MIRA INFORM REPORT

 

 

Report Date :

05.08.2011

 

IDENTIFICATION DETAILS

 

Name :

RASHTRIYA CHEMICALS AND FERTILIZERS LIMITED

 

 

Registered Office :

Priyadashani, Eastern Express Highway, Sion, Mumbai – 400 022, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

06.03.1978

 

 

Com. Reg. No.:

11-020185

 

 

Capital Investment / Paid-up Capital :

Rs.5516.900 millions

 

 

CIN No.:

[Company Identification No.]

L24110MH1978GOI020185

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR04953E

MUMR15728G

 

 

PAN No.:

[Permanent Account No.]

AAACR2831H

 

 

Legal Form :

Public limited liability company. The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer and Marketer of chemical fertilizers and industrial chemicals.

 

 

No. of Employees :

4278 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (67)

 

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 73486000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having good track. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessman. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal business dealings at 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)

India

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/ Corporate Office :

Priyadashani, Eastern Express Highway, Sion, Mumbai – 400 022, Maharashtra, India

Tel. No.:

91-22-24070968/0223/8590/24070024/24045024/25522260/24045001/2/3/4

Fax No.:

91-22-2407 0386/24070028/25522320

E-Mail :

investorcommunications@rcfltd.com

cmdrcf@bom3.vsnl.net.in 

kcprakash@rcfltd.com   

company_secretarial@rcfltd.com

Website :

http://www.rcfltd.com

 

 

Administrative Office :

Administrative Building, Mahul Road, Chembur, Mumbai – 400 074, Maharashtra, India

Tel. No.:

91-22-25522000/25522040 (Board No.)

 

 

Marketing Office :

Located at :

 

·         Kadapa

·         Khammam

·         Nizamabad

·         Vijaywada

·         Visakhapatnam

·         Bihar and Jharkhand

·         Patna

·         Chhatisgarh

·         Raipur

·         Delhi Punjab Haryana HP and Chandigarh

·         Gujarat

·         Karnataka

·         Hassan

·         Hubli

·         Raichur

·         Madhya Pradesh

·         Maharashtra

·         Aurangabad

·         Jalgaon

·         Kolhapur

·         Konkan

·         Nagpur

·         Nasik

·         Pune

 

 

Resident Representative at Delhi :

A-1, Qutab Hotel, Off Aurobindo Marg, New Delhi – 110 016, India

Contact Person: Mr. M. K. Gera (Chief Marketing Manager)

Tel. No.:

91-11-26851419 (Office) / 2723 2637 (Res.)

 

 

Guest House:

Ark Guest House, RCF Colony, Chembur, Mumbai – 400 074, Maharashtra, India

Contact Person: Mr. A. N. Borkar, Chief Executive Officer

Tel. No.: 91-22-25583981 (Office) / 25551242 (Res.)

 

Swagat Guest House, Kihim, District Raigad, Alibaug, Maharashtra, India

Contact Person: Maj. Ranade, CAM

Tel. No.: 91-2141-238028 (Office) / 238019 (Res.)

 

 

DIRECTORS

 

As on : 31.03.2010

 

Name :

Mr. U.S. Jha

Designation :

Chairman and Managing Director

 

 

Name :

Mr. J. Kohareswaran

Designation :

Director (Marketing)

 

 

Name :

Mr. Gautam Sen

Designation :

Director (Finance)

 

 

Name :

Mr. Mathew C. Kunnumkal, IAS

Designation :

Additional Secretary and Financial Advisor Department of Fertilizers, New Delhi

 

 

Name :

Mr. Deepak Singhal, IAS

Designation :

Joint Secretary Department of Fertilizers, New Delhi

 

 

Name :

Mr. I.C. Srivastava, IAS

Designation :

Retired Director

Address:

4 Ka-26, Jawahar Nagar, Jaipur-302004

 

 

Name :

Dr. Ashok Misra

Designation :

Director

Address:

Intellectual Ventures India, #701, Raheja Paramount, 138, Residency Road, Bangalore-560025, India.

