1. Summary Information
|
Country |
|
||
|
Company Name |
Chambal
Fertilizers And Chemicals Limited |
Principal Name 1 |
Mr. S.K. Poddar |
|
Status |
Good |
Principal Name 2 |
Mr. Shayam S. Bhartia |
|
Registration # |
17-003293 |
||
|
Street Address |
Gadepan, District |
||
|
Established Date |
07.05.1985 |
SIC Code |
-- |
|
Telephone# |
91-744-6462162
/ 6462167 / 2782915 / 2934 |
Business Style 1 |
Manufacturers |
|
Fax # |
91-744-6465218
/ 7455-274130 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Urea |
|
|
# of employees |
-- |
Product Name 2 |
DAP |
|
Paid up capital |
Rs. 4,162,079,000/- |
Product Name 3 |
100% Polyster Yarn |
|
Shareholders |
Promoter Group -
54.12% Public
shareholding – 45.88% |
Banking |
Bank
of |
|
Public Limited Corp. |
Yes |
Business Period |
25 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A
(58) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries : |
Chambal Infrastructure Ventures Limited |
|
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
10,164,430,000 |
Current Liabilities |
4,011,247,000 |
|
Inventories |
2,433,116,000 |
Long-term Liabilities |
26,159,664,000 |
|
Fixed Assets |
29,278,342,000 |
Other Liabilities |
2,455,002,000 |
|
Deferred Assets |
0 |
Total Liabilities |
32,625,913,000 |
|
Invest& other Assets |
4,650,599,000 |
Retained Earnings |
9,738,495,000 |
|
|
|
Net Worth |
13,900,574,000 |
|
Total Assets |
46,526,487,000 |
Total Liab. & Equity |
46,526,487,000 |
|
Total Assets (Previous Year) |
352,705,924,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
35,745,019,000 |
Net Profit |
2,490,512,000 |
|
Sales(Previous yr) |
45,955,361,000 |
Net Profit(Prev.yr) |
2,305,629,000 |
MIRA INFORM REPORT
|
Report Date : |
16.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered Office : |
Gadepan, District |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
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 : |
A (58) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 55000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having good track records. Trade
relations are fair. Business is active. Payments are reported as regular. Company cab be considered good for normal business under usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
P O Gadepan, District |
|
Tel. No.: |
91-744-6462162 / 6462167 / 2782915 / 2934 |
|
Fax No.: |
91-744-6465218 / 7455-274130 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Administrative Office : |
6th Floor, |
|
Tel. No.: |
91-11-26461162 – 63 |
|
Fax No.: |
91-11-26465218/26480639 |
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
Corporate One, 1st floor, 5, Commercial Centre, Jasola, |
|
Tel. No.: |
91-11-46581300/41697900 |
|
Fax No.: |
91-11-40638679 |
|
|
|
|
Factory 1 : |
|
|
Tel No: |
91-1795-245285-87 |
|
Email: |
|
|
Web Site: |
|
|
|
|
|
Factory 2 : |
Birla Textile
Mills Solaris Building No. 1, D-Wing, 4th Floor, Solaris Complex,
|
|
Tel No: |
91-22-28573706/5204 |
|
|
|
|
Regional Offices
: |
Located at:
|
DIRECTORS
As On 31.03.2010
|
Name : |
Mr. S.K. Poddar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Shayam S. Bhartia |
|
Designation : |
Co-Chairman |
|
|
|
|
Name : |
Mr. H.S. Bawa |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Anil Kapoor |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. R. N. Bansal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dipankar Basu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C.S. Nopany |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A.J.A. Tauro |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Marco P. A. Wadia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. N. Memani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Radha Singh |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. M.S. Rathore |
|
Designation : |
Secretary |
|
|
|
|
Name : |
Mr. Abhay Baijal |
|
Designation : |
Vice President - Finance |
|
|
|
|
Name : |
Mr. D.L. Birla |
|
Designation : |
Executive President – BTM |
|
|
|
|
Name : |
Mr. Alok Doyal |
|
Designation : |
Vice President – Corporate HR |
|
|
|
|
Name : |
Mr. P.K. Gandhi |
|
Designation : |
President – HR |
|
|
|
|
Name : |
Mr. Vinod Mehra |
|
Designation : |
President – Operations |
|
|
|
|
Name : |
Mr. Arun Sharma |
|
Designation : |
Executive President – |
|
|
|
|
Name : |
Mr. V. Vijayshankar |
|
Designation : |
