MIRA
INFORM REPORT
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Report Date : |
28.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
HALDIA PETROCHEMICALS LIMITED |
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Registered Office : |
1 Auckland Place Kolkata – 700017, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
16.09.1985 |
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Com. Reg. No.: |
39487 |
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CIN No.: [Company
Identification No.] |
U99999WB1985SGC039487 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALH00472D |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturing of High
Density Polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE), etc. |
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 130000000 |
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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 : |
Though the company was incorporated in the year 1985, commercial activities started during the year 1998-99 only. The company had incurred some losses during the first year of its production. The management of the company consists of highly qualified and respectable personnel. Their trade relations are fair. Payments are usually correct and as per commitments. In view of strong promoters, the company can be considered normal for business dealings at usual trade terms and conditions. The company can be regarded as a promising business partner in a long-run. Efforts are continued for latest Annual Reports and if available we shall scan and lend it to you. |
INFORMATION
DECLINED BY
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Name : |
Mr. Alok Chattopadhyay |
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Designation : |
Financial |
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Date : |
25.07.2008 |
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Name : |
Mr. Narinder Singh |
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Designation : |
Financial |
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Date : |
25.07.2008 |
LOCATIONS
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Registered Office/ Eastern Regional
Office: |
1 Auckland Place Kolkata – 700017, West Bengal, India |
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Tel. No.: |
91-33-22831640 / 43/ 45 / 471024 |
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Fax No.: |
91-33-22831654/ 22831649/ 2471361 |
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E-Mail : |
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Websites: |
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Corporate Office : |
31, Netaji Subhash Road, Kolkata - 700017, West Bengal, India |
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Tel. No.: |
91-33-2247 1024 / 1167 / 1294 |
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Fax No.: |
91-33-2247 1361 / 1102 |
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E-Mail : |
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Website : |
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Area: |
10000 Sq. ft |
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Location: |
Rented |
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Factory 1 : |
Haldia, District 24 Parganas, West Bengal, India. |
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Location: |
Owned |
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Factory 2 : |
Post Box 12, P.O Durgachak, District Purba Mednipur – 721602, West Bengal |
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Tel. No.: |
91-3224-274007 / 877/876/882/384 |
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Fax No.: |
91-3224-274420 |
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E-Mail : |
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Research Developments Center : |
54 / A/1 Block – DN, sector 5, Salt Lake, Kolkata – 700091, wets
Bengal, India |
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Tel. No.: |
91-33-23673491 /3492/3061 / 3062 / 3495 / 91-3224-274007 /
877/876/882/384 |
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Fax No.: |
91-33-23679890 / 2247 1361/1102 |
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E-Mail : |
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Southern
Regional Office: |
2A Royal Court , 41 Venkata Narayana Road, T Nagar, Chennai – 600 017,
India |
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Tel. No.: |
91-44-24341003 / 9929 / 8592 |
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Fax No.: |
91-44-2434 1401 |
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E-Mail : |
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Northern
Regional Office: |
903, Ansal Bhawan, 16 Kasturba Gandhi Marg, New Delhi – 110 001 |
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Tel. No.: |
91-11-23315606 / 5626 / 2372
1348 / 3176 |
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Fax No.: |
91-11-2372 3327 |
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E-Mail : |
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Western Regional Office |
106-108 Kesava Building, Bandra – Kurla complex, Bandra (East), Mumbai
– 400 051 |
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Tel. No.: |
91-22-26590653 / 113/ 219 /318 |
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Fax No.: |
91-22-2659 0114 |
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E-Mail : |
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Area Sales
Office: |
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Indore office: 18, Old Palasia 102C, Kanchan Sagar, A.B. Road, Indore – 452001 Tel No: 91-731-2547452
/ 5066979 Fax No:91-731-5066979 Email: asoindo@hpl.co.in Hyderabad Office: Mega Sri Classics, 301, 4th Floor, Model House Lane,
Dwarkapuri Colony, Punjagutta, Hyderabad – 500 Tel no: 91-40-55633072 Fax No: 91-40-23358302 Email: asohyd@hpl.co.in Kanpur Office: 6, Prabhu Sadbhavana, 9/56 Arya Nagar, Kanpur – 208002 Tel no: 91-512-255 6863 Fax no: 91-512 -2555089 Email: asokan@hpl.co.in Jaipur
