MIRA
INFORM REPORT
|
Report Date : |
28.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
CHAMBAL FERTILIZERS AND CHEMICALS LIMITED |
|
|
|
|
Registered Office : |
Gadepan, District Kota – 325
208, Rajasthan |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
07.05.1985 |
|
|
|
|
Com. Reg. No.: |
17-003293 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24124RJ1985PLC003293 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
JDHC01428A |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACC9762A |
|
|
|
|
Legal Form : |
Public Limited Liability company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturers of Ammonia and Urea. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 40000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company belonging to Birla Group, one of the large industrial houses in India. Subject company is the largest fertilizer complex in the private sector in India with a registered capacity of 1.7292 millions tonnes of urea per annum. Its products are Ammonia Urea and Phosphoric Acid. The company’s trade relations are reported as fair.
Payments are usually correct and as per commitments. Financial position is
comfortable. The company can be considered normal for business dealings. |
LOCATIONS
|
Registered Office : |
P O Gadepan, District Kota - 325 208, Rajasthan, India |
|
Tel. No.: |
91-744-6462162 / 6462167 / 2782915 / 2934 |
|
Fax No.: |
91-744-6465218 / 7455-274130 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Administrative Office : |
6th Floor, Devika Tower, 6, Nehru Place, New Delhi - 110 019 |
|
Tel. No.: |
91-11-26461162 – 63 |
|
Fax No.: |
91-11-26465218/26480639 |
|
E-Mail : |
|
|
|
|
|
Corporate Office: |
International Trade Tower ‘E’ Block, 14th Floor, Nehru place, New
Delhi – 110 019 |
|
Tel No.: |
91-11-26462162 – 63 / 41697900 |
|
Fax No.: |
91-11-26480639 |
|
|
|
|
Plant : |
Fertiliser
Plant
Gadepan, District Kota - 325 208 Rajasthan Tel. No.91-744-646 2162 / 646 2167 Fax No. 91-744-646 5218 Birla
Textile Mills
Baddi, District Solan - 173205, Himachal Pradesh, India
Software Group
113/114, Sir Thigaraya Road, T. Nagar, Chennai, Tamilnadu Food
Processing Unit (on lease)
Village and P. O. Rathdhana, Jatheri – Sonepat Road,
Sonepat – 131 001, Haryana |
|
|
|
|
Investor Service Centre: |
International Trade Tower ‘F’ Block, 2nd Floor, Nehru
place, New Delhi – 110 019 |
|
Tel No.: |
011 – 26480427 / 26413361 / 26480392 |
|
Fax No.: |
011-26465218 / 26480639 |
|
Email : |
jainrajesh@cfert.com
/ singhrajveer@cfert.com
/ rathorems@cfert.com
|
DIRECTORS
|
Name : |
Mr. H. C. Grover |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Sunil Sethy |
|
Designation : |
Joint Managing Director |
|
Date of Birth/Age : |
54 Years |
|
Qualification : |
B. Com, A. C. A. |
|
Experience : |
31 Years |
|
Date of Appointment : |
15th January, 1996 |
|
|
|
|
Name : |
Mr. Mohd. Y. A. Al-Roomi |
|
Designation : |
Alternate Director to P. J. Batavia |
|
|
|
|
Name : |
Mr. R. N. Bansal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dipankar Basu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shyam S. Bhartia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. D. Locke |
|
Designation : |
Alternate Director to C. S. Nopany |
|
|
|
|
Name : |
Mr. S. K. Poddar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. J. A. Tauro |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Macro Wadia |
|
Designation : |
Director |
|
|
|
|
Name: |
Dr. K K Birla |
|
Designation: |
Director |
|
|
|
|
Name: |
Mr. H. S. Bawa |
|
Designation: |
Director |
|
|
|
|
Name: |
Mr. Anil Kapoor |
|
Designation: |
Managing Director |
|
|
|
OTHER
PERSONNEL :-
|
|
|
Dr. D. L. Birla |
Executive President (BTM) |
|
Mr. Ajit Chakravarti |
Vice President (Corporate HR) |
|
Mr. Nirmal Jain |
President – ISG |
|
Mr. Anil Kapoor |
Vice President (Strategic Planning) |
|
Mr. V. Krishnan |
Vice President - Corporate Finance |
|
Mr. R. D. Mall |
Vice President (Operations) |
|
Mr. S. M. Nadgir |
Vice President (Agri Business) |
|
Mr. S. K. Patra |
Vice President (Marketing) |
|
Mr. M. S. Rathore |
General Manager - Legal and Company Secretary |
|
Mr. Deepak Kapur |
Vice President – Food Processing |
|
Mr. Ashok Kak |
Executive President – BTM |
|
Mr. Vinod Mehra |
Vice President |
|
Mr. M. George Peter |
Vice President |
|
Mr. Krishna Srinivasna |
Chief Executive Officer – IT Business |
|
Mr. Abhay Baijal |
Vice President - Finance |
|
Mr. Alok Dayal |
Vice President - Corporate HR |
|
Mr. Vinod Mehra |
Vice President - Operations |
|
Mr. Arun Sharma |
Executive President – India Steamship |
|
Mr. Ashish Srivastava |
Head – Food processing |
|
Dr. K K Birla |
Chairman |
|
Mr. S. K. Poddar |
Co – Chairman |
|
Mr. H S Bawa |
Vice Chairman |
KEY EXECUTIVES
|
Name : |
Mr. J S Gogia |
|
Designation : |
GM Marketing |
|
|
|
|
Name : |
Mr. H K Narang |
|
Designation : |
General Manager |
|
|
|
|
Name : |
M/s. A Nirula |
|
Designation : |
General Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Category |
No. of Shares |
Percentage of
Holding |
|
Promoters |
201388474 |
48.39 |
|
Financial Institutions, Bank, and Mutual Funds |
50694432 |
12.18 |
|
NRIs, Foreign Nationals, OCBs, and Flls |
36429828 |
8.75 |
|
India Public |
127695118 |
30.68 |
|
Total |
416207852 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Ammonia and Urea. |
||||||||||||||||
|
|
|
||||||||||||||||
|
Products : |
|
PRODUCTION STATUS
|
Particulars |
|
Unit |
Licensed
Capacity [
2006 - 07] |
Installed
Capacity [
2006 - 07] |
|
i) Fertiliser |
|
MTPD |
--- |
--- |
|
Ammonia |
|
MTPD |
2700 |
2700 |
|
Urea |
|
MTPD |
4600 |
4600 |
|
ii) Yarn Spindles |
|
Nos. |
-- |
80208* |
· 39888 spindles commissioned during the year.