Vice President – Strategic Planning |
|
|
|
|
Name : |
Mr. Abhai Kumar Bhargava |
|
Designation : |
Vice President – Operations |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
22146756 |
5.32 |
|
|
206383758 |
49.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
19953895 |
4.79 |
|
|
2500143 |
0.60 |
|
|
23631415 |
5.68 |
|
|
32536434 |
7.82 |
|
|
|
|
|
|
|
|
|
|
21.165027 |
5.09 |
|
|
|
|
|
|
|
|
|
|
63136074 |
15.17 |
|
|
23468827 |
5.64 |
|
|
|
|
|
|
|
|
|
|
1179196 |
0.28 |
|
|
106327 |
0.03 |
|
|
|
|
|
Total |
416207852 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Ammonia and Urea. |
||||||||||||||||
|
|
|
||||||||||||||||
|
Products : |
|
PRODUCTION STATUS (As
on 31.03.2010)
|
Particulars |
|
Unit |
Licensed
Capacity |
Installed
Capacity |
|
i) Fertiliser |
|
|
|
|
|
Ammonia |
|
MTPD |
2700 |
2700 |
|
Urea |
|
MTPD |
4600 |
4600 |
|
ii) Yarn Spindles |
|
Nos. |
-- |
83376 |
Actual Production:
|
Production |
|
Quantity
( Tons) |
|
Ammonia |
|
1175115.000 |
|
Urea |
|
2030790.000 |
|
Synthetic Yarn |
|
|
|
Man Made Fibre Yarn |
|
11473.146 |
|
Fibre Yarn Waste |
|
600.746 |
|
Cotton Yarn |
|
|
|
Yarn |
|
8949.906 |
|
Fibre Yarn Waste |
|
2204.824 |
GENERAL INFORMATION
|
Suppliers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Bank
of · Punjab National Bank · State
Bank of · Allahabad Bank · State
Bank of · State
Bank of · State
Bank of · State
Bank of · Citibank · HDFC Bank · ICICI Bank · ING Vysya Bank · State
Bank of · Axis Bank Debenture Trustee: Axis Bank
Limited |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Note: 1. 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 fixed assets of the Company, both present and future (save and except assets of shipping division), subject to prior charges created/to be created in favour of banks on current assets and other movables for securing working capital borrowings. These debentures are redeemable in four equal annual installments starting from 31.03.2008. 2. Rupee term loans from banks of Rs.2804.600 Millions and foreign currency term loans of Rs. 3627.677 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 fixed assets of the Company, both present and future (save and except assets of shipping division), subject to prior charges created/to be created in favour of banks on current assets and other movables for securing working capital borrowings. 3. Foreign currency term loan of Rs.1975.600 Millions from a bank is secured by first priority mortgage on the Company’s vessel i.e. Ratna Puja and assignment of earnings, insurance and requisition compensation in respect of such vessel. 4. Foreign currency term loan of Rs.2559.300 Millions from a bank is secured by first priority mortgage on the Company’s vessel i.e. Ratna Shalini and assignment of earnings, insurance and requisition compensation in respect of such vessel and second priority mortgage on the Company’s vessel i.e. Ratna Puja and assignment of earnings, insurance and requisition compensation in respect of such vessel. 5. Foreign currency term loan of Rs.5863.137 Millions from banks is secured by first priority mortgage on the Company’s three vessels i.e. Ratna Shruti, Ratna Shradha and Ratna Namrata and assignment of earnings, insurance and requisition compensation in respect of such vessels. 6. Short Term Loan of Rs.2800.000 Millions from a bank is to be secured by pledge of Government of India Fertiliser Bonds issued to the Company. 7. Cash credit facilities from banks are secured by hypothecation of all the Company’s current assets including all stocks and book debts (including subsidy support) and other movables, 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. 8. Finance lease obligation is secured by assets acquired under the facility. 9. Secured loans (other than cash credit facilities from banks, short term rupee loans and finance lease obligations) include Rs.2498.759 Millions (Previous Year Rs.1748.187 Millions) repayable within one year.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants Singhi and Company Chartered Accountants Crawford Bayley and Company Chartered Accountant |
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
440000000 |
Equity Shares |
Rs.10/- Each |
Rs. 4400.000 Millions |
|
210000000 |
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 |
|
|
|
|
|
Note:
Of the above 10207852 (Previous year 10204852)