Office: 225, City Centre, S.C. Road, Jaipur – 302001 Tel no: 91-141-237 6910 Fax No: 91-141-2367910 Email: asojai@hpl.co.in Ludhiana Office: Flat - B, 5th Floor, Noble Enclave, Bhaiwala Chawk, Ferozepur Road,
Ludhiana – 141001 Tel no: 91-161- 403853 / 315136 Fax no: 91-161- 403853 Email:asoludh@hpl.co.in Ahmedabad Office: B - 504, Suhavan Apartments,
Opp. Judges Bunglow Road, Near Rudra Square, Vastrapur, Bodak-Deb,
Ahmedabad – 380015 Tel no: 91-79-6870594 / 6871508 Durgapur Office: C/O. Adda Office, City Centre, 1st Floor, Durgapur – 713216 Tel No:91-343-546815/6716, Extn. 232 |
DIRECTORS
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Name : |
Mr. S K Bhowmik |
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Designation : |
Managing Director |
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Name : |
Mr. Swapan Kr. Bhowmik |
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Designation : |
Managing director |
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Name : |
Mr. Tarun Das |
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Designation : |
Chairman |
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Name : |
Mr. S Bhattacharya |
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Designation : |
Director |
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Name : |
Mr. Naresh Chandra |
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Designation : |
Director |
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Name : |
Mr. S Chatterjee |
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Designation : |
Director |
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Name : |
Mr. Samar Ghosh |
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Designation : |
Director |
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Name : |
Mr. G Goswani |
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Designation : |
Director |
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Name : |
Mr. S Mohan Gurunath |
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Designation : |
Director |
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Name : |
Mr. H K Khan |
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Designation : |
Director |
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Name : |
Mr. Gopal Krishna |
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Designation : |
Director |
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Name : |
Mr. V R Mehta |
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Designation : |
Director |
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Name : |
Mr. H K Sethna |
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Designation : |
Director |
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Name : |
Mr. R G Sharma |
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Designation : |
Director |
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Name : |
Mr. Jawahar Sircar |
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Designation : |
Director |
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Name : |
Mr. R Vasudevan |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Ashutosh Bose |
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Designation : |
Vice President & CS |
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Name : |
Mr. Subir R Ghosh |
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Designation : |
Senior General Manager – F and A |
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Name : |
Mr. Anjan Bose |
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Designation : |
CIO , Head – HR and VP |
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Name : |
Mr. Aloke Kr Chattopadhyay |
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Designation : |
Head – Legal, Dy. Co. Secy. and VP |
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Name : |
Mr. Ujjal De |
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Designation : |
Head - Marketing (Polymers) and VP |
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Name : |
Mr. Ashok Kr. Ghosh |
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Designation : |
Head – Manufacturing , Deputy Head – Plant and VP |
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Name : |
Mr. Gaur Hari Guchhait |
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Designation : |
Head – Projects -Planning and VP |
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Name : |
Mr. Rabin Mukhopadhyay |
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Designation : |
Head – Procurement, Marketing (Chemicals ) VP |
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Name : |
Mr. P Chatterjee |
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Designation : |
Deputy Chairman |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of High Density Polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE), etc. |
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Products : |
Polyolefin |
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Import: |
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Products: |
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Countries: |
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Export: |
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Products: |
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Countries: |
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Terms : |
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Purchasing : |
L/C and credit terms. |
GENERAL
INFORMATION
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No. of Employees : |
300 |
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Bankers : |
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Facilities : |
O] The original insurance company limited of its terms Loans of Rs.57.300 Millions P] United India insurance company limited of its terms Loans of Rs.98.200 Millions Q] IFCI Limited of its terms Loans of Rs.125.200 Millions R] IDBI of its terms Loans of Rs.271.300 Millions S] ICICI Bank Limited of its terms Loans of Rs.140.100 Millions T] Indian Overseas Bank of its terms Loans of Rs.559.600 Millions Note: Security on movables has since been created by way of execution of deed of hypothecation. Creation of security on immovable by way of mortgage is under process. On First Charge