Actual Production:
|
Production |
|
Quantity
( Tons) |
|
Ammonia |
|
1098544.000 |
|
Urea |
|
1925648.000 |
|
Synthetic Yarn |
|
|
|
Man Made Fibre Yarn |
|
11720.483 |
|
Fibre Yarn Waste |
|
518.981 |
|
Cotton Yarn |
|
-- |
|
Yarn |
|
2166.436 |
|
Fibre Waste |
|
827.663 |
|
Frozen vegetables and Fruits |
|
7645.764 |
GENERAL
INFORMATION
|
Suppliers : |
|
|||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
843 |
|||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Bank of Baroda · Punjab National Bank · State Bank of India · Allahabad Bank · State Bank of Indore · State Bank of Patiala · State Bank of Hyderabad · State Bank of Bikaner and Jaipur · Citibank · HDFC Bank · ICICI Bank · ING Vysya Bank · State Bank of Mysore · Axis Bank Debenture Trustee: Axis Bank Limited |
|||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||
|
Facilities : |
1. 7% Secured redeemable non-convertible debentures are secured by first pari-passu charge by way of mortgage in English form in respect of the immovable properties of the company situated in Gujarat and further secured by an unconditional and irrevocable guarantee issued by ICICI Bank Limited. in favour of debenture trustee which in turn is secured by first pari passu charge by way of mortgage of immovable properties and hypothecation of movable assets of fertiliser division of the company, subject to prior charges created/to be created in favour of bankers on movable assets for securing working capital facilities. During the year, the Company has redeemed Rs. 413.725 millions of 7% non convertible debentures, being 2 installments of Rs. 34,000 and Rs. 33,000 per debenture on May 19, 2006 and November 19, 2006 respectively. The balance amount of debentures will be redeemed at par on May 19, 2007. 2. 7.90% Secured redeemable non-convertible debentures are secured by first pari passu charge by way of mortgage by deposit of title deeds in respect of immovable properties and hypothecation of the movable assets of the company, both present and future (save and except book debts and assets of shipping division) subject to prior charges created / to be created in favour of bankers on movables for securing working capital borrowings. These debentures are redeemable on March 31, 2011. 3. Rupee term loan from financial institutions, banks and others (except for loans of Rs. 8.000 millions and Rs. 280.039 millions from banks and Rs. 10000.000 millions from financial institutions) and foreign currency loans of Rs. 2947.092 millions from banks are secured / to be secured by first pari-passu charge by way of mortgage, by deposit of title deeds in respect of immovable properties and hypothecation of the movable assets of the company, both present and future (save and except book debts and assets of shipping division), subject to prior charges created / to be created in favour of bankers, financial institutions and others on movables for securing working capital borrowings. 4. Rupee term loan of Rs. 8.000 millions from a bank is secured by hypothecation of Wartsila DG Set of 4 MW under exclusive charge. 5. Rupee term loan of Rs. 280.039 millions from a bank is secured by mortgage on the company's vessels, M.T. Ratna Urvi and hypothecation of movable assets and receivables (both present and future) of shipping division of the company. 6. Rupee term loan of Rs. 10000.000 millions from a financial Institutions is to be secured by first pari passu' charge on the movable fixed assets of the company (save and except assets of shipping division of the company). 7. Foreign currency loans of Rs. 2429.280 millions from banks is secured by mortgage on the company's vessels M.T.Ratna Puja and M.T. Ratna Shalini and assignment of earnings, insurance and requisition compensation in respect of these vessels. 8. Foreign currency term loan of Rs. 525.930 millions from foreign banks/ financial institutions is currently secured by assignment of ship building contract and refund guarantees in respect of three new vessels under construction. 9. Cash credit loans from banks are secured by hypothecation of all the company's movable assets including movable machinery, all stocks and book debts (including subsidy support), both present & future (except assets of shipping division). These loans are further secured / to be secured by second charge on all the immovable properties (except assets of shipping division) of the company. 10. Finance lease liability is secured by assets acquired under the facility. 11. Secured loans (other than cash credit loans from banks and short term rupee loans) includes Rs. 1149.991 millions (Previous Year Rs.1140.740 millions) repayable within one year.
|
|||||||||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
Banking
Relations : |
Satisfactory |
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
Auditors : |
|
|
||||||||||||||||||||||||||||||||||||
|
Name : |
S. R. Batliboi and Company Chartered Accountants Singhi and Company Chartered Accountants |
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
Membership: |
Confederation of Indian Industry |
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
Associates/Subsidiaries : |
Subsidiaries
and Step-down Subsidiaries of CFCL Overseas Limited
Subsidiaries
and Step-down Subsidiaries of CFCL Overseas Limited
Subsidiaries
and Step-down Subsidiaries of CFCL Ventures Limited
|
|
||||||||||||||||||||||||||||||||||||
CAPITAL STRUCTURE
(As on 31.03.2007)
:-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
440000000 |
Equity Shares |
Rs. 10/- each |
Rs. 4400.000 millions |
|
210000000 |
Redeemable Preference Shares |
Rs.10/- each |
Rs. 2100.000 millions |
|
|
Total
|
|
Rs.
6500.000 Millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
416207852 |
Equity shares |
Rs.10/- each |
Rs. 4162.079 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4162.079 |
4162.079 |
4060.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
104.579 |
|
|
3] Reserves & Surplus |
6059.071 |
5449.556 |
4272.982 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10221.150 |
9611.635 |
8437.561 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13067.642 |
4787.639 |
6776.820 |
|
|
2] Unsecured Loans |
5898.020 |
3195.418 |
2559.012 |
|
|
TOTAL BORROWING |
18965.662 |
7983.057 |
9335.832 |
|
|
|
|
|
|
|
|
DEFERRED PAYMENT LIABILITIES |
1334.121 |
1829.461 |
3030.791 |
|
|
DEFERRED TAX LIABILITIES ( Net ) |
3163.221 |
3454.569 |
4089.142 |
|
|
|
|
|
|
|
|
TOTAL |
33684.154 |
22878.722 |
24821.707 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
18132.587 |
15443.869 |
17013.527 |
|
|
Capital work-in-progress |
3650.920 |
1586.904 |
27.333 |
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS |
62.991 |
--- |
--- |
|
|
|
|
|
|
|
|
INVESTMENT |
3659.809 |
2595.722 |
3012.624 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3520.131 |
2492.168 |
2208.018
|
|
|
Sundry Debtors |
5258.419 |
3191.086 |
4033.921
|
|
|
Cash & Bank Balances |
1108.461 |
782.985 |
172.972
|
|
|
Other Current Assets |
65.284 |
44.914 |
20.488
|
|
|
Loans & Advances |
978.373 |
458.460 |
1189.076
|
|
Total
Current Assets |
10930.668
|
6969.613 |
7624.475
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1367.797 |
2469.564 |
2060.908
|
|
|
Provisions |
1404.851 |
1289.801 |
894.457
|
|
Total
Current Liabilities |
2772.648
|
3759.365 |
2955.365
|
|
|
Net Current Assets |
8158.020
|
3210.248 |
4669.110
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
19.827 |
41.979 |
99.113 |
|
|
|
|
|
|
|
|
TOTAL |
33684.154 |
22878.722 |
24821.707 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
|
|
|
Sales Turnover |
25913.060 |
27406.203 |
27094.960 |
|
|
Other Income |
223.493 |
165.805 |
|
|
|
Total Income |
26136.553 |
27572.008 |
27094.960 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2089.576 |
2410.999 |
2162.059 |
|
|
Provision for Taxation |
578.266 |
379.794 |
[44.193] |
|
|
Profit/(Loss) After Tax |
1511.310 |
2031.205 |
2206.252 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
FOB Value of Export |
1037.091 |
844.525 |
0.000 |
|
|
Dispatch Money ( on cash basis) |
2.982 |
2.382 |
0.000 |
|
|
Others (on cash basis) |
11.325 |
12.493 |
0.000 |
|
Total Earnings |
1051.398 |
859.400 |
0.000 |
|
|
|
|
|
|
|
|
CIF VALUE OF IMPORTS: ( on
cash basis) |
|
|
|
|
|
|
Capital Goods (including production stores
and spares parts) |
171.610 |
23.376 |
0.000 |
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Increase / Decrease in Stocks |
(793.853) |
263.439 |
|
|
|
Purchases of Trading Goods |
2601.075 |
5941.456 |
|
|
|
Manufacturing and other Expenses |
19245.745 |
15982.678 |
|
|
|
Freight
to Charter - in- Ship |
237.333 |
632.774 |
24932.901 |
|
|
Financial Expenses |
990.709 |
751.114 |
|
|
|
Depreciation / Amortization |
1765.968 |
1589.548 |
|
|
Total Expenditure |
24046.977 |
25161.009 |
24932.901 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th Quarter |
|
Sales Turnover |
5951.100 |
7207.400 |
8073.300 |
5969.500
|
|
Other Income |
444.100 |
265.200 |
167.900 |
186.200
|
|
Total Income |
6395.200 |
7472.600 |
8241.200 |
6155.700
|
|
Total Expenditure |
4846.900 |
6035.900 |
6641.700 |
5292.000
|
|
Operating Profit |
1548.300 |
1436.700 |
1599.500 |
863.700
|
|
Interest |
321.300 |
196.000 |
194.300 |
208.600
|
|
Gross Profit |
1227.000 |
1240.700 |
1405.200 |
655.100
|
|
Depreciation |
457.800 |
468.500 |
467.300 |
455.800
|
|
Tax |
225.500 |
251.500 |
370.700 |
107.700
|
|
Reported PAT |
617.100 |
593.600 |
633.500 |
193.800
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.52 |
1.20 |
1.58 |
|
Long Term Debt-Equity Ratio |
0.96 |
0.93 |
1.43 |
|
Current Ratio |
0.74 |
0.80 |
0.95 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.85 |
0.98 |
0.98 |
|
Inventory |
8.62 |
10.00 |
10.31 |
|
Debtors |
6.13 |
6.71 |
5.95 |
|
Interest Cover Ratio |
3.20 |
4.20 |
3.23 |
|
Operating Profit Margin(%) |
19.27 |
17.35 |
17.23 |
|
Profit Before Interest And Tax Margin(%) |
12.22 |
11.57 |
11.61 |
|
Cash Profit Margin(%) |
12.88 |
12.30 |
12.16 |
|
Adjusted Net Profit Margin(%) |
5.83 |
6.52 |
6.54 |
|
Return On Capital Employed(%) |
12.70 |
16.10 |
15.31 |
|
Return On Net Worth(%) |
15.24 |
19.99 |
22.27 |
LOCAL AGENCY FURTHER
INFORMATION
HISTORY
The company was incorporated on 7th May, 1985 at Gadepan in Rajasthan having Company Registration No. 3293.