 

 

Name :

Dr. Rajagopalan, IAS

Designation :

Additional Secretary and Financial Advisor, Department of Fertilizers, New Delhi

 

 

KEY EXECUTIVES

 

Name :

Mr. Ajoy Kumar, IAS

Designation :

Chief Vigilance Officer

 

 

Name :

Mr. R. K. Jain

Designation :

Executive Director (Trombay)

 

 

Name :

Mr. A. B. Ghasghase

Designation :

General Manager [IPD]

 

 

Name :

Mr. K.K. Phadnis

Designation :

Executive Director (HR)

 

 

Name :

Mr. P.K. Lahiri

Designation :

Executive Director (IA)

 

 

Name :

Mr. Bhunesh Mathur

Designation :

Executive Director (M)

 

 

Name :

Mr. C. M. T. Britto

Designation :

General Manager [Coordn]

 

 

Name :

Mr. V. G. Londhe

Designation :

General Manager [Fin. And IT]

 

 

Name :

Mr. Kumar Gupta

Designation :

Chief General Manager (Projects)

 

 

Name :

Mr. R. B. Patil

Designation :

General Manager [Fin. Tr.]

 

 

Name :

Mr. Rajesh Aggarwal

Designation :

Chief General Manager (O) : Thal

 

 

Name :

Mr. P.M.C. Nair

Designation :

Chief General Manager (Corp)

 

 

Name :

Mr. V.B. Gandhalikar

Designation :

Chief General Managers (Tech) Tr.

 

 

Name :

Mr. R.H. Kulkarni

Designation :

Chief General Manager (Finance)

 

 

Name :

Mr. Dilip Ranade

Designation :

General Manager [Vin]

 

 

Name :

Mr. Mukund M. Patil

Designation :

General Manager (Fertilizer Marketing)

 

 

Name :

Mr. B.B. Prasad

Designation :

General Manager (Tech) Thal

 

 

Name :

Mr. Sudhir Parkhi

Designation :

General Manager (HR) Corporation

 

 

Name :

Mr. Bhaskar Das

Designation :

General Manager [project] Thal

 

 

Name :

Mr. P.B. Asai

Designation :

General Manager (HWP and Chem): Thal

 

 

Name :

Mr. Vikas D. Bhat

Designation :

General Manager (C)

 

 

Name :

Mr. P.S. Patare

Designation :

General Manager (Fertilizers Marketing)

 

 

Name :

Mr. K.C. Prakash

Designation :

Company Secretary

 

 

Name :

Mr. B. Nagraj

Designation :

General Manager (Research and Development)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2011

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Central Government / State Government(s)

510,314,900

92.50

Sub Total

510,314,900

92.50

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

510,314,900

92.50

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

927,145

0.17

Financial Institutions / Banks

1,223,473

0.22

Insurance Companies

7,034,664

1.28

Foreign Institutional Investors

382,637

0.07

Sub Total

9,567,919

1.73

(2) Non-Institutions

 

 

Bodies Corporate

7,697,165

1.40

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

19,255,954

3.49

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

2,841,592

0.52

Any Others (Specify)

2,010,570

0.36

Clearing Members

972,431

0.18

Non Resident Indians

1,017,939

0.18

Overseas Corporate Bodies

900

-

Trusts

19,300

-

Sub Total

31,805,281

5.77

Total Public shareholding (B)

41,373,200

7.50

Total (A)+(B)

551,688,100

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

551,688,100

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Marketer of chemical fertilizers and industrial chemicals.

 

 

Products :

Item Code Number (ITC CODE)

Product Description

3102.10

Urea

3105.20

Complex Fertilizers

2814.10

Ammonia 

 

PRODUCTION STATUS (AS ON 31.03.2010)

                                                                                                                       

Metric Tonnes

Products

Licensed Capacity

Installed * Capacity (As certified by the Management)

“Annual Production

Without Adjustment for Shortages / Excesses”

Ammonia

116000

115500

87856

Ammonia (Trombay-V)

297000

297000

330235

Ammonia (Thal)

NA

990000

1128320

Urea (Trombay-V)

427500

330000

306905

Urea (Thal)

NA

1706800

1782171

Suphala15:15:15 (Complex Fertilizers)

300000

300000

490000

Suphala 20:20:20 (Ammonium Nitrate Phosphate)