equity shares of Rs. 10/- each have been allotted for consideration other than
cash, pursuant to the scheme of amalgamation of erstwhile India Steamship Company
Limited.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4162.079 |
4162.079 |
4162.079 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9738.495 |
8181.451 |
7220.581 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
13900.574 |
12343.530 |
11382.660 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
19960.750 |
20692.690 |
15152.623 |
|
|
2] Unsecured Loans |
6198.914 |
3498.346 |
2806.460 |
|
|
TOTAL BORROWING |
26159.664 |
24191.036 |
17959.083 |
|
|
DEFERRED PAYMENT LIABILITES |
0.000 |
621.165 |
977.225 |
|
|
DEFERRED TAX LIABILITIES |
2455.002 |
2659.944 |
2844.338 |
|
|
|
|
|
|
|
|
TOTAL |
42515.240 |
39815.675 |
33163.306 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
29278.342 |
28647.645 |
16152.264 |
|
|
Capital work-in-progress |
436.757 |
2210.870 |
7095.803 |
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS |
41.746 |
58.785 |
56.079 |
|
|
INVESTMENT |
4172.096 |
6108.935 |
3074.104 |
|
|
DEFERREX TAX ASSETS |
0.0000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2433.116
|
3168.241
|
3025.995 |
|
|
Sundry Debtors |
5584.970
|
6601.031 |
1631.019 |
|
|
Cash & Bank Balances |
299.990
|
1275.201
|
626.708 |
|
|
Other Current Assets |
3425.112
|
3612.251
|
3817.514 |
|
|
Loans & Advances |
854.358
|
1005.707
|
801.294 |
|
Total
Current Assets |
12597.546
|
15662.431
|
9902.530 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1426.696
|
10936.343 |
|
|
|
Other Current Liabilities |
850.165
|
617.644
|
1743.344 |
|
|
Provisions |
1734.386
|
1336.262
|
1387.772 |
|
Total
Current Liabilities |
4011.247
|
12890.249
|
3131.116 |
|
|
Net Current Assets |
8586.299
|
2772.182
|
6771.414 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
17.258 |
13.642 |
|
|
|
|
|
|
|
|
TOTAL |
42515.240 |
339815.675 |
33163.306 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
35745.019 |
45955.361 |
27201.286 |
|
|
|
Other Income |
668.369 |
1194.394 |
821.672 |
|
|
|
TOTAL (A) |
36413.388 |
47149.755 |
28022.958 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of trading goods |
6438.937 |
15641.800 |
2558.490 |
|
|
|
Raw material consumed |
10308.710 |
9420.217 |
7816.963 |
|
|
|
Personnel expenses |
986.071 |
905.996 |
724.589 |
|
|
|
Operating and other expenses |
10533.825 |
13655.468 |
10131.320 |
|
|
|
Increase and Decrease in inventories |
760.533 |
(485.156) |
711.337 |
|
|
|
Freight to charter in ship |
348.361 |
1324.155 |
835.176 |
|
|
|
Deferred revenue expenditure written off |
5.929 |
7.747 |
6.185 |
|
|
|
Exceptional items |
(43.687) |
(96.109) |
(241.738) |
|
|
|
TOTAL (B) |
29338.679 |
40374.118 |
22542.322 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
7074.709 |
6775.637 |
5480.636 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
910.414 |
1323.242 |
950.471 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
6164.295 |
5452.395 |
4530.165 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2576.177 |
2271.393 |
1849.369 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3588.118 |
3181.002 |
2680.796 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
1097.606 |
875.373 |
642.790 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
2490.512 |
2305.629 |
2038.006 |
|
|
|
|
|
|
|
|
|
|
TRANSFERRED FROM
DEBENTURE REDEMPTION RESERVE |
31.250 |
31.250 |
398.250 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6284.332 |
5168.949 |
4019.189 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
250.000 |
250.000 |
250.000 |
|
|
|
Transfer to Tonnage Tax Reserve |
37.500 |
95.000 |
160.000 |
|
|
|
Proposed Dividend on Equity Shares |
790.795 |
749.174 |
749.174 |
|
|
|
Tax on Dividend |
131.344 |
127.322 |
127.322 |
|
|
BALANCE CARRIED
TO THE B/S |
7596.455 |
6284.332 |
5168.949 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of exports |
2541.384 |
2879.010 |
1719.587 |
|
|
|
Dispatch money (On cash basis) |
2.044 |
12.034 |
0.000 |
|
|
|
Dividend income |
0.000 |
500.930 |
0.000 |
|
|
|
Interest (On cash basis) |
3.604 |
6.149 |
9.321 |
|
|
|
Rebate |
21.519 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
2568.551 |
3398.123 |
1728.908 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Traded Products |
4157.789 |
12792.526 |