The company was originally incorporated under the name and style of Aravali Fertilisers and was changed to present in January 1989. The company was promoted by Zuari Agro Chemicals Limited.
The company’s plant is a state-of –the-art hi-tech complex built at a cost of Rs. 12.67 billion, spread over an area of 1105 acres (or 447 hectares 4.47 sq.kmts.), containing the manufacturing units, off-site facilities including captive power plant, railway siding and amenities like residential complex, club, school, etc. Snamprogetti of Italy and haldor Topsoe of Denmark provided the technical know-how and engineering and other services for ammonia and urea plant while off-site facilities were built mainly by Toyo Engineering India Limited.
To help farmers in obtaining optimum crop yields, the company has set up a state-of-the-art soil-testing laboratory at Sriganganagar, Rajasthan State which offers free technical advice to the farmers based on results of the soil tests. A model demonstration farm of 15 hectares has also been set up in the plant complex at Gadepan to try out different cropping mixes and packages of practices which, on dissemination would result in improving the income of the farming community in the neighbouring area. With a view to provide all agri-inputs to the farmers from a single window, the company also markets pesticides, bio-fertilisers, seeds, etc. through its outlets.
The company set up a spinning unit namely Birla Textile Mills at Baddi, District Solan, Himachal Pradesh at an outlay of Rs. 1055 millions.
The company was accredited ISO 14001 for Environment Management Systems by DNV, Netherlands. It has acquired a stake in Novasoft, a US based company through US$ 2 million of convertible preferred stock. Consequent to this it has acquired 51% stake in Novasoft. A new company in Singapore viz. Chambal Biotech Private Limited was incorporated as a SPV for its investments in Technico Pty Limited. Chambal Biotech Private Limited, Singapore and Technico Pty Limited, Australia has become the subsidiaries of the company during the year 2004-05.
The company is planning to hive off its software business unit India Software Group as a separate corporate entity. It is also planning to invest Rs. 500 millions either by way of capital or mix of capital and debt component in the new entity. The stake in Novasoft was increased to 90% through investment of $4 million. Further the company has hived off India Software Group (the software division of the Company) into ISG Novasoft Technologies Limited w.e.f. April 1,2005 and ISG Novasoft Technologies Limited was incorporated as wholly owned subsidiary of the company during the year 2004-05.
The company has
amalgamated India Steamship Company Limited (ISCL) with itself with effect from
1st September 2004. According to the Scheme of Amalgamation, it has issued 11
equity shares of Rs.10/- of the company to the shareholders of ISCL for every
20 equity shares of Rs.10/- of ISCL held by them. Further the company has
amalgamated the Shipping Investments Undertaking of Zuari Investments Limited
(ZIL) which was demerged by ZIL and this is also became effective from 1st September
2004. According to the Scheme of Amalgamation, for every 10000 equity shares
held in ZIL, an equity shareholder of ZIL shall be issued 473 5%
Non-Convertible debenture of face value of Rs.100/- each credited as fully
paid-up by CFCL and shall retain 6393.43 equity shares in ZIL. The remaining
3606.57 equity shares held by the equity shares held by the equity shareholder
in ZIL shall stand extinguished. Indo Maroc Phosphore SA Morocco (IMACID) was a
50:50 joint venture office between Cherifien Des Phosphates (OCP), Morocco and
CFCL. During May 2005 OCP and CFCL has sold 1/3rd of their equity stake in
IMACID to TATA Chemicals Limited in order to induct it as third equal joint
Venture Partner in IMACID. Further BHW Birla Home Finance Limited (BBHFL) was a
50:50 joint venture between the company and BHW Holdings AG, Germany. During
November 2004 the company has sold the entire 50% stake to BHW Holdings AG for
a total consideration of Rs.1100 millions.
The company has planned to increased capacity of the existing facility at Baddi
by 39744 spindles at a cost of Rs.1220 millions for manufacture of Cotton Yarn
and the existing facility manufactures Syntheic blended yarn. The plant is
expected to be commissioned by end March 2007.
The company has increased the installed capacity of Yarn Spindles by 2304 Nos.
during 2004-05 and with this expansion the total installed capacity of Yarn
Spindles has increased to 39552 Nos.
The company has signed a shipbuilding pact with Hyundai Heavy Industries
Company Limited The agreement was signed during march 2006 and as per the
agreement, Chambal would build two Afamax Tankers.
· An integral part of the Rs .45000 millions K K Birla group, the company, which was set up in 1985 has come a long way since.
· It was promoted by Zuari Industries Limited, which already held a dominant position in the Indian fertilizer industry and went public in 1993.
· Today, the company operates two hi-tech gas-based nitrogenous fertilizer plants (production commenced in phases w.e.f January 1994 and October 1999 respectively), both at Gadepan near Kota in Rajasthan.
· Over the years, besides organic growth, the company has effectively used joint ventures and acquisitions for diversification and expansion, albeit sometimes into unrelated areas .
· Citing the high growth prospects in the IT Services space, the company forayed into the software services business in 1999 through its division, India Software Group (I S G) headquartered at Chennai.
· Since then, this division has grown at a fairly brisk pace but has remained small in context of the company’s bread and butter business, namely fertilizers.
· Realizing the need for consolidation and focus to survive in the dynamic IT industry, in November 2001, the company acquired a 51% stake in the New Jersey based Nova S of t Information Technology Corporation (an existing 18 - year old company), which it further increased to 90% in Q1 FY04. The total amount invested in Nova S oft is Rs. 180 millions.
· The company also forayed into the retail home finance business by acquiring the beleaguered I T C Classic Home Finance Limited in 1999. In September 2000, it roped in B H W Holding AG of Germany, one of the largest home finance company in Europe, to pick up a 50% stake in the venture.
· I n 1999, the company also entered into a 50-50 US $ 204 million joint venture project [Indo Maroc Phos phore S A (I MACI D)] , with Office Cherifien Des Phosphates (OCP) of Morocco, the largest producer of phosphoric acid in the world. The project would produce 3,30,000 tonnes p.a. of merchant grade phos phoric acid (54% of P2O5).
· In sync with its bid to be present in all sunrise industries, the company entered into a 50-50 joint venture with Technico Pty Limited, Australia, a reputed agri-biotechnology company in March 1999. This JV, the company Chambal Agritech Limited was set up to produce 'Early-generation.
· High- health status' seed potato in India. It has recently infused fresh funds into the venture amounting to Rs 1500 millions.
· In a complex structured transaction, the company had decided to invest in a phased manner, a sum of Rs. 600 millions into Technico Pty Limited, Australia through a special purpose vehicle (S PV) – Chambal Biotech Private Limited, Singapore. Consequent to the same, Technico will become a 51% subsidiary of Company. This 51% subsidiary would also be a 50% JV partner in Chambal Agritech Limited as mentioned earlier. So far, it has invested Rs. 16470 millions into the venture.
· In another landmark, the group emerged a successful bidder for the Government owned Paradeep Phosphates Limited (PPL), when it was put on the block during the first round of disinvestment. This acquisition again was through Zuari Maroc Phosphates , a JV between the Zuari – the company combine and the OCP Group of Morocco in February 2002.
· In the very first year after privatization, PPL reported a 3-fold increase in topline and a 75% reduction in losses .
BUSINESS:
New Fertiliser
Pricing Policy
The Government of India had introduced New Pricing Scheme (NPS) for Urea w.e.f.
April 1, 2003. NPS was to be implemented in three stages. Stage I and II of the
NPS were completed on March 31, 2004 and September 30, 2006, respectively.