361000

361000

17070

Methanol

37500

49500

44103

Ammonium Bicarbonate

NA

4000

24722

Argon (million NM3)

NA

3

1.9

Aragon (million NM3) Thal

N.A

8

4.2

Nitric Acid (100%)

101600

105600

99710

Nitric Acid (100%) (Trombay IV)

255000

247500

263105

Sulphuric Acid (98%)

99000

99000

59753

Phosphoric Acid

32000

30000

17040

Dilute Sulphuric Acid

NA

0

64194

Sodium Nitrate/Nitrite

4000

4000

5360

Concentrated Nitric Acid

NA

20000

18051

Methylamines - (Trombay)

4000

4000

5887

Methylamines - (Thal)

NA

11400

11056

Ammonium Nitrate (100%)

54000

54000

164288

Dimethyl formamide

NA

2500

3161

N-15 (Grams)

NA

800

0

T. G. Urea (Thal)

NA

0

8529

Di Methyl Acetamide

NA

5000

1642

Carbon Monoxide Plant (million NM3)

NA

9.5

4.5

Biola (Bio Fertilizer)

150

150

310

Microla (Ltrs)

100000

100000

183250

Formic Acid

NA

10000

5341

Sujala 19:19:19

NA

150

4010

* Relied upon by Auditors without verification, this being a technical matter.

 

 

GENERAL INFORMATION

 

No. of Employees :

4278 (Approximately)

 

 

Bankers :

v      State Bank of India

Swastik Chamber, Chembur, Mumbai-400071, Maharashtra, India.

 

 

Facilities :

SECURED LOANS

                                                                                                (Rs. in millions)

Particulars

31.03.2010

31.03.2009

Term Loan from Banks

 

 

1. Rupee Loan from Banks

 

 

a. Loan from State Bank of Hyderabad (SBH)'

A term loan facility of Rs.1000 millions sanctioned by SBH availed by the Company is secured by hypothecation with, first pari passu .charge on Ammonia V plant at Trombay for a value Rs.1000 millions (Amount repayable within one year Rs. 285.700 millions P.Y. Rs. 285.700 millions.

0.000

285.700

b. Loan from State Bank of Bikaner and Jaipur (SBBJ) A term loan facility aggregating to Rs.1064.100 Millions sanctioned by SBBJ availed by the company are secured by hypothecation with first charge on project assets of Con. Nitric Acid Plant at Trombay and Agron Recovery Plant at Thai and parri passu first charge basis on the project asset of Rapidwall Plant at Trombay.

(Amuont repayable within one year Rs.167.300 millions P.Y. Rs.95.000 Millions)

931.000

926.000

Loan from Syndicate Bank

A loan of Rs.700.000 Millions sanctioned by and availed from Syndicate Bank is secured by hypothecation of Plant and Machinery pertaining to manufacture of granulated Ammonium Nitrophosphate  Plant at Trombay.

(Amount repayable within one year Rs.53.300 Millions P.Y. Nil)

700.000

0.000

Loan from New India Cooperative Bank Limited.

A loan of Rs.240 Millions sanctioned by and availed from New India Cooperative Bank is secured by first pari passu charge by way of hypothecation on all movable fixed assets of the Menthol Plant with a minimum security cover of 1.25 times of the amount borrowed from this Bank.

(Amount repayable within one year Rs.53.300 Millions P.Y. Nil)

240.000

0.000

Loan from Kotak Mahindra Bank.

An amount of Rs.650.000 Millions borrowed as of 31.03.2010 out of Rs.750.000 Millions sanctioned by Kotak Mahindra Bank is secured by first pari passu charge by way of hypothecation on all fixed assets of the Methanol Plant with a minimum security cover of 1.25 times of the amount borrowed from this Bank.