354.526 |
|
|
|
Stores & Spares |
22.301 |
59.381 |
13.927 |
|
|
|
Capital Goods |
121.423 |
770.086 |
25.974 |
|
|
TOTAL IMPORTS |
4301.513 |
13621.993 |
394.427 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.98 |
5.54 |
4.90 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
9654.270 |
15452.870 |
13588.440 |
|
Total Expenditure |
7910.410 |
13322.030 |
11289.560 |
|
PBIDT (Excl
OI) |
1743.860 |
2130.840 |
2298.880 |
|
Other Income |
103.100 |
117.560 |
115.250 |
|
Operating
Profit |
1846.960 |
2248.390 |
2414.140 |
|
Interest |
300.120 |
269.420 |
230.640 |
|
Exceptional
Items |
43.690 |
0.000 |
0.000 |
|
PBDT |
1590.530 |
1978.970 |
2183.500 |
|
Depreciation |
683.250 |
676.920 |
666.920 |
|
Profit
Before Tax |
907.280 |
1302.050 |
1516.580 |
|
Tax |
267.590 |
441.430 |
442.350 |
|
Reported PAT |
639.690 |
860.620 |
1074.230 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
639.690 |
860.620 |
1074.230 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
6.84
|
4.89
|
7.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.04
|
6.92
|
9.86 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.57
|
7.18
|
10.29 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.26
|
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.17
|
3.00
|
1.85 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.14
|
1.21
|
3.16 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Chambal Fertilisers and Chemicals Limited is
Tribute to Dr. K. K.
Birla
The Board of Directors noted with deep regret the sad demise of the Company's founder Chairman, Dr. K.K. Birla on August 30, 2008. Dr. K.K. Birla was born in Pilani (Rajasthan) on November 11,1918. Dr. K.K. Birla was a visionary, philanthropist, educationist and noted parliamentarian apart from being a leading industrialist. Spiritual strength and moral values were part of his personal credo.
Dr. K.K. Birla was known for his dignified unassuming personality, intellect, meticulous planning, deep regard for punctuality, business acumen and dynamic leadership. He made an indelible mark in the field of
industry, education, politics, art and culture. For him, achieving excellence was a journey and not a destination. The K.K. Birla Group covers a wide canvas with interest in fertilisers, media, textiles, sugar,
shipping, engineering, engineering services, financial services, furniture, information technology and infrastructure sectors.
The Board places on record its gratitude of the valuable guidance provided by Dr. K.K. Birla during his association with the Company since inception.
Operations
The Company has three Businesses i.e. Fertiliser, Shipping and Textiles.
The Fertiliser Business is by far the largest among the three businesses. The
Fertiliser Business comprises of ‘own manufactured Urea’ and trading of
phosphatic and potassic fertilisers as well as agri-inputs like seeds,
pesticides, micro-nutrients, etc. The fertilizer plants have stabilized after
partial de-bottlenecking. While Fertiliser business remained steady during
2009-10, Shipping and Textile businesses faced severe recessionary trends
although Textile business was upbeat towards the year end. The performance of
the Company as a whole was satisfactory.
The Company added one new ship during the year. With this addition, it
has a total fleet of 6 Aframax tankers. The Shipping Business performed well
considering the severe global downturn as it had long term charter contracts
with the reputed parties for four of its ships. The Textile Business achieved
increase in revenues due to better realizations and change in product mix
during the year.
Joint Ventures and
Associates
(i) Indo Maroc Phosphore S. A.,
(ii) Zuari Investments Limited
The Company has divested its entire holding in Zuari Investments
Limited. Accordingly, Zuari Investments ceased to be an associate of the
Company.
Subsidiaries
(i) Chambal Infrastructure Ventures Limited
Chambal Infrastructure Ventures Limited. (“CIVL”) is a wholly owned
subsidiary of the Company. This subsidiary was set up for development of Power
projects. It had set up two wholly owned subsidiaries viz. Chambal Energy
(Chhattisgarh) Limited and Chambal Energy (Orissa) Limited. For taking up power
projects in the states of Chhattisgarh and Orissa, respectively. During the
year, there was not much of activity in CIVL or its subsidiaries.
