customers, both small and large. These include all the major companies in
pharmaceuticals, DMT, pesticides, resins, textiles, fertilisers, rubber,
petrochemicals, fibres and polyester sectors.
There are several reasons why quality conscious and professional
organisations prefer to deal with Subject:
Service
Unlike traders, Subject is always there to serve its customers. They deliver
seven days a week, 365 days a year (except for four hours during the
presentation of the Union Budget every year).
They have two shift (sixteen hours) loading, so that they
can offer the quickest turnaround time to their customers.
Logistics
They have storage facilities at the factory (Taloja), Mumbai port and
Vishakapatnam port. This allows them to deliver across the country, enabling
you to benefit from the optimum logistic solution.
Consistency
Regardless of domestic supply constraints, they can deliver to, consistently,
every day, all year round. This is thanks to their unique capability to manufacture
locally as well as to import and store at major ports on the East and West
coasts of India. This provides customers with a seamless supply, at optimum
prices, regardless of disturbances in either local or imported supply.
Private Sector Efficiency
Being the only private sector manufacturer they value the importance of
service, timeliness and efficiency. They know exactly how valuable their
customer's time is, and are approachable, flexible and responsive to their
needs.
PRESS
RELEASE
Deepak Fertilisers And Petrochemicals plans
major investment in chemicals riding on Mining and Construction sector growth
• Expanding its thrust into the Chemicals
Sector
• Major expansion in Ammonium Nitrate with an
investment of about Rs.4000 millions (about US $ 90 million)
Mumbai,
October 21, 2005: Deepak Fertilisers and Petrochemicals
Corporation Limited (DFPCL) today announced a major expansion plan in the
Chemicals Sector to set up a 3,00,000 Metric Tonnes Per Annum green-field
complex for Nitric Acid and Ammonium Nitrate in Eastern India. The project will
be set up with an investment of about Rs.4000 millions (approx. US $ 90
million) and will primarily be focused on the needs of the mining and
construction sectors in the domestic and global markets. The new plant is
expected to be set up in about 24 months time.
The new project in Eastern India
will augment DFPCL’s geographical reach cost-effectively across the country and
strengthen its position as the market leader. The DFPCL brand Optimex is India’s
leading brand in the AN market, where the Company has already sold more than a
million tonnes of the product over the last decade or so.
Ammonium Nitrate is used
extensively in the mining and construction sectors, all of which are in a
strong growth phase that is expected to continue as the Indian economy
strengthens. Domestic demand is rising at about 5 % annually while demand in
the international markets is also growing fast.
The Company already has a
prilled Ammonium Nitrate facility with a capacity of 90,000 tonnes at Taloja,
near Mumbai, in Western India. The Company’s 100 % subsidiary, Smartchem
Technologies Limited, also has two plants with a total capacity of 50,000
tonnes in Andhra Pradesh in Eastern India and in Gujarat in the west of the country.
“DFPCL has over two decades of
proven strengths in the field and is known for its strong technology and
project management skills. The new capacity expansion will propel the Company
into a new high growth phase. Their strong techno-commercial skills, coupled
with their new capacities, will continue to be at the forefront of
customer-led, technology-driven strategy. They are focussed on providing
optimal world class blasting solutions to their customers,” Mr. S. C. Mehta,
the Company’s Managing Director said.
The Company has over the last two decades acquired and
absorbed the world’s leading technologies involved for the products –
Stamicarbon, Grande Paroisse and Norsk Hydro (which is being used at Smartchem
Technologies). The Company’s current AN operations benchmark very favourably
with world standards across all parameters for the manufacturing and handling
of the product.
The Company registered strong growth in sales and profits
for the six-month period ended September 30, 2005. The Company saw a 16 %
growth in sales from Rs.2160 millions to Rs.2490 millions. Profit Before Tax
jumped by 21 % from Rs.445.0 millions to Rs.54 millions, while Profit After Tax
increased from Rs.290 millions to Rs.370 millions, a jump of 27 %. The
Company’s Chemicals business saw a 15 % growth during the first half of
2005-06, while the Agri-services business, including Fertilisers, registered a
growth of 8%.