(Amount repayable within one year Rs. Nil P.Y. Rs. Nil)

650.000

0.000

 

 

 

2. Foreign Currency Loan l External Commercial Borrowings

 

 

a. Loan from ICICI Bank Limited  (ADB)

A term loan (USD 5.50 million availed by the company during 2004-05 was secured by hypothecation of all tangible movable Machinery and Plant required for up gradation of High Pressure Nitric Acid Plant at Trombay (both present and future),whether installed or not and whether lying loose or in case at site or in transit or which may at any time hereafter during the continuance of this security be installed or lying loose or in case or being. in or upon or about the borrower's premises arid godown at Trombay or wherever else the same may be or be held by any party

anywhere to the order and disposition of the Company or in course of transit to the Company.(Amount repayable within one year Rs. 12.400 millions P.Y. Rs. 56.000 millions)

12.400

70.100

b. Loan from Calyon Credit Agricole CIB Singapore (Calyon)

 Term Loan of JPY 109,176,141 availed by the Company from Calyon, is secured by hypothecation on pari passu first charge basis on the project assets of Rapid wall Plant at Trombay. (Amount repayable within one year Rs. 10.600 millions P.Y. Rs. 5.700 Millions)

47.600

56.600

B. Working Capital Loans

Cash Credit Account (Cash Credit Account is secured by hypothecation of entire stocks of raw materials and finished goods, consumable stores’ and spares, stock in transit, book debts)

0.000

14.600

C. Interest accrued and due

0.000

7.100

 

 

 

Total

2581.000

1360.100

 

UNSECURED LOANS

                                                                                                    (Rs. in millions)

Particulars

31.03.2010

31.03.2009

 

 

 

Short Term Loans from Banks

10727.400

12874.600

Interest accrued and due

0.000

7.600

 

 

 

Total

10727.400

12882.200

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

JCR  and Company

Chartered Accountants

Address :

Mumbai

Name :

K S Aiyar and Company

Chartered Accountant

Address :

Mumbai

Name :

Mr. Anil Agrawal

Chartered Accountant

Address :

B – 139, Kalkaji, New Delhi – 110019, India

 

 

Subsidiaries :

v      Rajasthan Rashtriya Chemicals and Fertilizers Limited

 

 

Joint Ventures ;

v      Fact-RCF Building Products Limited

v      Urvarak Videsh Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

800000000

Equity Shares

Rs.10/- each

Rs.8000.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

551688100

Equity Shares

Rs.10/- each

Rs.5516.900 millions

 

 

 

 

 

(Of the above 112528100 shares were allotted as fully paid-up pursuant to a contract without payment being received in cash)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

5516.900

5516.900

5516.900

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

12854.500

11213.500

9872.200

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

18371.400

16730.400

15389.100

LOAN FUNDS

 

 

 

1] Secured Loans

2581.000

1360.100

11040.400

2] Unsecured Loans

10727.400

12882.200

1394.400

TOTAL BORROWING

13308.400

14242.300

12434.800

DEFERRED TAX LIABILITIES

1637.400

1487.100

1660.900

 

 

 

 

TOTAL

33317.200

32459.800

29484.800

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

12427.100

10771.600

10541.400

Capital work-in-progress

1400.500

2365.800

1146.800

 

 

 

 

INVESTMENT

153.000

352.500

3596.900

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
4095.900
6926.900

8655.200

 

Sundry Debtors
8589.800
17881.700

11375.600

 

Cash & Bank Balances
7846.500
4118.000

493.100

 

Other Current Assets
12245.600
6477.500

0.000

 

Loans & Advances
2022.000
2779.600

2313.200

Total Current Assets
34799.800
38183.700

22837.100

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors & Other Current Liabilities
13234.800
16476.100

5893.800

 

Provisions
2228.400
2743.900

2758.900

Total Current Liabilities
15463.200
19220.000

8652.700

Net Current Assets
19336.600
18963.700

14184.400

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

6.200

15.300

 

 

 

 

TOTAL

33317.200

32459.800

29484.800

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

27101.000

30556.400

26290.200

 

 

Subsidy on Fertilizer

29320.100

53103.400

25112.500

 

 

Other Income

1797.500

1189.000

876.100

 

 

TOTAL                                     (A)

58218.600

84848.800

52278.800

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Purchase of Bought out Products

18460.900

27404.100

48363.800

 

 

Material Consumed

17124.400

19738.600

 

 

 

Salaries, Wages, Bonus, etc.