Basis – ECB Facilities The ECB Facilities of the company have been refinanced by way of availment of the following ECB facilities:
On First Charge
Basis – LC Facilities
On Second Charge
Basis – Revised Working Capital Facilities A] State Bank of India of its Working Capital facilities Rs.7860.000 Millions B] Central Bank of India of its Working Capital facilities Rs.350.000 Millions C] Punjab National Bank of its Working Capital facilities Rs.1570.000 Millions D] Allahabad Bank of its Working Capital facilities Rs.2500.000 Millions E] Union Bank of India of its Working Capital facilities Rs.1300.000 Millions F] United Bank of India of its Working Capital facilities Rs.750.000 Millions G] State Bank of Hyderabad of its Working Capital facilities Rs.1150.000+ Millions H] UCO Bank of its Working Capital facilities Rs.250.000 Millions I] Indian Overseas Bank of its Working Capital facilities Rs.781400.000Millions J] The Karur Vysya Bank of its Working Capital facilities Rs.1400.000 Millions K] Bank of India of its Working Capital facilities Rs.1620.000Millions L] IDBI of its Working Capital facilities Rs.2250.000 Millions M] ICICI Bank Limited of its Working Capital facilities Rs.1880.000 Millions N] Standard Chartered Bank of its Working Capital facilities Rs.1000.000 Millions. |
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Banking Relations : |
Satisfactory |
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Financial Institutions : |
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Auditors : |
Chartered Accountants
Chartered Accountants
Chartered Accountant |
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Membership : |
Confederation of Indian Industry |
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Joint venture: |
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Collaboration: |
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Other Company: |
Merlin Resources Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2200000000 |
Equity Shares |
Rs.10/- each |
Rs.22000.000millions |
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300000000 |
Preference Shares |
Rs.10/- each |
Rs.3000.000 millions |
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Total |
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Rs.25000.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1559915828 |
Equity Shares |
Rs.10/- each |
Rs.15599.160 millions |
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271081818 |
Preference Shares |
Rs.10/- each |
Rs.2710.820 millions |
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Total |
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Rs.18309.980 Millions |
Note:
The above shares are redeemable on 24th
February, 2012, which at the company’s option can be extended for 2 additional 5
year term with coupon rate 1% or Equity Dividend whichever is higher.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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18309.980 |
18309.980 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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7344.230 |
1531.330 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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25654.210 |
19841.310 |
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LOAN FUNDS |
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1] Secured Loans |
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26441.360 |
30106.100 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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26441.360 |
30106.100 |
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DEFERRED TAX LIABILITIES |
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3215.460 |
728.000 |
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TOTAL |
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55311.030 |
50675.410 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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41484.260 |
44288.860 |
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Capital work-in-progress |
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2964.190 |
661.010 |
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INVESTMENT |
|
775.310 |
775.310 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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7091.540 |
8098.450 |
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Sundry Debtors |
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2641.470 |
1878.340 |
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Cash & Bank Balances |
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4267.680 |
467.300 |
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Other Current Assets |
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163.870
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1453.790
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Loans & Advances |
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4618.440 |
3122.280 |
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Total
Current Assets |
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18783.000 |
15020.160 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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7480.840 |
9542.200 |
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Provisions |
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1214.890 |
581.280 |
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Total
Current Liabilities |
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8695.730 |
10123.480 |
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Net Current Assets |
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10087.270 |
4896.680 |
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MISCELLANEOUS EXPENSES |
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0.000 |
53.550 |
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TOTAL |