(ii) CFCL Overseas Limited,
CFCL Overseas Limited. was incorporated as a special purpose vehicle and
wholly owned subsidiary of the Company for consolidation of its entire software
business. CFCL Technologies Limited is the flagship Company for software
business and also a subsidiary of CFCL Overseas Limited. During the year, one
of the subsidiaries of CFCL
Technologies Limited., acquired Fiserv Fulfillment Services Inc.,
acquisition is a major milestone in the software business strategy and
as a result the business has achieved minimum critical mass in the Home
Mortgage segment.
The primary offerings of FFS are Valuation Services, Title Services,
Mortgage Processing and Home Retention Services. Post acquisition of FFS, the
software business has been realigned into three segments viz., Origination,
Servicing and Technology services. The software business now provides
comprehensive end to end products and services in the mortgage industry. The
Software business as a whole earned revenues of USD 36.400 Million and EBIDTA
(before Merger and Acquisition expenses) of USD 2.700 Million during the period
April to December 2009.
(iii) India Steamship Pte.
Due to economic downturn and very poor spot markets, operations of India
Steamship,
Exemption: The Company has received approval of the Government of India,
exempting it under section 212(8) of the Companies Act, 1956 from attaching
with its Annual Report, the copies of the Balance Sheet, Profit and Loss
Account, Board of Directors’ Report and Auditor’s Report of its subsidiary
companies. However, pursuant to Accounting Standard 21 issued by the Institute
of Chartered Accountants of India, Consolidated Financial Statements presented
by the Company include the financial information of its subsidiaries, as
applicable. The Company will make available the Annual Accounts of its
subsidiaries along with relative detailed information upon
request by investors of the Company or its subsidiaries. The Annual Accounts
of the subsidiaries will be available for inspection at the Company’s corporate
office and that of the subsidiaries. Further, the Annual Accounts of these
entities will also be available at the ‘Investor Service Centre’ section of the
Company’s website, www.chambalfertilisers.in
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
FERTILISER DIVISION
INDUSTRY STRUCTURE
Urea production capacity in
Further growth in capacity through investments in
Developments in
Government Policies
Pending formulation of a pricing policy for Urea, New Pricing Scheme
(NPS) -Stage III which was valid upto 31.03.2010, has been further extended
provisionally.
The new Fertiliser Investment Policy for Urea was notified last year.
The main feature of the new policy is the shift from ‘cost plus’ approach to
‘Import Parity Price’ basis for the new investments i.e. Revamp, Brownfield,
Greenfield or Revival. For determining the import parity, the floor and ceiling
prices have been fixed at US$ 250 per MT and US$ 425 per MT, respectively. The
additional Urea from the Revamp of existing units, expansion projects and
Brownfield projects will be recognized at 85%, 90% and 95% respectively of the
Import Parity Price. As the policy is predicated upon the continued
availability of KG-D6 basin gas supplies at a fair price, there is an urgent
need to augment Gas supplies domestically or come to formula wherein potential
investors are assured of a cost neutralization of inputs beyond a level.
The Government is currently working on a suitable amendment to this
policy to take care of industry concerns and the company is actively tracking
these developments.
The Government has also notified the Operation of the Nutrient Based Subsidy
Scheme (NBS) for Potassic and
Phosphatic fertilisers although Nitrogenous fertilisers have been
currently kept out of the purview of the policy. Under NBS, the Government
fixes subsidies on the basis of nutrient content in a product rather than a formula
based subsidy linked to a product. The new policy seeks to emphasize the
balanced nutrition of the soil consistent with rational economic principles.
This move of the Government is a step in the right direction and will drive
producers as well as importers to improve production, procurement and
distribution efficiencies. This move is also consistent with focus on marketing
and customer service through competition. The Company sees this development as
an opportunity to expand its product range in Potassic and Phosphatic
fertilisers through an active overseas procurement programme. This will further
strengthen the Company’s flagship brand ‘Uttam’ under which these products will
be sold. It will also enable the Company to reach more farmers and dealers and
strengthen its leadership position in the crucial markets of
Natural Gas
Scenario
The year saw a marked reduction in the international prices of oil and
gas in the first quarter on account of the economic slowdown in the developed
economies. The markets, however, revived and the oil prices have inched back to
USD 75-85 per barrel range. The international oil prices have a direct bearing
on the gas prices due to a close correlation between the oil and the gas
prices.