3586.500

3822.100

 

 

 

Power & Fuel

5521.200

13690.300

 

 

 

Freight and Handling charges

5291.300

5734.000

 

 

 

Excise Duty

1.800

(4.100)

 

 

 

Repairs and Maintenance

733.600

698.800

 

 

 

Other Expenditure

1057.800

4804.800

 

 

 

Increase/(Decrease) in Finished Goods

924.300

3847.500

 

 

 

Research and Development

23.300

16.700

 

 

 

Loss on Impairment of Assets

(299.600)

(0.500)

 

 

 

Provision For Doubtful Debts/Claims/Advances

52.100

9.800

 

 

 

Provision For Bad Debts / Claims / Loans / Irrecoverable Amount Written off

0.100

80.100

 

 

 

Provision for obsolescence of stores and spares

13.600

16.500

 

 

 

Bad Debts Written off

617.500

5.400

 

 

 

Transfer Credits

(93.600)

(245.900)

 

 

 

Prior period adjustments

0.200

0.100

 

 

 

TOTAL                                     (B)

53015.400

79618.300

48363.800

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

5203.200

5230.500

3915.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

705.500

1107.200

662.500

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

4497.700

4123.300

3252.500

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1055.600

866.300

831.800

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

3442.100

3257.000

2420.700

 

 

 

 

 

Less

TAX                                                                  (H)

1093.400

1141.200

839.200

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

2348.700

2115.800

1581.500

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

1641.000

1341.300

NA

 

 

Dividend

606.900

662.000

NA

 

 

Tax on Dividend

100.800

112.500

NA

 

BALANCE CARRIED TO THE B/S

0.000

0.000

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods calculated on FOB basis

25.800

22.300

1.300

 

 

Freight and Insurance recovered

0.000

0.000

0.000

 

 

Tech. manpower fees

2.000

0.000

0.000

 

TOTAL EARNINGS

27.800

22.300

1.300

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1998.600

7470.900

2424.000

 

 

Stores & Spares

150.700

115.600

152.800

 

 

Capital Goods

46.400

207.200

185.200

 

TOTAL IMPORTS

2195.700

7793.700

2762.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

4.26

3.84

2.87

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

1st Quarter

30.09.2010

2nd Quarter

31.12.2010

3rd Quarter

31.03.2011

4th Quarter

30.06.2011

5th Quarter

Net Sales

7913.400

15628.600

15335.500

16193.600

8683.600

Total Expenditure

7486.300

14474.200

14389.300

15204.900

8448.000

PBIDT (Excl OI)

427.100

1154.400

946.200

988.700

235.600

Other Income

110.600

91.300

291.800

758.400

114.600

Operating Profit

537.700

1245.700

1238.000

1747.100

350.200

Interest

(12.400)

67.500

0.000

42.500

0.000

Exceptional Items

1.700

(1.100)

0.000

1.600

(9.100)

PBDT

551.800

1177.100

1238.000

1706.200

341.100

Depreciation

255.600

265.500

284.600

320.500

282.400

Profit Before Tax

296.200

911.600

953.400

1385.700

58.700

Tax

98.400

302.800

269.800

424.700

19.100

Provisions and contingencies

0.000

0.000

0.000

0.000

0.000

Profit After Tax

197.800

608.800

683.600

961.000

39.600

Extraordinary Items

0.000

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

0.000

Net Profit

197.800

608.800

683.600

961.000

39.600

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
4.03
2.49

3.02

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
12.70
10.66

9.21

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
7.29
6.16

6.35

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.19
0.19

0.16

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.57
1.22

0.56

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.25
1.93

2.64

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

Subject was incorporated in 1978 with the reorganisation of the erstwhile Fertiliser Corporation of India. Subject manufactures and markets a wide range of chemical fertilisers and a series of industrial chemicals. It has plants at Trombay and Thal.

 
Subject set up purge gas recovery units in order to recover ammonia, hydrogen, methane and argon from the purge gas coming out of the ammonia plants at Trombay and Thal. A dimethyl formamide plant (cap.: 2500 tpa) and a methylamine plant with a capacity of 5000 tpa were installed at Thal in 1991-92. It commissioned a dimethyl acetamide plant at Thal in 1993-94. In 1994-95, Subject signed a MoU with Saudi Formaldehyde Chemical Company, to set up a chemical complex in Saudi Arabia for the manufacture of 300 tpa of methanol. At present, Subject has four urea fertiliser plants, two complex fertiliser plants, four ammonia plants and several industrial product plants consisting of heavy water, methyl alchohol, methylamines, nitric acid, sulphuric acid, phosphoric acid, ammonium bicarbonate, sodium nitrate, sodium nitrite, dimethyl formamide and dimethyl acetamide. 