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55311.030 |
50675.410 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
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70873.700 |
57518.700 |
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Other Income |
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1745.940 |
4241.200 |
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Total Income |
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72619.640 |
61759.900 |
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Profit/(Loss) Before Tax |
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8311.960 |
4879.730 |
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Provision for Taxation |
|
2499.080 |
1876.370 |
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Profit/(Loss) After Tax |
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5812.880 |
3003.360 |
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Earnings in Foreign Currency : |
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Export Earnings |
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16565.120 |
14422.210 |
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Other Earnings |
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0.200 |
0.100 |
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Total Earnings |
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16565.320 |
14422.310 |
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Imports : |
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Raw Materials |
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36357.010 |
31349.660 |
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Stores & Spares |
|
1301.840 |
552.580 |
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Total Import |
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37658.850 |
31902.240 |
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Expenditures : |
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Raw Materials |
|
46398.240 |
40138.300 |
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Other Manufacturing Expenses |
|
11624.430 |
10618.310 |
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Increase/(Decrease) in Finished Goods |
|
383.650 |
(375.160) |
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Miscellaneous Expenses |
|
53.550 |
160.670 |
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Interest and Financial Expenses |
|
2820.090 |
3304.560 |
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Depreciation |
|
3027.720 |
3033.490 |
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Total Expenditure |
|
64307.680 |
56880.170 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
|
1.24 |
1.52 |
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Long Term Debt
Equity Ratio |
|
1.09 |
1.43 |
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Current Ratio |
|
1.09 |
1.12 |
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TURNOVER RATIOS |
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Fixed Assets |
|
1.40 |
1.13 |
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Inventory |
|
10.80 |
8.20 |
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Debtors |
|
36.28 |
35.35 |
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Interest Cover
Ratio |
|
3.95 |
2.48 |
|
Operating Profit
Margin (%) |
|
17.27 |
16.89 |
|
Profit Before
Interest and Tax Margin (%) |
|
13.58 |
12.32 |
|
Cash Profit
Margin (%) |
|
10.78 |
9.09 |
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Adjusted Net
Profit Margin (%) |
|
7.09 |
4.52 |
|
Return on Capital
Employed (%) |
|
21.83 |
16.40 |
|
Return on Net
Worth (%) |
|
29.01 |
17.53 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
- Land
(Leasehold)
- Building
- Plant and
Machinery
- Electrical
Equipment
- Furniture, Fixture
and Office Equipment
- Vehicles
- Intangibles
WEBSITE DETAILS:
Subject is modern naphtha based Petrochemical Complex located 125 kms from Kolkata, at Haldia, West Bengal, India.
It is jointly promoted by West Bengal Industrial Development
Corporation, The Chatterjee Petrochem (Mauritius) Company Limited and the Tata
Group with an investment of $1.2 Billion.
The complex consists of a naphtha cracker unit and
associated plants which manufacture:
·
Linear Low Density Polyethylene
(LLDPE)
·
High Density
Polyethylene (HDPE)
·
Polypropylene
(PP)
·
Chemicals
Infrastructure:
HALDIA PORT
The Haldia Port is located at 56 nautical miles downstream and south of Kolkata. It has a comprehensive cargo handling facility.
HDC also has full fledged container handling facility and a jetty for handling bulk chemicals.
Haldia Dock Complex (HDC) ranks 5th among all major ports in India and is well connected through the National Highways (NH 41 and NH 6) and the railways.
HPL’s bulk chemicals such as benzene, butadiene and Pygas are exported through
Haldia Port.
Subject is the largest industrial venture in eastern India, representing an
investment of over US$ 1.2 billion. It is a unique three-way public private
partnership of the Government of West Bengal, Chatterjee Soros Fund Management
and the Tata Group. Subject has set up an integrated naphtha based
petrochemicals complex and associated plants, which manufacture Linear Low
Density Polyethylene (LLDPE), High Density Polyethylene (HDPE), Polypropylene (PP)
and chemicals. It uses foreign technology collaborations from Europe and has an
annual production capacity of 1.7 million tonnes.
PRESS CLIPPINGS:-
AHMEDABAD: The West Bengal
government is understood to have initiated informal talks with the Mukesh Ambani-controlled
Reliance group for selling its stake in the Haldia Petrochemicals.
According to market sources, the government, which is in conflicts with its JV
partner, the Chatterjee Group, over shareholding pattern has started looking at
other big petrochemicals companies, including Reliance group companies.
Sources said Reliance is toying over the idea of acquiring West Bengal
government stake in HPL through IPCL, considering the synergy between the two
companies. When contacted by TOI, an IPCL spokesperson declined to comment.