Deepak Fertilisers and Petrochemicals Corporation Limited
Topline grown 18% in 2005-06
- Company announce dividend of 30%
- Net Sales for 2005-06 at Rs.5628.600 millions, riding on strong
growth in price realisations across key products.
- Net Profit at Rs.797.700 million
- EPS stays steady at Rs.9.04
- IPA project ready for commissioning in the first quarter of 2006-07
May 18, 2006: Deepak Fertilisers and Petrochemicals
Corporation Limited showed strong 18%
growth in its Net Sales to Rs.5628.600 millions for the year ended 2005-06 from
Rs.4781.700 millions in 2004-05. The company announced a dividend of 30% for
the year.
The sales growth came on back of higher sales volumes in
fertilisers and industrial chemicals. The total fertiliser sales volumes for FY
06 increased to 265200 from 186700 MT in FY05, while Industrial Chemicals grew
to 250400 MT in FY06 from 239700 MT in FY05.
DFPCL’s strategy of foucsing on total nutrients management
in order to provide the farmer with soil and plant specific needs calls for
outsourcing soluble fertilisers, micronutrients and secondary nutrients that
its does not currently manufacture. This focus has resulted in a higher volume
of outsourced fertilisers, which for the year under review was up by 84% in
FY06 over FY05.
In the industrial Chemicals segment, sales volumes of
outsourced products rose by 57% in FY06 against FY05 on account of a lower
production necessitated by the flash floods in Western Maharashtra toward the end of July 2005. The outsourcing
was necessary in order to maintain market share and customer loyalty.
Sales volumes for Ammonium Nitrate stood at 102100 MT during
the year under review comparable to the previous financial year (FY05). The
lower production due to the flash floods in end July 2005 was compensated by
outsourcing 4000 MT of Ammonium Nitrate.
The company strong brand and marketing strengths are
enabling it gain higher price realizations across its key products, especially
Ammonium Nitrate and Nitric Acid.
The GAIL pipeline from Dahej to Uran is expected to be
complete around February 2007. This will provide the company’s Taloja plant
with sufficient quantities of LNG and ensure higher capacity utilisation and
contribution.
Profit before tax stood at Rs.1117 million in FY06 against
Rs.1124.600 million in FY05. Net Profit for the year FY06 stood at Rs.797.700
millions against Rs.797.500 millions in FY05. Earnings per share was steady at
Rs.90.400 in FY06 the same level as FY05.
Sales for the fourth quarter of FY06 stood at Rs.1701.600
millions up from Rs.1447.400 millions for the corresponding quarter in the
previous financial year. Net profit for the periods QIV 2005-06 stood at Rs.
268.300 millions against Rs.276.900 millions for the corresponding period in
the previous financial year (2004-05).
Profits did not move in line with sales largely due to the
rise in outsourced products, which were necessitated by lower production and
the need to maintain marketshare and customer loyalty.
The company is confident of its demonstrated ability to grow
marketshare, manage its production costs efficiently and gradually realise
price hikes, all of which should stand it in good stead in the future.
DFPCL has made a strong foray into agri-services, offering
integrated or total nutrients management to the farmer. The company has set up
two centres in Maharashtra that offer more than just fertilisers. The centres
have been branded “Mahadhan Saarrthie”. Each
“Mahadhan Saarrthie” centre aims to provide total agri-services and
solutions through soil, water plant testing facilities and crop nutritional
managements, utilising DFPCL’s range of plant nutrient products and ultimately,
providing the farmer marketing linkage for his farm produce with product buy
back and retailing. The crops selected for this purpose are potato, tomato and
grapes. two pilot projects have been undertaken so far and over 1000 farmers in
Maharashtra and 3000 acres of land brought under the “Mahadhan Saarrthie”
umbrella. This represents a major strategic thrust for DFPCL.