 
During 1998-99, the company has signed MOU with UCB S.A. Chemicals, Belgium, an internationally reputed chemicals manufacturing and marketing company having units all over the world, to produce 20000 MTPA, of Methylaminies and its derivatives at Thal. It has also commissioned 10000 MTPA Formica Acid Plant at Thal. 

 
The Company is envisaging a joint venture project for manufacturing DAP at Udaipur in Rajashtan with Hindustan Zinc Limited, Udaipur and Rajasthan State Mines and Minerals Limited and the final decision on feasibility project is awaiting. The company has invested around Rs 5000.000 millions for the upgradation of its plants at Trombay and is converting most of its existing plants to operate on natural gas. 

 
During 2000-2001, the company entered into an agreement with Metgas a subsidiary of Enron, for long term supply of regassified LNG. The Company has also recently commissioned the Naptha Feed Supplement Project at Thal, which would enable the plant to run at enhanced capacity by utilising alternate feed Naptha partly along with available gas from GAIL. To reduce steam consumption from Urea Plant at Thal the company implemented an energy saving optimization scheme at a cost of Rs. 400.000 millions.  

 
A major expansion plan at Thal plant consisting of 1350 MTPD Ammonia and 2200 MTPD urea plan is under awaiting the final approval from the Government of India at an estimated capital outlay of Rs.14460.000 millions. The Techno-economic Feasibility of Methylamine for expansion is under preparation. The total cost for the expansion is estimated to be Rs. 250.000 millions. The Disinvestment Ministry has started the process of disinvestment of the company and the Government is proposing to reduce 51% of its equity to a strategic partner, with transfer of Management Control. 

 
Subject has completed the project of modernization of the front end of H.P. Nitric Acid Plant at its Trombay unit, consisting of air compressor, reactor etc at cost of Rs. 858.100 millions in January 2005. The Company has planned to revamp the Trombay- V Ammonia Plant by upgrading the technology to improve efficiency and reduce energy consumption at an estimated cost of Rs. 2490.000 millions and this project will be completed by April 2006. The company has also planned to increase the production capacity of Methylamine plant at Thal to produce additional 6400 MTPA and this project is estimated at a cost of Rs.297.800 millions. Further the company has planned to setup 1 X 2000 MTPD Ammonia Plant and 1 X 3200 MTPD Urea Plant along with power generation, offsite, utilities and product handling facilities at Thal and this project is estimated at a cost of Rs. 18410.000 millions. The company has also planned for adopting Cryogenic separation of tail gas generated in Hydrogen Recovery Unit of Ammonia Plants at Thal, at an estimated cost of Rs. 700.000 millions.

 

Highlights for the year 2009-2010

 

The Company achieved a turn over of Rs.56971.800 millions compared to Rs.84553.200 Millions in the previous year. The turnover is lower by Rs 27581.400 millions during the year compared to previous year mainly due to lower imports of urea by Government of India and discontinuance of costly feed stock of Naptha leading to less subsidy realisation. The total income from operations was Rs. 58262.500 millions as against Rs. 85384.300 millions during the previous year. The Company achieved a gross profit of Rs.4396.600 millions as against Rs. 4872.000 millions. The net Profit before Tax at Rs. 3442.100 millions as against Rs. 3257.000 millions registered an increase of 5.68 % despite lower gross profit mainly due to substantial reduction in the net interest. The Net Profit after Tax during the current year, is higher at Rs.2348.700 millions as against Rs.2115.800 millions in the previous year registering an increase of 11 % over previous year. The net Interest post during the year has been Rs. 198.700 millions compared to Rs.749.300 millions during the previous year due to good treasury and foreign currency management which ensured reduction in interest cost and gain in foreign exchange transactions. The Company received 'MOU Excellent' rating for 2008-2009 and is likely to get the same for 2009-10 from Ministry of Heavy Industries and Public Enterprises.