Stage III of NPS commenced on October 1, 2006 and will continue till March 31,
2010.
Arising out of changes in some of the parameters like
capacity utilization norms, pre-set energy consumption norms, etc.,
implementation of Stage III policy is expected to have a negative impact on
profitability. However, the Company has represented to the Government of India
to make the norms for Gadepan II Plants more equitable.
As per the NPS, the distribution of Urea was to be fully decontrolled
from April 1, 2004. However, the Government decided to continue with 50%
decontrol during the year 2006-07.
The Company has prepared the accounts on the basis of notified concession
prices for Urea under the New Pricing Scheme further adjusted for input price
escalation / de-escalation and expected impact of Stage III policy with effect
from October 1, 2006. The concession in respect of Urea produced in excess of
100% capacity from Gadepan I and II Plants has been accounted for on an
estimated basis in line with the known policy parameters.
Deal of the year
The Company has arranged a foreign currency loan of
US$ 154 million from a consortium consisting of ING Bank, BNP Paribas, KFW and
Societe Generale to finance building of three aframax tankers. The facility is
backed by Korea Export Insurance Corporation. This was the first time that
Korean export credit agency has supported the export of ships into India.
This deal was awarded as the Deal of the Year - 2006 by Trade Finance Journal
published by Economy Institutional Investor, Plc.
Joint Ventures and
Associates
(i) Indo Maroc Phosphore S.A., Morocco
(IMACID)
During the year 2006, IMACID produced 362,945 MT of Phosphoric Acid (P2O5) at a daily average plant rate of 1237 MTPD. Sales during the period were 361,769 MT of P2O5.
IMACID earned cash profit of MAD 295.8 million (net of tax) during the
year 2006 as against MAD 318.4 million in 2005. The decrease in cash profit for
2006 was mainly on account of higher tax outgo, unfavourable impact of exchange
rate variation and lower production and sales of P2O5. Lower production was
mainly due to longer plant shutdown required to implement the revamp
project.
The Capacity Augmentation Project-II to increase annual capacity of P2O5 from
365,000 MT to 430,000 MT was completed and new capacity went on stream in
September, 2006. The project was commissioned at a capital cost of MAD 214.9
million as against projected cost of MAD 238 million.
(ii) Zuari Investments Limited
(ZIL)
ZIL is a member of National Stock Exchange of India Limited for equity as well as Futures and Options (FandO) segment and Over the Counter Exchange of India. ZIL is also a depository participant with National Securities Depository Limited and Central Depository Services (India) Limited and a Category-II Registrar and Share Transfer Agent registered with the Securities and Exchange Board of India.
During the year,
ZIL has become a member of the Bombay Stock Exchange to complete its bouquet of
Broking Services.
ZIL has promoted Zuari Chambal Insurance Solutions Limited (ZCISL) as its
wholly owned subsidiary. This subsidiary has commenced operations as a Direct
Broker for Life and Non-Life segment after receiving the licence from Insurance
Regulatory and Development Authority.
ZIL has now become one stop shop for Stock Broking, Depository Services,
Investment Advisory Services and Insurance Broking Services (through its
subsidiary) and is fully poised to reap the benefits of a buoyant capital
market.
During the financial year 2006-07, the income of ZIL from various services was Rs. 58.094 millions and cash profit was Rs. 15.599 millions.
Subsidiaries
(i)
Chambal Biotech Private Limited
Chambal Biotech is a Special Purpose Vehicle of the Company for making investment
in Seed Potato Business and it holds 77.64% equity stake in Technico Pty.
Limited, Australia.
(ii) Technico Pty. Limited, Australia and its Subsidiaries
(Technico)
The Technico business continued on its growth curve
and has penetrated deeper into India, China, Middle East and African markets.
The strategy of focusing on the emerging markets of China and India and
expanding the business from these bases through domestic market penetration and
export market initiatives is working, satisfactorily.
Strong brand recognition in the Indian market has helped to establish the
Technico product as the quality leader. The year 2006-07 has seen growth in
sales revenues and profits. This business, like the rest of the Potato seed
industry was challenged by the continuous bad weather in the major seed growing
region of Punjab which resulted in somewhat lower yields.
The China business is in the early stage of building its field seed
pipeline. Technico is continuing to grow in exports. In 2006-07 Technico
exported about 70% of its TECHNITUBER@ seed to markets in the Middle East and
Africa.
Although Technico is at an early stage in the start-up cycle with its Canada
business, the market is beginning to recognize the quality benefits of the
Technico's seed products.
Overall, the
Technico has achieved across the board gains in the business over 2005-06. On
an EBIDTA basis, Technico has delivered a profit of AUD 1.15 million during the
year 2006-07 against a loss of AUD 0.85 million in 2005-06.
For the year ended March 31, 2007, Technico achieved sales revenue of AUD 8.97 million and cash profit of AUD 0.3 million (versus a cash loss of AUD 1.85 million in 2005-06).
(iii) CFCL Overseas Limited,
Cayman Islands (CFCL Overseas)
CFCL Overseas was incorporated during the year as a Special
Purpose Vehicle (wholly owned subsidiary) of the Company for consolidation of
its software business. As on date, the total investment of the Company in CFCL
Overseas stands at Rs. 1850.000 millions.
(iv) NovaSoft Information
Technology Corporation, USA and its Subsidiaries (NovaSoft)
During the year under review, NovaSoft was engaged in
Mortgage business vertical with focus on the residential mortgage segment.
NovaSoft growth strategy comprises of acquiring the best software technology
platform vendors, industry-leading consulting services and on-shore BPO
capabilities via inorganic growth. As a part of this strategy, NovaSoft has
acquired residential mortgage division of Fair Isaac, a US based listed company.
This acquisition will broaden the product lines of NovaSoft and will enable it
to participate in substantially all aspects of the mortgage processing
cycle.
The Revenue and Cash Losses of NovaSoft for 12 month period ended March
31, 2007 were US $ 15.01 million and US $ 7.10 million, respectively.
(v) ISG
Novasoft Technologies Limited (ISG Novasoft)
During the year under review, ISG Novasoft has embarked in the third-party
India BPO sector, focusing on the broad area of asset based lending services,
with an initial thrust in residential mortgages. ISG Novasoft is executing a
unique and innovative platform-based BPO strategy in scaling up transactional
BPO services in India to capture the compelling cost advantages that an India
back-end offers.
The management of Chambal Fertilisers and Chemicals Limited is pleased to present its analysis report covering segment-wise performance and outlook.
The Company has four business segments viz. Fertiliser,
Textile, Shipping and Food Processing of which the Fertiliser Division is by
far the largest. The Urea manufacturing facility of the Company with an annual
capacity of 1.73 million MT is the largest in the private sector. The aforesaid
business activities are supported by an extensive marketing network.
FERTILISER DIVISION
Industry Structure
There
has been no capacity addition in India since 1999.India currently faces
shortages of nitrogenous and phosphatic fertilizers. Urea imports during 2006-07
were over 5 million MT while DAP imports were around 2.6 million MT. The Urea
and DAP import prices witnessed record highs during 2006-07. With the
availability of Re-gasified Liquified Natural Gas(RLNG), gas availability for
fertiliser plants has increased. However, overall availability of natural gas
for achieving 100% of reassessed capacity utilization in the gas based
fertilizer plants, is still inadequate. These gas based plants use Naphth to meet their shortfall of RLNG.
Developments in Government Policies
New Pricing Scheme (NPS) Stage III has been announced effective October 1, 2006 and will continue until March 31,2010. The entire Urea industry was divided into six groups based on feedstock used and vintage of the plants when NPS was introduced from April 1, 2003. Same classification will continue during State III with updation ofconversion cost and changes in energy and capacity utilization norms.
Pricing of additional production upto 110% of re-assessed capacity will be as per the existing New Pricing Scheme (Phase II). Additional production above 110% shall be eligible for concession price subject to maximum of Import Parity Price. While the contours of the Fertiliser Policy are explicit, the final group-wise prices are yet to be notified.
Natural Gas Scenario
The overall fertilizer demand considering
feedstock conversion, revamp, expansion, etc. is
expected to be around
76.00 MMSCMD in the year 2010-11. With finds in KG Basin on Eastern Coast, the availability of gas beyond 2009-10 is expected to improve. However, demand-supply gap is still envisaged due to growing requirement of gas in other industrial and domestic sectors, resulting in prices being driven by market dynamics.