The Company has a basket of sources from which natural gas is supplied
to its plants at Gadepan. Re-gasified LNG (RLNG) constitutes a major quantum of
gas supplies and the prices under the contracts have been rising due to
increase in the international oil prices. The Company is taking steps for
reduction in the overall gas cost and has requested the Government of India to
replace a part of RLNG volumes with the gas from the KG-D6 basin in line with a
mandate from the Empowered Group of Ministers.
OPERATIONAL AND
FINANCIAL PERFORMANCE
The Company sold 20.14
The Company is gradually increasing its marketing reach by expanding its
marketing network to
I. Industry
structure
The Shipping Industry plays very vital role in international trade as
most of the transportation across the continents is carried out through sea
route. The two major segments of the shipping trade are dry bulk and tanker.
The Company operates into tanker segment through its own Aframax tankers as
well as in-chartered tankers. The Shipping Industry world wide has seen their
top and bottom lines plunge since 2009. Most charterers/owners have followed a
wait and watch policy with few transactions taking place either with respect to
time charters or sale and purchase of ships. The spot markets have continuously
dipped with aframax tanker charter rates moving from almost USD 50,000 per day
in 2008 to USD 16,000 per day in 2009. Similarly, asset prices in the segment
moved down from a high of around USD 80 million in 2008 to subpar USD 60
million in 2009.
Outlook
The Shipping Industry operates as a global trade and is closely linked
to the world economic environment. The world economy has been in recession
since the last quarter of 2008 and year 2009 saw some extremely poor rates in
the tanker market. The Industry is still facing a considerable challenge in the
form of massive order book with almost 30% of the existing tanker fleet
scheduled to be delivered over the next 3 years.
However, International Monetary Fund recently upgraded its world
economic growth outlook to 3.9% this year and 4.3% for 2011. Higher economic
activities should stimulate energy consumption which in turn will help in
turning around the fortunes of shipping industry. Overall, there is an
atmosphere of cautious optimism in the shipping industry.
FINANCIAL AND
OPERATIONAL PERFORMANCE
The summarised performance of Shipping Division during the year was as
under:
2009-10
2008-09
Sales (Rs. In Millions)
2766.000 4116.100
EBIDTA (Rs. In Millions)
1191.000
1768.700
BIRLA TEXTILE
MILLS - SPINNING DIVISION
Industry Structure
Outlook
Indian textile industry has shown recovery signs in year 2010, following
the dismal operating environment that prevailed for two consecutive years. The
recovery should be supported by a pick-up in export demand, government
stimulus, improved liquidity and a stable-to-growing domestic demand for
textile products. Modernization will enable the companies in providing quality
and volume solutions which is in constant demand by international buyers.
Appreciation of the Indian Rupee remains a challenge for Indian
exporters since it lowers their competitive advantage against their Asian peers
in
Operational and
Financial Performances
The Yarn sales and average spindle utilization during the year 2009-10
were flat at 21324 MT and 95.77%, respectively. The revenue and margins have
improved mainly due to favourable market conditions in the later half of the
year.
Contingent
liabilities (not provided for) in respect of following:
Rs. In Millions
|
S. No |
Particulars |
2009-10 |
|
i) |
Outstanding amount against counter guarantees given to Banks/Financial Institutions on account of loans given by the said Banks/Financial Institutions to Bodies Corporate. |
31.430 |
|
ii) |
Demand raised by Customs, Sales-Tax and Income Tax authorities being disputed by the Company |
583.584 |
|
iii) |
Differential amount of custom duty in respect of machinery imported under EPCG Scheme including interest thereon. |
-- |
|
iv) |
Various labour cases |
Amount not ascertainable |
|
v) |
Other claims against the Company not acknowledged as
debts. |
0.424 |
|
vi) |
Claim against Nihat Shipping Company Limited. In legal suits/notices, in which the Company has been made a party, is being contested, since the Company acted as Agents/Technical & Operational managers. |
22.204 |
Fixed Assets:
- Land – Freehold
- Land – Leasehold
- Building
- Leasehold Improvements
- Railway Siding
- Plant and Machinery
- Equipment
- Furniture and Fitting
- Vehicle
- Vehicle (On Finance Lease)
- Ships
- Software
AS PER WEBSITE
DETAILS:
PROFILE:
Subject
is one of the largest private sector fertilizer producers in
Subject
caters to the need of the farmers in ten states in Northern, Central and
Western regions of
The
Company has donned the mantle of providing all agri-products through a ‘single
window’ to enable the farmer to buy all products from one source. The Company
dealers provide Urea and other agri-inputs like DAP (Di-Ammonium Phosphate),
MOP (Murate of Potash), SSP(Single Super Phosphate), pesticides and seeds. Most
of these products are sourced from reputed suppliers and sold under the ‘Uttam’
umbrella brand. Today, the Company has attained a leadership position in the
pesticide business in
To establish a closer bond and to provide personalised services, Chambal has also started the ‘Uttam Bandhan’ program under which crop and product demonstrations, field demonstrations and farmer meets are conducted. Soil and water testing are also conducted for free at Chambal’s laboratories and experts emphasize the balanced use of fertilisers.