 

MANAGEMENT DISCUSSION AND ANALYSIS:

 

OPERATIONAL RESULTS:

 

 PRODUCTION:

 

 FERTILIZERS:

 

The Company produced 25.96 lakh MT of fertilizers (Urea-20.89 lakh MT, Suphalal 5:15:15- 4.90 lakh MT and Suphala 20:20-0.17 lakh MT) during the year as against 23.75 lakh MT (Urea-19.04 lakh MT and Suphalal 5:15:15- . 4.71 lakh MT) produced in the previous year and achieved overall capacity utilisation of 96.23 % as against 88.030% during the previous year. The capacity utilisation of the Urea plants was to the extent of 102.56%. As regards complex fertilizers, Suphala [15:15:15] plant produced to the extent of 163.33% and Suphala 20:20 (ANP) produced 4.73%. In terms of nutrients, the Company produced 10.38 lakh MT of Nitrogen (N), 0.77 lakh MT of Phosphate (P2O5) and 0.74 lakh MT of Potassium (K2O) during the year as compared to 9.46 lakh MT of N, 0.71 lakh MT of P2O5 and 0.71 lakh MT of K2O during the previous year.

 

The performances of the units are given below:

.

THAI UNIT:

 

Thai unit produced 17.82 lakh MT of Urea during the year compared to 19.04 lakh MT produced in the previous year. The unit achieved a capacity utilisation of 104.41 % as compared to 111.55% during the previous year. The unit produced 11.28 lakh MT of Ammonia compared to 10.97 lakh MT during previous year. The Thai unit of the company was using naphtha as an alternative feedstock to overcome the gas shortage. With the availability of Reliance gas, the Company has stopped the usage of naphtha. Naphtha is a rich source of Carbon dioxide whereas gas does not provide the same level of Carbon dioxide required for converting entire ammonia produced into urea and hence the decline in urea production at Thai. The energy consumption per MT of Urea was 6.297 Qcal/ MT (6.472 Gcal in the previous year). In terms of nutrients in the fertlisers, the unit produced 8.20 lakh MT of N during the year compared to 8.76lakh MT during the previous year.

 

Thai unit of your Company bagged following awards during the year:

 

  1. National Energy Conservation award in appreciation of achievements in Energy conservation in Fertilizer Sector for the year 2009 was awarded by Government of India, Ministry of Power (2nd Prize).
  2. State Level award for excellence in Energy consumption and management for the year 2007-08 awarded on 5th July, 2009.
  3. Green Tech Environment Excellence Award in Gold Category for the year 2009.

 

The unit, continued to be certified for ISO-9001, ISO- 14001 and ISO18001 under Integrated Management System.

 

TROMBAY UNIT:

 

The Trombay Unit produced 3.07 lakh MT of Urea, 4.90 lakh MT of Suphala 15:15:15 and 0.17 lakh MT of ANP during the year compared to 4.71 lakh MT of Suphala 15:15:15 produced during the previous year. During the year company started receiving gas from KG Basin from April /May 2009. Government of India also declared a special dispensation for the Trombay Urea plant under the NPS III. As a result of this, the company could restart its Urea plant at Trombay after a gap of 6 years and it is very gratifying to note that the plant after initial problems has stabilized and running very efficiently.

 

ANP plant also started its operation and produced 17070 MT. The unit achieved an overall capacity utilization of 82.14 % compared to 47.53% during the previous year. In terms of Nutrient values, the unit produced 2.18 lakh MT of N during the year (previous year 0.71 lakh MT), and produced 0.77 lakh MT P2O5 ( previous year 0.71 lakh MT) and 0.74 lakh MT K2O (previous year 0.71 lakh MT).

 

The unit was bestowed with GREENTECH environment excellence award for "Environment Excellence In Fertilizer Sector" for the year 2008-09.

 

INDUSTRIAL PRODUCTS:

 

The Company is one of the prime chemicals manufacturers in the country producing several Industrial Chemicals at its two units. During the year, the Company produced 1.19 lakh MT of various major Industrial Chemical products compared to 1.30 lakh MT during the previous year. The Company produces, amongst others, Methanol, Methylamines and derivatives, Ammonium Nitrate, Sodium Nitrate/ Nitrite, Ammonium Bi-Carbonate, Formic Acid etc.