Opportunities
In
view of the commissioning of Vijaipur - Kota gas pipeline in year 2007 coupled
with the supply-demand outlook for urea and discovery of new gas sources in KG
Basin, there is an opportunity for the Company to grow. Major de-bottlenecking
of Gadepan Plants will be considered once the long term Fertiliser Policy is
finalised by Government of India. However, the Company has initiated Energy
Conservation Projects to minimize energy consumption in both fertiliser plants at Gadepan.
Operational and Financial Performance
The performance of Fertiliser Division is summarized below:
2006 - 07 2005
- 06
Urea Production
(MT in millions)
1.926 1.902
Sales including Agri inputs (Rs.in millions)
222.872 240.059
EBIDTA (Rs. in millions)
38.997 41.423
The highest ever urea production of 1. 926 millions MT was achieved
during the year.
The Company also
sold the highest ever urea quantity of 1.927 million MT during the year 2006-07
against the last year sale of 1.890 millions MT. During the year, all India
consumption of urea has increased to 24.500 millions MT compared to 22.100
millions MT in the previous year. The Company also marketed other fertilizers
aggregating to 0.146 millions MT against the previous year sale of 0.340
millions MT. No Di-ammonium Phosphate and Muriate of Potash were Imported due
to adverse policy regime. The Company is gradually strengthening its position
in other agri inputs. The sale of pesticides during the year increased to Rs.
670.000 millions from Rs. 570.00 millions in previous year. The Company also
marketed varietal seeds of wheat and paddy worth Rs. 1 92.300 millions against the previous year sale of Rs. 1
2.440.000 millions. In order to help maintain the soil fertility, the Company
has sold 2514 MT of bio-fertiliser against the previous year sale of 2016 MT.
The Company has entered into a new segment of commodity trading by purchasing
about 50,000 MT of Mustard and 1400 MT of Cumin. The Company has an extensive
reach of market with 1,241 dealers and 15,471 village level outlets. Under its
Customer Relationship Program called "Uttam Bandhan", the Company is
in direct touch with 75,000 farmers. This program helps the Company in building
brand equity in the market, launching of new products and more importantly educating
the farmers to improve yields and production.
HUMAN RESOURCSE AND
DEVELOPMENT
Training and
Development:
Programmes to cover all employees and nominated around 30% of the employees to the relevant External Training Programmes conducted by reputed institutes and Business Schools. The training included various soft skills and behavioral areas such as Communication and Presentation, Time Management, Assertiveness, Leadership and Team Building, Business Negotiation, Stress Management, etc. The functional programmes included HR Professional Development, Operations Management, Total Quality Management, Kaizen, Materials
Management and Sales and Marketing Management. With this focus, the Company was able to achieve around 4 days of training per employee this year.
BIRLA TEXTILE MILLS -
SPINNING DIVISION
Industry Structure
Indian textile and clothing industry witnessed significant changes during last 2-3 years. The excise and customs duties applicable to the industry got substantially rationalized and reduced. The economy of the Country started growing at a much faster pace. The bilateral quotas that regulated international trade in textile products for over 45 years were abolished in December 2004. These developments imparted an impetus to the industry. This has been discernible in the investment trends and export growth during the last couple of years. Overall Indian market has grown from US $ 36 billion to US $ 52 billion at a rate of 10% per annum between financial years 2002-2006. Growth in domestic consumption has been driven mainly by growth in per capita income from Rs. 17,883 to Rs.25,788 during 2001-06. Export growth has been driven by growth in world trade and increase in India's share in world trade rising from around 3% in financial year 2001-02 to around 4% currently.
Investment in the industry has been to the tune of Rs.430.000 millions during 2003-06. Acceleration in investment was due to increase in size of domestic as well as export market and various policy initiatives including extension of Technology Upgradation Fund Scheme.
Opportunities and
Threats
Indian Textile and Clothing Industry is poised for a significant growth. It is expected to reach a size of US S 110 billion by the year 2012. In order to achieve the projected growth, Industry needs to double the production by Financial Year 2011-12 from current level. This will require investment to the tune of Rs. 1940.0.00 million (US $ 43 billion) including investment of Rs. 550.000 millions in spinning.
However, recent spurt in Rupee value has a dampening effect on exports. Slowdown in consumer spending and investment, are some of the key risk factors. Outdated labour laws are also hindering investment. Government needs to reform labour laws quickly and address infrastructural constraints and transaction costs. Import content of textile capital goods is currently over 70%. In order to capitalize on global opportunity, the Government needs to provide incentives by way of duty free imports of machinery by the Textile Industry and rationalize the excise duty on indigenous textile capital goods manufacture.
Outlook
Growth in domestic market will be driven by strong demographic and consumption trends. Increasing retail penetration, higher disposable income levels and rising urban population augurs well for the growth of industry. Increase in nuclear families is expected to drive strong growth for home textiles. Strong growth in IT/ITES industry, hotel industry and health care delivery market will drive infrastructure demand for furnishing items.
Uncompetitive manufacturing in developed world has resulted in dismantling of spinning and weaving capacities in USA, western Europe, Japan, South Korea, etc. and relocation to cheaper competitive Asian countries like India.
To seize the opportunities presented by the new economic environment in the textile industry, the Company has doubled spindlage with the addition of 39,744 spindles for manufacture of cotton yarn at Baddi, which was completed on schedule. The Company is exploring the possibilities of further expansion.
Material Development
in Human Resources / Industrial Relations front including Number of People
Employed
Being a labour intensive industry, training and development of human resources is of paramount importance. Well
structured in-house training programmes conducted by experienced and competent faculty have improved the skill levels and the employee commitment. The training efforts at the shop floor level have yielded excellent results. Presently, the manpower deployment comprises of 1672 workers, 241 staff members and 539 trainees.
Industrial relations remained cordial during the year.
INDIA STEAMSHIP - SHIPPING DIVISION
Industry Structure
Major portion of worldwide trade continues to move by sea and hence Shipping Industry will always have a significant role in the global economy. Recent years have seen the exponential growth in maritime trade. Seaborne cargo growth in overall terms had been running at an average rate of 4% year on year for the years 2000-05, and has since picked up to about 6% a year. More pertinently, tonne mile demand has soared as raw materials are sourced in ever greater quantities from increasingly longer distances. Last 5 years have seen a major growth in tanker capacity and dry bulk trade has also witnessed high growth in last 2 years.
With the oil price continuing to rule high, focus has shifted to offshore sector and there has been a fair amount of ordering for Oil Rigs, Offshore Supply and Multi-purpose Support Vessels for the offshore industry. India Steamship, however, continues to focus on the aframax tanker segment.
Opportunities and Threats
Oil demand continues to grow at 2% per annum excluding short term aberrations during huge price volatility.
This is the fifth year of a strong growth in freight rate history. Some analysts are concerned about the huge new building capacity likely to come in by the end of 2010. The phase out of single hull tankers will definitely provide some relief and will be a balancing factor. Increasing refining capacities in India and Middle East will provide the dislocation factor, since the consumers of products will be USA and the EU countries. This will bring in significant tonne mile increase with products moving from India and Middle East to the West. China and India are providing the optimism in the projected growth rates. The US slow down is definitely going to be a dampener.
Outlook
US economy is slowing down with most analysts favouring a brief correction, or a soft landing. Other economies are unlikely to secure immunity from this development. Global insight foresees a modest decline in global growth.
Year 2006 ended on a whimper as mild winter weather and high stocks reduced oil demand. Average spot tanker earnings fell 5% in 2006. A modern 105,000 DWT aframax tanker earned about USD 39,000 per day in 2006 compared with about USD 42,000 per day in 2005.
The crude tanker fleet grew by a modest 5.2% to reach 265 million DWT by end of 2006. The product tanker fleet grew by 11.6% to reach 55 million DWT by end of 2006.
Curiously, average 5 year old tanker values rose over 4% during 2006. Average new building tanker prices rose9% in 2006 on strong demand and tight supply.