The allotment of 7.5% equity to IOC has become a bone of contention between the
West Bengal government and Chatterjee group, as the latter is opposing the
move. Following this proposal, Chatterjee group had approached the Company Law
Board on the issue of allotment of shares worth Rs 1500.000 millions IOC.
If the allotment takes place, the Chatterjee group is likely to become minority
share-holders. It is reliably learnt that the West Bengal government has also
opposed the formula suggested by CLB, allowing the Chatterjee group to remain
majority stake holders.
Sources said, for a permanent solution, the West Bengal government may offer a
price at which it wants to sell its holding to Chatterjee group, which has the
first right of refusal. "In case, the price is not favourable to the
group, The government is expected make a counter offer to buy Chatterjee
group's holding in HPL and then it may sell to other interested parties,"
sources said.
According to sources, in HPL, West Bengal government holds 47.88% share through
its West Bengal Industrial Corporation and the Chatterjee group holds 48.94%
stake. The government wants to exit from HPL as the project has not taken off
as per expectations.
KOLKATA: The shareholding
tussle over Haldia Petrochemcials has just got murkier. The company's single
largest stakeholder, Purnendu Chatterjee, has ruled out any out-of-court
settlement with the West Bengal government on the lingering dispute.
The Chatterjee Group (TCG) chairman has also rejected the possibility of any
meeting with CM Buddhadeb Bhattacharjee to arrive at a solution to the vexed
problem. "The case is sub judice.
Let the Company Law Board now decide the fate of the HPL dispute,"
Chatterjee said. "I am in no way responsible for whatever has happened
with regard to Haldia Petrochemicals, and have no desire at all to meet the
CM," he said.
The principal secretary to the CM, Dipankar Mukherjee, said Chatterjee's
decision was entirely his own. "They can't speak on his behalf. However,
they don't think that their relations have soured," Mukherjee pointed out.
The CLB has already completed its hearings on the HPL issue and an order is
expected soon. In the past, CLB chairman S Balasubramanian had urged the CM to play
a lead role in reaching an amicable settlement with Chatterjee. However, the CM
had told Times of India earlier that he did not wish to meet the TCG chairman.
Chatterjee's spat with the state government arose over the handing over of a
7.5% equity stake in HPL to Indian Oil Corporation, which he felt would reduce
him to a minority holding in Haldia Petrochem.
He alleged that he was never kept in the loop about the IOC development, a
charge denied by the Bhattacharjee government. Chatterjee has even demanded the
resignation of HPL chairman Tarun Das for not keeping him abreast about the
deal with IOC.
KOLKATA: The Bengal
government said it was open to an out-of-court settlement with Purnendu
Chatterjee in the larger interests of Haldia Petrochemicals Limited (HPL), but
added that The Chatterjee Group (TCG) would first have to make a formal
approach.
"They have always suggested such a way out (out-of-court settlement). It
is now up to them to decide what to do," state commerce and industries
minister Nirupam Sen told TOI, while pointing out that the state was still
weighing options to contest the Company Law Board (CLB) verdict on HPL in high
court. The minister also said the state has not received any communication from
TCG following the CLB verdict that it was willing to talk with the government.
Last week, a TCG spokesman said the group was keen to work amicably with the
state.
While contacted for a response to Sen's latest comments, the TCG spokesman
declined to comment on whether a formal approach has been made
KOLKATA: The Bengal
government has filed an appeal in the Calcutta High Court seeking a stay on the
Company Law Board's order on Haldia Petrochemicals. This was disclosed by state
commerce and industries minister Nirupam Sen,who didnot say when the case is
likely to come up for hearing in the court.
Sources close to Chatterjee said the group would take steps to ensure that its
interests were protected. However, they reiterated that TCG was still willing
to work in coordination with government, as was indicated by Chatterjee in his
recent letter to CM Buddhadeb Bhattacharjee.
Sen's immediate reaction to CLB verdict, which was delivered on January 31, was
that it was "not acceptable". However, later, he said CLB order had
not gone completely against the state. He had said that the state was ready to
talk to Chatterjee to ensure that the spat between shareholders did not harm
HPL's interests.