The company Mahadhan and Bhoodhan brands are amongst the leaders
in terms of brand recognition within their geographical and customer markets.
With this base, DFPCL is now leveraging its strengths in marketing, and brand
extensions with enhanced potash, sulphur, and phosphorous have been introduced
in the last few years with good success.
The company’s Iso-Propyl Alcohol project is slated to go
online in the first quarter of 2006-07 and current IPA prices show a firm
trend. Ishanya, India’s first Design Centre and Mall, had leased out over 60
percent of its 550000 sq. feet leasable area as of date.
DFPCL’s 300000 MT Ammonium Nitrate project at Paradip in
Orissa is going ahead as planned. The Nitric Acid plant for the project has
arrived at the plant site and is ready for erection. The detailed engineering
design contract and key technology supply contracts have been signed.
For further details contact :
Vivek Y. Kelkar
Vice – President – Communication
Tel : 91-20-26684916 / 91-9820210514
Sonia Kulkarni / Rohan Sukthanka
Adfactors PR
Tel : 91-9820401304
Global
specialty fertiliser and Ammonium Nitrate major Yara to sign JV with Deepak
Fertilisers And Petrochemicals Corp. Ltd.
Pune
February 6, 2008:
Yara International ASA and Deepak Fertilisers and
Petrochemicals Corporation Ltd (DFPCL) have announced that they had signed a
Heads of Agreement with the intention of establishing a joint venture company
(JV) to produce and market ammonium nitrate and speciality fertilisers in
India.
Yara International ASA is a US $ 14 billion Norway-based
global leader in ammonia, speciality and bulk fertilizers and Ammonium Nitrate
(AN), industrial gases and other diversified chemical and pollution control
products. DFPCL is an integrated chemicals and fertilisers major in India’s
private sector, with an over 25-year-track record and is listed on The Stock
Exchange, Mumbai (BSE) and the National Stock Exchange of India (NSE). The
Company has a market capitalization of approximately USD 250 million.
DFPCL will own 51 % of the JV while Yara will own the
balance 49 %. The heads of agreement will be converted into a final agreement
after a due diligence and the necessary company and regulatory approvals.
The JV’s objective is to bring value addition and deeper knowledge
leading to better market economics for Indian customers. The JV will review
opportunities for production, marketing and import of speciality fertilisers in
focused states viz. Maharashtra and Gujarat, where DFPCL has considerable
strengths. It will develop the ammonium nitrate market and climb the AN value
chain through its international expertise. The JV will also invest in the
300,000 MT per annum AN plant under construction at Paradip in Orissa on the
east coast of India.
Yara will bring its international expertise in nutrient
management and application of speciality fertilisers for improving productivity
and quality of important cash crops and thus improving farm economics. The JV
with Yara is expected to provide cost effective solutions to the farming
community and the mining and infrastructure sector in India.
“Our new partnership with DFPCL is a strong fit between
their strong position in AN in India, which has the world’s third biggest coal
reserves, and Yara’s proven strengths in 2/2 safety, production, logistics and
expertise in the use of technical ammonium nitrate for explosives (TAN),’ said
Thorlief Enger, President and CEO at Yara International ASA. “In addition, this
partnership will complement Yara’s leading global position within speciality
fertilisers with DFPCL’s strong local market position and knowledge in one of
India’s most attractive fruits and vegetable region,” said Mr. Enger.
Mr. Sailesh Mehta, Vice Chairman and Managing Director of
DFPCL said, “DFPCL’s over two-and-a-half decades of strengths in the fertiliser
and ammonium nitrate sectors will now be further propelled with global
expertise and knowledge. The JV will be valueaccretive to DFPCL and will
benefit its long term strategy in nutrient management
through speciality fertilisers and value-added mining
products and services. It is a winwin situation for both Yara and DFPCL.
Together we will create and offer safe, worldclass, high quality products for
the Indian farmers and the mining and infrastructure industries.”
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.66 |
|
UK Pound |
1 |
Rs.78.16 |
|
Euro |
1 |
Rs.58.09 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|