The crude tanker earnings in the year 2007 could outperform 2006 while product tanker rates may disappoint. Product tankers may perform better after new refineries in the East go on-stream. The year 2006 witnessed de-linkage between earnings and asset values as they set off in opposing directions with earnings going down but asset prices going up. This was testimony not only to long term belief in the future viability of the tanker markets but also an indication of excess liquidity with too much money chasing too few opportunities. If earnings hold up on the crude side in 2007 values may be vindicated but it is expected that inflated product tanker values will be tested by continued relatively weak earnings. Contrary to most forecasts, some analysts are optimistic on the bigger crude tankers in 2007. This optimism is founded upon doubling of oil demand growth this year after weak growth in 2006. Relatively lower average oil prices this year should stimulate consumption in the US, Europe and Asia. The intended doubling of the US strategic petroleum reserve and the stock building plans of China, India and others will support oil demand in 2007. Meanwhile, the slower rate of supply growth in the large crude oil tanker segments is calming any fears of over tonnaging emanating from such a large order book which is largely neutralized by the length of its delivery horizons.
Risks and Concerns
The market outlook is based on certain fundamentals. But any issues such as natural disasters, geopolitical concerns, etc. can alter it significantly which has to be continuously borne in mind. Availability of good quality officers who are the key personnel who man and operate the high value assets at sea, will continue to be in short supply. Shipping Ministry may allow Indian flag vessels to recruit foreign nationals with certain restrictions. This may improve the manning situations marginally.
FOOD PROCESSING UNIT
Industry Outlook
Food Processing Industry has enormous significance for development of agriculture. Food processing can integrally link agriculture to the consumers in the domestic and International markets. While agriculture sector in India contributes one fourth of the Country's GDP and provides employment to approx. two third of the population, Food Processing Industry alone accounts for 6% of the GDP. India's vast consumer markets are slated to include 500 million consumers by 2010, with Food Processing Industry expected to treble from 6% to 20% with its share in the Global Agro Trade expected to rise to 3%. The advantage of huge raw material base for food processing if leveraged optimally, can translate into India becoming a leading food supplier to the world.
The total size of India's Frozen Food Market is estimated at Rs.8000.000 millions and Frozen vegetable market is estimated at Rs.900.000 millions.
The Government of India and various State Governments are offering incentives to the Food Processing Industry especially for development of cold chains.
Production and
Processing:
The Company owns and operates ISO 9001-2000 and HACCP certified plant and a leased plant, for processing
frozen vegetables in Sonepat and Karnal districts of Haryana. The Company also outsources frozen peas processing under its supervision at other facilities in Uttarakhand and UP The raw material is procured through a combination of market and direct purchases from farmers. Products like American Sweet corn, Baby corn and Broccoli are procured directly from farmers while products like green peas, carrots, beans and cauliflower are procured from the market.
Entire raw material procured is processed through IQF (Individual Quick Freezing) technology in less than 48 hours of harvest. The raw material as well as finished goods is strictly manufactured as per stringent quality parameters.
Cold Chain Infrastructure
Besides the processing facility, the company has captive storage capacity of 3700 MT, located at Sonepat and Karnal. Storage space of 3500 MT is hired whenever so required.
Human Resources
Development and Industrial Relations:
A high attrition rate was observed on account of major investment in retail sector and cold chains. There are 56
personnel in the facility.
Industrial relations in the Division remained cordial during the year.
Fixed Assets:
Ø Land – Freehold
Ø Land –Leasehold
Ø Buildings
Ø Leasehold Improvements
Ø Railway Siding
Ø Plant and Machinery
Ø Equipment and Appliances
Ø Furniture and Fittings
Ø Vehicles
Ø Vehicles ( on Finance Lease)
Ø Ships
Trade Reference:
Ø Panchvati Valves and Flanges Private Limited
Ø Packwell Plastic Industries
Ø Competent Electric Company
Ø Spiral Seal Gaskets Private Limited
Ø Shiv Ganga Paper Converters Private Limited
Ø Scientiech COL
Ø Shree Pesticides (Private) Limited
Ø Sagar Metals
Ø Dembla Valves Private Limited
Ø Mold Well Products
Ø Cylok Pneumatechnics
Ø Dashmesh Auto Engineers
Ø Indana Rubber Industries
Ø Prachi Products
Ø Decohome
Ø Asian Paper Cone Industries
Ø BoxBoard Packaging
Ø Jayantika Packaging
Ø Kashmir Paper Industries
Ø Nepaso Poly-fabrics and Sunshine Offset Press
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2008
(Rs. In millions)
|
Particulars |
Stand Alone |
Stand Alone |
||
|
|
Year Ended |
Year Ended |
||
|
|
31.03.2008 |
31.03.2007 |
31.03.2008 |
31.03.2007 |
|
Net Sales / Income from Operations |
27206.500 |
25918.400 |
32060.700 |
29474.800 |
|
Less: Excise Duty on Sales |
5.200 |
5.300 |
5.200 |
5.300 |
|
Net Sales |
27201.300 |
25913.100 |
32055.500 |
29469.500 |
|
Other Income (Net) |
821.700 |
473.000 |
794.900 |
586.400 |
|
Total Income (1+2) |
28023.000 |
26386.100 |
32850.400 |
30055.900 |
|
Total Expenditure (a to g) |
24665.300 |
23131.800 |
29497.200 |
27081.000 |
|
(Increase)/Decrease in Stock in Trade and Work in Progress |
711.300 |
[793.900] |
707.900 |
[843.900] |
|
Consumption of Raw Materials |
7817.000 |
9611.600 |
9450.300 |
10920.800 |
|
Purchase of Traded Goods |
2543.400 |
2601.100 |
2543.400 |
2601.100 |
|
Employees Cost |
724.600 |
692.500 |
1692.800 |
1364.400 |
|
Depreciation and Amortization |
1849.400 |
1772.000 |
2457.700 |
2125.500 |
|
Power and Fuel |
5608.200 |
5059.900 |
5704.900 |
5162.700 |
|
Others |
5411.400 |
4188.600 |
6940.200 |
5750.400 |
|
Profit before Interest, Exceptional Items and Tax
(3-4) |
3357.700 |
3254.300 |
3353.200 |
2974.900 |
|
Interest |
918.600 |
921.100 |
960.200 |
992.500 |
|
Profit before Exceptional Items and Tax (5-6) |
2439.100 |
2333.200 |
2393.000 |
1982.400 |
|
Exceptional Items |
241.700 |
86.700 |
726.300 |
86.800 |
|
Profit before Tax and after Exceptional Items
(7+8) |
2680.800 |
2419.900 |
3119.300 |
2069.200 |
|
Tax Expense (a to d) |
642.800 |
665.000 |
756.300 |
688.500 |
|
Fringe Benefit Tax |
12.600 |
12.300 |
15.000 |
13.500 |
|
Current Income Tax |
944.000 |
927.100 |
1055.100 |
949.400 |
|
Deferred Taxation |
[318.900] |
[278.300] |
[318.900] |
[278.300] |
|
Tonnage Tax |
5.100 |
3.900 |
5.100 |
3.900 |
|
Profit after Tax and before Share in Profit /
(Losses) of Associates and Minority Interest (9-10) |
2038.000 |
1754.900 |
2363.000 |
1380.700 |
|
Share in Profit of Associates |
--- |
--- |
8.300 |
1380.700 |
|
Share of Minority Interest |
--- |
--- |
8.300 |
6.000 |
|
Net Profit (11+12+13) |
2038.000 |
1754.900 |
2374.300 |
1401.900 |
|
Paid-up Equity Share Capital (Face value of each Share – Rs. 10/-) |
4162.100 |
4162.100 |
4162.100 |
4162.100 |
|
Reserves excluding Revaluation Reserves |
7220.600 |
6059.100 |
7498.400 |
4989.900 |
|
Basic and Diluted Earning per Share (Rs.) |
49.000 |
42.200 |
57.000 |
33.700 |
|
Aggregate of
Public Shareholding |
|
|
|
|
|
Number of Shares |
21234.100 |
21481.900 |
21234.100 |
21481.900 |
|
Percentage of Shareholding |
510.200 |
516.100 |
510.200 |
516.100 |
NOTES:
1. The results for
the year ended March 31, 2008 have been prepared on the basis of notified
concession prices for urea under the New Pricing Scheme (NPS), further adjusted
for input price escalation / de-escalation, as estimated on the basis of
prescribed norms. Pending notification of concession price under the NPS –
Stage III effective October 1, 2006, the concession price have been accounted
for, based on estimated impact of the NPS-Stage III parameters.