To encourage the new age farmer, a website, 'uttamkrishi.com', provides information on the weather, suitable cropping techniques and markets. ‘Hello Uttam’ telephonic helplines have been set up to answer the queries raised by farmers. Unemployed youth from villages are enrolled as ‘Uttam Krishi Sewaks’. They are trained in the latest techniques and provide specialised services to farmers.
The company has won the Sword of Honour from the British Safety Council for two years running. It has been awarded ISO 14001 (Environment Management System Standard), ISO 9001 (Quality Management System Standard) and OHSAS 18001 (Occupational Health and Safety Management System Standard) certifications.
Chambal is committed to its social responsibilities and has invested in water harvesting, healthcare, rural infrastructure, education and women empowerment. It also provides education aid to rural schools. A mobile medical unit with a doctor visits the villages in the vicinity of the plant, on a daily basis, providing free check-ups and medication. Chambal constantly tries to improve the quality of life in the areas it operates in. Chambal has won the coveted Golden Peacock Award for Corporate Social Responsibility for the year 2009-10.
Today, Chambal Fertilisers has consolidated its position in agri-business and diversified into other sectors. Its shipping division under the name India Steamship operates 6 Aframax tankers with a combined capacity of over 6,00,000 DWT. Birla Textile Mills is the textile division of Chambal Fertilisers, located at Baddi, in Solan district of Himachal Pradesh. The mill has a state-of-the-art spinning unit with a capacity of over 83,000 spindles.
In
addition, Chambal Fertilisers has other business interests through its
subsidiary in the software sector. It also has a joint venture in
Board of
Directors:
S.K. Poddar – Chairman
Mr.
S.K. Poddar, aged about 62 years, is a Gold medalist in B.Com Honors from
Mr. Poddar is Chairman of Areva T and D India Limited, Gillette India Limited,
Simon India Limited, Texmaco Limited, Indian Furniture Product Limited, Zuari
Cement Limited, and Zuari Industries Limited He is also on the Board of Lionel
India Limited, Bengal Foodpark Limited, and Poddar Heritage Investments Limited
Internationally Mr. Poddar is on the Board of Gillette Management Inc,
Mr. Poddar is past president of Indian Chamber of Commerce and Federation of
Indian Chambers of Commerce and Industry (FICCI), Indian Council of
Arbitration, All India Organisation of Employers and Council of Indian Employers.
Shyam S. Bhartia – Co-Chairman
Mr.
S.S. Bhartia, aged about 55 years, is an eminent industrialist. He is Chairman
and Managing Director of Jubilant Organosys Limited. He is fellow member of the
H.S. Bawa – Vice Chairman
Mr.
H. S. Bawa, aged about 77 years, is Managing Director of Zuari Industries
Limited. After getting his Masters Degree in Petroleum Engineering from
Anil Kapoor – Managing Director
Mr. Anil Kapoor, Managing Director, aged about 54 years, is B. Tech in Chemical Engineering from IIT Delhi and M. S. in Chemical Engineering from USA with 28 years of experience in areas of production, logistics, purchase, finance, legal, administration, customer service and in general management with Indian and Multinational groups. He joined Chambal in 2000 as Vice President - Strategic Planning and was elevated as President - Strategic Planning. He was appointed as Managing Director of Chambal in February, 2007. Before his appointment as Managing Director, he was deputed to Zuari Industries Limited as Executive President for a period of 2 years.