The state government had been weighing the option of moving court ever since
the CLB directed the state to exit from HPL by selling its stake in the company
to The Chatterjee Group (TCG). CLB chairman S Balasubramanian had said that the
government/West Bengal Industrial Development Corporation should disinvest 520
million shares in favour of TCG.
The CLB had directed both the state and TCG to appear before it on
February 20 to suggest a mutually-acceptable valuer for the 520 million HPL
shares. The CLB had said the price payable for the 520 million shares should be
the fair price determined by the valuer appointed by it, or Rs 28.80, whichever
was higher. Sources said it was still unclear whether the state would be
present at CLB forum on February 20 to suggest a valuer in the backdrop of its
decision to move the court.
KOLKATA: The Calcutta High
Court, in an interim order on Friday, stayed the transfer of all shares of
Haldia Petrochemicals Limited (HPL).
Justice Jayanta Biswas was hearing a petition filed by the West Bengal
government and West Bengal Industrial Development Corporation (WBIDC) against a
January 31 order of the Company Law Board (CLB).
The high court stay will be effective till further orders or till the matter is
finally disposed of. The next date of hearing has been fixed on February 28.
On January 31, the CLB had confirmed the transfer of 155 million shares by
WBIDC at Rs 10 per share to Chatterjee Petrochem (Mauritius) Company, Winstar
India Investment Company Limited, India Trade (Mauritius) Limited and
Chatterjee Petrochem (India) Private Limited.
CLB had also directed WBIDC and the West Bengal government to transfer 520
million shares held by them to these four companies.
These orders were challenged by the state government and WBIDC before the high
court. On Friday, the court started hearing the issue of transfer of 155
million shares by WBIDC. The matter concerning transfer of the 520 million
shares will come up for hearing later.
The CLB had directed both the state and The Chatterjee Group (TCG) to appear
before it on February 20 to suggest a mutually-acceptable valuer for the 520
million HPL shares.
The CLB had said that the price payable for the 520 million shares should be
the fair price determined by the valuer appointed by it, or Rs 28.80, whichever
was higher.
The CLB had said the consideration for 520 million shares should be paid within
45 days of the date of valuation report, or 60 days if the state did not feel
the need for valuation.
CLB chairman S Balasubramanian had instructed TCG to prepare an
irrevocable bank guarantee of Rs 500.000 millions in favour of WBIDC and a
comfort letter of Rs 15000.000 millions with the state government.
Balasubramanian had said that if TCG failed to pay the amount for 520 million
shares, the state government could forfeit the bank guarantee of Rs 500.000
millions and encash it. The government would purchase the shares at Rs 28.80 or
as fixed by the valuer.
KOLKATA: The Chatterjee
Group (TCG) has questioned the locus standi of the West Bengal government, in the
matter concerning the transfer of shares of Haldia Petrochemicals Limited (HPL)
to Indian Oil Corporation Limited (IOC), before the Calcutta High Court.
TCG also filed four cross appeals against the Company Law Board (CLB) order of
January 31, upholding the allotment of 150 million shares to IOC.
"The CLB order will not affect the state government in any way as the
latter has no stake in HPL," advocate Sudipto Sarkar submitted on behalf
of TCG.
In its January 31 order, CLB had also confirmed the transfer of 155 million
shares by the West Bengal Industrial Development Corporation (WBIDC) at Rs 10
per share to Chatterjee Petrochem (Mauritius) Co, Winstar India Investment Co
Limited, India Trade (Mauritius) Limited and Chatterjee Petrochem (India) Private
Limited.
CLB had also directed WBIDC and the state government to transfer 520 million
shares held by them to the four companies. These orders were challenged by the
state government and WBIDC before the high court.
On February 16, Justice Jayanta Biswas admitted the appeals and in an interim
order, stayed transfer of all shares of HPL.
The court then fixed February 28 as hearing date of appeal against transfer of
the 155 million shares by WBIDC. The matter concerning transfer of the 520
million shares will come up later.
After TCG submitted that it had filed four cross appeals, advocate P C Sen for
the government sought adjournment.