2. Pending
notification of the final concession price applicable for the imported
fertilizers for the period October 2007 – March 2008, the same has been
accounted on an estimated basis in line with the known policy parameters.
3. During the
year, the Company produced 139,842 MT and 130,996 MT of urea beyond 100% of
re-assessed capacity of Gadepan I and II fertilizer plants respectively.
Contribution from such additional production and sales of urea beyond
re-assessed capacity has been accounted as per known policy parameters.
4. The Consolidated
Financial Results have been prepared in accordance with generally accepted
accounting principles and comply with the Accounting Standard - 21 on
'Consolidated Financial Statement', Accounting Standard - 23 on 'Accounting for
Investment in Associates in Consolidated Financial Statement' and Accounting
Standard - 27 on 'Financial Reporting of Interest in Joint Ventures', issued by
the Institute of Chartered Accountants of India.
5. In the above
Consolidated Financial Results, the results of all the consolidated entities
represents their operations for the period April 2007/ date of acquisition to
March 2008/date of disinvestment, excepting one overseas Joint Venture where
the 12 months period ended on December 31, 2007.
6. Planned
shutdown of Gadepan I and II fertiliser plants was taken for a period of about
10 days and 6 days respectively in the month of March 2008.
7. In pursuance of
the Companies (Accounting Standard) Rules 2006 pertaining to recognition of
foreign exchange fluctuation on fixed assets related to transactions entered
after April 1, 2004, foreign exchange gain amounting to Rs.475.000 millions for
the year ended March 31, 2008 has been credited to profit and loss account and
classified under Other Income.
Further, as per
the requirements of Clause 41 of the Listing Agreement, previous year figures
were recast in line with the present accounting policy to make them comparable.
Accordingly, profit before tax for the year
ended March 31,
2007 was increased by Rs.243.600 millions on account of foreign exchange gain.
8. During the
year, the Company has received fertilizer Bonds of Rs. 3835.800 millions from
the Government of India against the outstanding amount of subsidy. An amount of
Rs. 187.500 millions has been debited to the Profit and Loss Account for the
year ended March 31, 2008 on account of diminution in the value of these bonds
due to the prevailing market price of these Bonds being lower than the cost
thereof.
9. During the
quarter ended March 31, 2008, the Company made investment of Rs. 155.300
millions (USD 3.925 Million) in its wholly owned subsidiary namely CFCL
Overseas Limited, Cayman Islands.
10. Exceptional
items represent gain of Rs. 229.000 millions on sale of old ship namely M.T.
Ratna Shalini and gain of Rs. 12.700 millions on the sale of Food Processing
unit.
11. The Board of
Directors has recommended a dividend @ 18% on Equity Shares (excluding Dividend
Distribution Tax).
12. No investor
complaint was pending at the beginning of the quarter ended March 31, 2008.
During this quarter, 61 complaints were received and all of them were resolved.
13. The figures
related to previous year have been regrouped and/or re-arranged wherever
necessary to make their classification comparable.
14. The Audit
Committee of the Board had reviewed these financial results and the Board of
Directors approved
the same on May
15, 2008
AS PER WEBSITE
Chambal Fertilisers is a company in the KK Birla Group. Chambal was promoted by Zuari Industries Limited
(ZIL) and its two hi- tech nitrogenous Fertiliser Plants- Gadepan-I and
Gadepan-II are located at Gadepan, Rajasthan, India. The Gadepan Fertiliser Complex is the largest in the Private Sector in
India. It has three Division- Agri-inputs, Shipping and Textiles. It has
business interests through subsidiaries and Joint Ventures in the areas of
software, power, financial and insurance services and has a phosphoric acid
facility in the Kingdom of Morocco.
Its Agri Inputs Division has a
network in ten states spread over central, western and northern India. With
1,500 dealers and around 20,000 village level outlets, its distribution
penetrates into remote areas where a complete range of products and services
are available for marginal to the progressive farmer. It has an excellent
extension system to serve the farmers and disseminate information. Its two soil
and water testing laboratories test around 10,00,000 samples per annum and
address related issues.
India Steamship, Chambal’s Shipping
Division has three Aframax Tankers and has plans to rapidly increase its
fleet to seven in the coming two years.
Birla Textile Mills, Chambal's Textile
Division, based in the state of Himachal Pradesh, India has modern
facilities to manufacture yarn. The quality has been consistently well accepted
and about one fourth of the produce is exported.
The company is located at Gadepan, 35 kms. from Kota, on the Kota -
Baran National Highway No.76. Kota is the hub of industrial activity in the
state of Rajasthan. Chambal operates two hi-tech nitrogenous fertilizer plants
and is the largest fertilizer complex in private sector in India. The two mega
fertilizer plants having a total re-assessed capacity of 1.7292 million tons of
urea per annum. Both Gadepan-I and Gadepan-II phases represent a total
investment of over Rs. 25000 millions. Gadepan-I was commissioned in December
1993 and its commercial production commenced in January 1994. It is designed to
produce 1,350 MT of Ammonia by Haldor Topsoe, Denmark technology and 2,348 MT
per day urea based on Snamprogetti, Italy process. Commercial production at
Gadepan-II started in October 1999. Its Ammonia plant is based on Kellog (USA)
technology and the Urea Plant is based on ACES process of TEC, Japan. The
Ammonia Plant is a single stream, having a design capacity of 1,350 MT ammonia
per day, like Gadepan-I. The Urea Plant is designed to have twin streams, each
with the design capacity of 1,175 tons of urea per day. Gadepan-I is based on
natural gas as the feed stock while the fuel demand is met by naphtha.
Gadepan-II is designed both for naphtha and natural gas as feed stock. Toyo
Engineering India Limited has designed the Off-sites of both for Gadepan-I and
Gadepan-II.
Subject caters to the Northern and Western regions of India and supplies
urea to nine states. The company markets urea under the brand name ‘Uttam
Veer’. With ten regional offices, Chambal has a 1,000-strong dealer network and
14,000 village level outlets to assist distribution. Besides urea, other
agri-inputs as other fertilisers, plant protection chemicals, seeds and
bio-fertilisers are being made available to the farmers under the ‘single
window’ concept. These products are being sourced from reputed suppliers and
sold under the ‘Uttam’ umbrella brand. Extensive promotion activities are
undertaken to promote ‘Uttam Veer’ by their dedicated team of field officers.
Today, Chambal is India’s largest urea unit in the private sector. The soil
testing facilities at Sri Ganga Nagar and Agra use sophisticated testing tools.
Chambal's website uttamkrishi.com,
a website dedicated to the Indian farmer, has been launched by Chambal. It is
both area and crop specific and is an endeavour to help improve farm
productivity by providing online information on various agricultural practices.
It answers queries that a farmer may have and provides information on market
prices of farm produce as also the weather forecast. In order to assist the
farmers access it, the company has set up kiosks and has an arrangement with
Agriculture Universities, Agriculture Research Stations and Krishi Vigyan
Kendras.
Growing rapidly with the best technology, proven systems and procedures, ‘Uttam
Veer’ is positioned as a new age fertilizer for the new-age farmers.
Chambal aims to be a partner in providing India’s food security and the
Zuari-Chambal vision is to be one of the largest fertilizer combine in the
world.
Chambal Agritech
Limited
Founded in 1999 as a joint venture between Technico Pty Limited, Australia, a
reputed agri-biotechnology company and Chambal Fertilisers and Chemicals
Limited, Chambal Agritech Limited was set up to produce 'Early-generation
High-health status' seed potato in India. The state-of-the-art seed production
facility can produce upto 20.52 million seeds per annum. These miniature tubers
when field planted can produce 50,000MT of 'Early-generation' seed potato in
just two seasons.
Chambal Fertilisers and Chemicals
Limited - Food Processing Unit
Chambal's processed food unit is located at Sonepat, Haryana, just 40
kms. away from Delhi. The unit has pollution-free and pristine surroundings
coupled with advanced facilities of processing, packaging and freezing of high
quality fruits and vegetables.
Being closer to the source is the biggest advantage that CFCL passes on
to its customers. All 'EVERFRESH' products ensure the highest standards of
nutrition, taste, hygiene and quality as no preservatives are added during
processing or packaging.