R.N. Bansal
Mr. R. N. Bansal, aged about 78 years, is M.A. (Economics) and a member of Institute of Chartered Accountants of India and Institute of Company Secretaries of India. He is an eminent professional and is on the Boards of many companies. He has also served the Department of Company Affairs in various capacities viz., Registrar of Companies, Regional Director and was a member of Company Law Board. He was Director (Investment) in the Ministry of Finance. He has also been a nominee of the Central Government on the Central Council of Institute of Chartered Accountants of India, Institute of Company Secretaries of India and the Governing Board of various Stock Exchanges, etc.
Dipankar Basu
Mr.
Dipankar Basu aged about 72 years, is M.A. (Economics). Mr. D. Basu is the
non-executive Chairman of Securities Trading Corporation of India Limited. He
is also on the Board of several other companies in
C.S. Nopany
Mr.
Chandra Shekhar Nopany, aged about 42 years is a Chartered Accountant and
Master of Science in Industrial Administration from
Apart from being the Chairman and Managing Director of The Oudh Sugar Mills
Limited, Chairman of Sutlej Industries Limited and Vice Chairman of Sutlej
Textiles and Industries Limited, he is also on the Board of several other
companies.
K. N. Memani
Mr.
Kashi Nath Memani, a Chartered Accountant is former Chairman and Country
Managing Partner of Ernst and
Mr. Memani is on the boards of several listed Companies like DLF Limited, ICICI
Venture Funds Management Company Limited, HT Media Limited, Aegon Religare
Insurance Company Limited, etc. He is also a member of governing bodies of some
business schools and social, educational and charitable organizations and
Foundations
Mr. Memani is associated with various Chambers of Commerce. He is a member of
the Managing Committees of Federation of Indian Chambers of Commerce and
Industry (FICCI), Indo American Chamber of Commerce, American Chamber of
Commerce, Associated Chamber of Commerce and PHD Chamber of Commerce.
Mr. Memani was member of External Audit Committee of IMF, Washington in the
year 1999 and its Chairman in the year 2000, the only Indian so far to sit on
this committee.
Marco P.A. Wadia
Mr. Marco P. A. Wadia, aged about 52 years, is a partner in Crawford Bayley and Co., Advocates and Solicitors and has about 26 years of experience in the legal profession specialising in corporate matters and mergers and acquisitions. He joined the Board of Company as an Alternate Director in 1994 and was subsequently appointed as a Director w.e.f. April 11, 2000.
Radha Singh
Ms.
Radha Singh has retired from Indian Administrative Service. Before retirement,
she was holding the position of Agriculture Secretary, Government of India. She
has a long experience of 39 years in public service in areas of rural and
agriculture development, water resources, public finance and institution
building. In her capacity as Agriculture and Cooperation Secretary, she also
headed various organizations as Board Member/ Chairperson.
She also held high level policy and managerial positions in the Government of
India. These Included as Secretary, Department of Animal Husbandry, Dairying
and Fisheries; Additional Secretary in the Ministry of Water Resources, etc.
She was associated with the World Bank in
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice
information has been collected from various sources including but not limited
to: The Courts,
1] INFORMATION ON DESIGNATED PARTY
No records exist designating subject or any
of its beneficial owners, controlling shareholders or senior officers as
terrorist or terrorist organization or whom notice had been received that all
financial transactions involving their assets have been blocked or convicted,
found guilty or against whom a judgement or order had been entered in a
proceedings for violating money-laundering, anti-corruption or bribery or
international economic or anti-terrorism sanction laws or whose assets were
seized, blocked, frozen or ordered forfeited for violation of money laundering
or international anti-terrorism laws.
2] Court Declaration :
No records exist
to suggest that subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of Anti-Corruption
Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No available information exist that suggest
that subject or any of its principals have been formally charged or convicted
by a competent governmental authority for any financial crime or under any
formal investigation by a competent government authority for any violation of
anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation with Government :
No record exists to suggest that any
director or indirect owners, controlling shareholders, director, officer or
employee of the company is a government official or a family member or close
business associate of a Government official.
9] Compensation Package :
Our market survey revealed that the amount
of compensation sought by the subject is fair and reasonable and comparable to
compensation paid to others for similar services.
10] Press Report :
No
press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as
part of its Due Diligence do provide comments on Corporate Governance to
identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our Governance
Assessment focuses principally on the interactions between a company’s
management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject is not
known to have contravened any existing local laws, regulations or policies that
prohibit, restrict or otherwise affect the terms and conditions that could be
included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.52 |
|
|
1 |
Rs.72.71 |
|
Euro |
1 |
Rs.64.41 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
58 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.