KOLKATA: Haldia
Petrochemicals Limited (HPL) is likely to invest Rs 30000.000 millions over a
period of more than three years for getting into new product category.
A majority of the fund will come from the internal cash flow of the outfit. HPL
chairman Tarun Das said this after the company board meeting.
Das said the company will maintain the performance even in the current
financial year. "The bad days are over. Now it is a gold mine,"he
added. Das informed that there will be a shutdown at the plant for two months
in early 2008.
KOLKATA: The Bengal
government can continue to have a say in the running of Haldia Petrochemicals
Limited (HPL).
On Friday, the Calcutta High Court set aside the January 31 order of the
Company Law Board (CLB) which had asked the state government to exit HPL by
selling its stake in the company to The Chatterjee Group (TCG).
However, Justice Jayanta Biswas, while passing his order, upheld the CLB's
order pertaining to the allotment of HPL shares to Indian Oil Corporation
(IOC).
The CLB too had upheld the allotment to IOC.
Justice Biswas also refused a prayer by TCG's lawyers to stay operation of his
order for two weeks to allow the Purnendu Chatterjee-led group to appeal
against it before a higher bench. An appeal against Justice Biswas' order can
now be made only in the Supreme Court. "They have no comments to make at
this stage as they are awaiting a copy of the order," a TCG spokesman
said, when asked for his reaction to the High Court order.
State commerce and industries minister Nirupam Sen said: "It is a happy
occasion for us. They have won and are free now." Chief minister Buddhadeb
Bhattacharjee said he had heard about the order but did not have the details.
The legal spat between TCG and the state government arose over the transfer of
10% of HPL's equity to IOC for Rs 1500.000 millions, with TCG approaching the
CLB for justice in August 2005.
Indrani Dutta
KOLKATA, Jan. 2
HALDIA Petrochemicals Limited (HPL) may assign (legal transfer of a right) to some banks the agreement that it had signed with Gas Authority of India Limited (GAIL) on December 31, 2002, to raise upfront some funds for the cash-strapped company. With these agreements in place, company officials felt upbeat about further participation by the gas major in the finances of SUBJECT.
"The inking of these documents is a significant first step in forging a strong alliance between these two large organisations,'' sources said. Available information suggests that HPL expected to raise at least Rs 3000.000 Millions by securitising the commercial agreements sealed with GAIL.
Several banks are expected to be involved in this process, sources said, adding that the memorandum of understanding on a proposed strategic alliance between the two corporates went "well beyond commercial arrangements paving the way for GAIL's participation in SUBJECT's equity".
While a press release issued by SUBJECT on the agreements said that GAIL has already communicated "an expression of interest'' on the equity issue sometime ago, sources said that various routes were being explored for pumping in around Rs 2000.000 Millions . They however refused to divulge details in this regard.
It may be mentioned here that in the `comfort letter' given by SUBJECT's lead lender - IDBI - in September 2002 on the proposed financial recast, the beleaguered petrochemical company was told to `arrange' at least Rs 5000.000 Millions of funds by November 30, 2002. Sources felt that by concluding the commercial arrangements (which were hanging fire for quite sometime), SUBJECT has been able to make some progress.
Sources said that SUBJECT, which had missed quite a few of its debt servicing schedules since the beginning of 2002, paid IDBI Rs 170.000 Millions in December. This was done on the strength of SUBJECT's December performance.
"SUBJECT has had the highest-ever earnings before depreciation, interest and taxation (EBDIT) during this month,'' Mr A. Bose, the company secretary said.
A company release said that SUBJECT has clocked 102 per cent capacity utilisation with the highest ever polymer production of 62,000 tonnes. Turnover stood at Rs 3100.000 Millions in December with EBDIT standing at about Rs 420.000 Millions.
"With the expected upturn in world petrochem business, SUBJECT was hopeful of emerging as a large and profitable petrochemical company in the not too distant a future,'' the release said.
Ratan
Tata steps down from Haldia board Corporate Bureau
17 September 2002
Kolkata: Tata Sons chairman Ratan Tata and
Shyamal Gupta, the other Tata group representative on the board of Haldia
Petrochemicals Limited (HPL), have stepped down from the HPL board.