First and foremost, all fruits and vegetables are processed and packed
on the same day of their procurement to ensure minimal loss of nutritious
elements. EVERFRESH conforms to both national and international standards of
quality and hygiene including FPO. The fruits and vegetables are packed and
stored at -20°C in superior food grade packaging. By using the latest and
advanced German 'Individually Quick Freezing' (IQF) Technology, high standards
of hygiene are maintained at every stage of processing.
Birla Textile
Mills
Birla Textile Mills (BTM) is a division of Chambal Fertilisers and
Chemicals Limted, a flagship company of the K.K. Birla group of companies. The
state-of-the-art unit of Birla Textile Mills - with 37,248 spindles - located
at Baddi (Himachal Pradesh) commenced commercial production in May 2000. The
ultra-modern fibre-dyeing machinery produces synthetic grey and dyed blended
yarn in various single and dyed counts for the domestic and export markets.
BTM is committed towards providing quality products to its domestic and
international customers, under strict delivery schedules. Operating on the
philosophy of ‘Complete Customer Satisfaction’, BTM applies ‘Strict Quality
Control’ at every stage of production, with testing conducted on the latest
testing equipment. BTM has bagged the coveted ISO 9001:2000 certification for
its Quality Management Systems for the 'Manufacture and Supply of Grey and Dyed
Synthetic and Blended Yarn excluding Design and Development Activities' from
the Bureau of Indian Standards (BIS) for the period May 2003-06.
BTM's biggest asset is its committed workforce of dynamic, dedicated and
experienced professionals - technicians, managers and workers.
BTM would continue to focus on Research/ Development and Innovation to
facilitate the development of new products that meet global requirements.
ISG NovaSoft
Technologies Limited
Chambal Fertilisers and Chemical Limited made inroads into the software
business in 1998 by promoting India Software Group (ISG) - its software
division and setting up a world-class software development centre in Chennai.
Subsequently, Chambal invested strategically in the preference stock NovaSoft
Information Technology Corporation - a Company headquartered in New Jersey, USA
Today, ISGN, with its legacy business strengths spanning outsourced product
development and applications maintenance of close to a decade, has shifted its
focus to providing technology solutions and services to the 3 trillion dollar
US mortgage market. With primary thrust in the residential mortgage space, ISGN
has by way of multiple acquisitions over a short span of time gained complete
domain expertise, market dominance and a unique position as a technology
solution and services provider with BPO capabilities and one single domain
focus.
ISGN’s vehicle for transforming the mortgage industry is Mortgage Hub Inc., a
US-based pioneer of web-based IT solutions and services that was acquired in
Aug’ 2006. The company offers software solutions, consulting services, contract
resources and business process outsourcing services for the wholesale,
correspondent, retail, construction, and consumer direct channels. Mortgage Hub
was established in 1999, and boasts a client base that includes many of the
nation’s top lenders.
ISGN has further expanded its offerings by acquiring the mortgage software
division of Fair Isaac Corporation (NYSE: FIC), a leading U.S.-based
enterprise-decision management solutions provider for global businesses. (March
2007) Along with the additional solutions and services acquired in the deal
ISGN has significantly expanded its U.S. operations by adding vertical industry
and technology professionals, an additional operation center, 150 customers and
more than 700 vendor partners. ISGN has also acquired Dynatek, a U.S.-based
provider of mortgage automation software for retail and wholesale lenders. With
this acquisition, ISGN now serves more than 400 lender clients, achieving
considerable penetration into the industry’s mid- market, and has added another
significant asset in-line with its overall strategy of becoming the industry’s
technology and service leader.
With a unique strategy in a niche space, ISGN combines the synergy of Capital,
Customer base and the Capabilities of an all star team with domain expertise
and working relationships spanning several decades.
ISGN is investing in developing the industry’s most comprehensive platform of
integrated products and services that will re-map how lenders market,
originate, service, and manage mortgages in the U.S. ISGN is positioned to
transform the mortgage industry through technology and business processes.
ISGN proclaimed an audacious vision in June 2005 when it said: “Our vision is
to build a global portfolio of knowledge driven, IT and ITES (IT Enabled
Services) businesses that create sustainable value to all stakeholders:
Customers, Investors and Employees. We will accomplish this by creating
businesses, primarily based out of India where we will be Top3 in 3 years. ‘
ISGN has established itself in just over one year of this to create sustainable
and tangible value to its investors and intrinsic value to its growing employee
numbers and widening customer base
Indo Maroc Phosphore SA
Indo Maroc Phosphore SA (IMACID), Chambal's world-class joint venture
phosphoric acid plant in Morocco, successfully commenced commercial production
in November 1999. The US$ 204 million joint venture project, in equal
participation with Office Cherifien Des Phosphates (OCP) of Morocco, produces
3,30,000 tonnes per annum of merchant grade phosphoric acid (54% of P2O5). OCP
is the largest producer of phosphoric acid in the world. Phosphoric acid is a
major raw material for production of DAP and other complex fertiliser grades.
Zuari Industries Limited buys its entire phosphoric acid requirements from
IMACID. This arrangement ensures an uninterrupted supply of phosphoric acid to
the Company to produce DAP and also helps bridge the gap between demand and
supply of phosphoric acid, since India imports over 80% of its phosphoric acid
requirement.
Press releases :-
India Steamship to be merged with Chambal Fert
Santanu Sanyal
For every 20 equity shares held in ISS, as on reference date
to be determined by CFCL, 11 equity shares of CFCL of face value of Rs 10 each
shall be issued.
Kolkata , Sept. 16
INDIA Steamship Company (ISS) will cease to have a separate identity.
The 76-year-old shipping company belonging to the K.K. Birla Group is being
merged with Chambal Fertiliser and Chemicals Ltd (CFCL), also in the same
group. This was decided at the ISS board meeting held in Delhi on Thursday. In
all probability, ISS will survive as a shipping division of CFCL.
The ISS board resolved that the company, subject to the consent of
shareholders and creditors, will undertake a scheme of arrangement and
amalgamation among CFCL, the company, their respective shareholders and
creditors in accordance with Section 391-394 of the Companies Act, 1956.
As per the scheme, for every 20 equity shares held in ISS, as on
reference date to be determined by CFCL, 11 equity shares of CFCL of face value
of Rs 10 each shall be issued. The appointed date under the scheme is September
1, 2004. With effect from the appointed date, the company shall be amalgamated
with CFCL. Pursuant to such amalgamation, the company shall stand dissolved
without being wound-up.
Company sources, however, feel that it will be several months before the
actual merger will come into force. This is because there are so many
formalities to be complied with such as approval of the High Court, consent of
the shareholders and the approval of the Registrar of Companies.
The holders of 25,000 five per cent tax-free cumulative preference
shares of the face value of Rs 100 each, being preference shareholders of ISS,
shall be issued, in accordance with the scheme for each 5 per cent preference
share, 10 preference shares by CFCL of the face value of Rs 10 each credited as
fully paid-up on the same terms and conditions.
It might be recalled that Ratnakar Shipping, another K.K. Birla shipping
company, was merged into ISS in 1990.
ISS has an equity capital of Rs 475.300 millions subscribed in the
following proportions: the promoters group 78.77 per cent, financial
institutions and mutual funds 0.96 per cent, non-resident Indians and foreign
nationals 0.08 per cent and Indian public 20.19 per cent.
Right now, ISS fleet totalling 246,773 dwt, consists of three ships, all
crude carriers. These are "Ratna Abha", a 60,725-dwt Panamax tanker,
"Ratna Shalini", 89,960 dwt Aframax tanker, and "Ratna
Urvi", a 96,088 dwt Aframax tanker.
The company has a total of 68 shore-based staff — 13 officers, 23 staff
and 22 sub-staff. The number of shipboard officers on roll is 44. Also, there
are 297 ratings in company's roster in Kolkata.
In 2003-04, ISS posted a profit before tax of Rs 154.500 millions,
against Rs 2.304 millions in 2002-03, operating profit of Rs 278.600 millions
(Rs 43.700 millions) and profit after tax of Rs 96.800 millions (Rs 11.800
millions). The accumulated loss amounted to more than Rs 180.000 millions.
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 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.39.27 |
|
UK Pound |
1 |
Rs.77.33 |
|
Euro |
1 |
Rs.57.51 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--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 |
|
45 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
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 |
|