Confirming this during a brief interaction with the
media at the state secretariat here, Tata said this was done recently. Tata and
Gupta of Tata International were the two group representatives on the HPL board
— a company in which the Tatas have a 14-per cent holding.
The Tata group chief, who along with HPL chairman
Tarun Das, had an hour-long session with West Bengal Chief Minister Buddhadeb
Bhattacharjee, said HPL was not discussed during the interaction.
Tata, who was here to attend the AGM of Tata Tea,
said it was decided that HPL will pay back to Tata Tea the Rs 120.000 Millions
that it had taken as an advance after Tata Tea withdrew from SUBJECT nearly
seven years back. The loan, which has remained unserviced till now, figured at
nearly every AGM of TTL with shareholders demanding to know as to what their
company was doing to get back the money.
Tata said it has now been decided that the Tatas will
get back Rs 10.000 Millions every quarter. “The payment has already started.”
Although these events were being seen as the first
concrete steps in the exit of the Tatas from SUBJECT, Bhattacharjee was
unwilling to discuss the issue, although he admitted that the pricing of the
share that the Tatas would sell to the West Bengal Industrial Development
Corporation (WBIDC) is one of the major issues.
SUBJECT is a three-way joint venture between Purnendu
Chatterjee of Chatterjee
Petrochem (Mauritius), WBIDC and the Tatas, with WBIDC and the Chatterjee group
being equal partners in the company and the Tatas holding a minority share.
Outstanding
issues elude Haldia Petro board meet
Tuesday, 20
December, 2005, 18:11
Kolkata: The board of Haldia Petrochemicals Limited
(HPL), which met in the capital today, dodged the outstanding issues
responsible for the straining of relations between the two principal promoters
- The Chatterjee Group and the West Bengal government.
"It was a normal and routine board
meeting," Industry Secretary of West Bengal government, Sabyasachi Sen
said when asked whether issues such as Company Law Board (CLB) and buying back
of West Bengal Industrial Development Corporation shares by TCG cropped up at
the board meet.
The HPL board, which met for the first time since the
tussle between the two came out in the open, discussed issues related to the
company's performance, he said. Purnendu Chatterjee of TCG too said that it was
a ''normal board meeting''.
Asked whether the issue of buying out state
government's shares in HPL by TCG was discussed, he said, "It was within
the ambit of discussion in the meet."
Haldia Petro
board skirts irritants
Calcutta, Dec. 20 (PTI): The board of Haldia Petrochemicals
Limited (SUBJECT) met in New Delhi today, but didn’t touch upon the critical
issues that strained the relations between the two principal promoters — The
Chatterjee Group and the Bengal government.
“It was a normal and routine board meeting,” said
Bengal industry secretary Sabyasachi Sen when asked whether issues such as the
case pending before the company law board (CLB) and buying back of the West
Bengal Industrial Development Corporation’s shares by TCG were discussed at the
meeting.
The HPL board, which met for the first time since the
tussle between the two promoters came out in the open, discussed issues related
to the company’s performance, Sen said.
Purnendu Chatterjee of TCG also said it was a “normal
board meeting”.
Asked whether the issue of buying out the state
government’s shares in HPL by TCG was discussed, he said, “It was within the
ambit of discussion in the meet.”
The board meet assumes significance in view of the
CLB hearing, which is slated for January 12 and 13.
Chatterjee, who had moved the CLB seeking a stay on
the allotment of fresh shares to Indian Oil Corporation (IOC) by the Bengal
government, is keen on an amicable settlement and also ready to withdraw the
case pending before the quasi-judicial body.
He had also been asked by the state government to
submit a written proposal outlining his intention to withdraw the CLB case.
Asked whether Chatterjee had given any such proposal during the meeting, Sen
said it was an inter-promoter issue and was not discussed.
TCG holds nearly 61 per cent of the paid-up equity
capital of the company, the Bengal government about 35 per cent and the balance
is with the Tatas. The company has reported encouraging performances and is
poised to post a record net prof
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 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.42.23 |
|
UK Pound |
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.66.41 |
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 |
NO |
|
--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/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|