 

MARKETING PERFORMANCE:

 

FERTILIZER DIVISION:

 

The Company achieved sales volume of 40.73 lakh MT during 2009-10 as compared to 48.33 lakh MT in the previous year. The Company sold 28.62 lakh MT of Urea, 4.87 lakh MT of Suphala 15:15:15, and 0.16 lakh MT of Suphala 20:20 and 7.08 lakh MT of other bought out products such as DAP, MOP, etc. compared to 36.64 lakh MT of Urea, 5.03 lakh MT of Suphala 15:15:15, and 6.66 lakh MT of other bought out products, respectively during the previous year. The Company achieved highest sales in Biofertilizers (Biola), Micronutrients (Microla) and 100% water soluble fertilizer (Sujala), all produced by the Company. The total sale of- manufactured fertilizers during 2009-10 was 25.99 lakh MT as against 25.17 lakh MT in 2008-09 registering a nominal increase of 3%. The total sales value of manufactured fertilizers during the period 2009-10 was Rs. 12677.100 millions compared to Rs. 12319.800 millions in the previous year.

 

The total sale during the year was lower by 7.60 lakh MT, i.e. 36% mainly due to lower imports of urea by the Government of India. This was partly off-set by higher sales of Own-manufactured products. The total sales value

of bought out fertilizers during the period 2009-10 was lower at Rs.7801.900 millions compared to the previous year figure of Rs. 11290.500 millions.

 

The Marketing division of the Company received the FAI's prestigious "Excellence in Crop productivity improvement" for having achieved 50% increase in yield of Wheat .at Narullaganj, Sehore, Madhya Pradesh.

.

INDUSTRIAL PRODUCTS DIVISION:

 

Despite various constraints due to global recession during the second half of the financial year, Industrial Products Division achieved turnover of Rs. 7172.800 millions as against the sales turnover of Rs.7839.500 millions during the previous year. Ammonium Nitrate (Melt), Methanol, Methylamines and cone. Nitric Acid contributed significantly to the turnover.

 

EXPORTS:

 

During the year, the Company exported 1220'MT of Suphala 15:15:15 worth Rs 25.800 millions Considering the products line of the Company, scope for exporting and earning foreign exchange is very limited.

 

FUTURE PLANS OF FERTILIZER MARKETING:

 

The Company has plans to increase the sales of all fertilizers about 55 lakh MT in 2010-11. The Company is also exploring the possibility of increasing its presence in SSP market to increase turnover and profitability. The Company also intends to import and market complex fertilizers and develop customised/ fortified fertilizers like Boronated Suphala and Zincated urea, opportunity provided in Nutrient based subsidy.

 

THE FERTILIZER INDUSTRY:

 

Government of India has introduced a Nutrient Based Subsidy (NBS) in place of product wise subsidy effective from 1.4.2010. NBS implies that subsidy amount payable to the Company will be fixed annually for each nutrient of the products sold based on the nutrient content. The nutrient based subsidy so decided would be converted into subsidy per tonne for each subsidized fertilizer. In the initial phase only DAP; MOP, MAP, TSP, 12 grades of complex fertilizers, Ammonium Sulphate (Caprolactum Grade) and SSP are proposed to be covered. Urea is not part of NBS now. Any variant of these fertilizers with secondary and micro-nutrients as provided under FCO would also be eligible for subsidy.

 

The other major features of NBS are as follows:

 

The distribution and movement of these fertilizers would continue to be monitored through Fertilizer Monitoring System (FMS) like at present 20% of these fertilizers produced would be under movement control under the Essential Commodities Act 1955. The imports of these fertilizers are placed under OGL and subsidy would be admissible on all products as mentioned above except Ammonium Sulphate. Rail freight would be reimbursed on actuals whereas the primary road freight would be restricted to equivalent rail freight. Secondary road freight is not proposed to be reimbursed as a sum of Rs. 300 per MT is already built into the NBS. The NBS would be initially paid through the industry.

 

NEW PROJECTS:

 

ADDITIONAL AMMONIA / UREA PLANT AT THAI:

 

Considering the growing demand of nitrogenous fertilizers, a proposal for setting up an additional ammonia urea complex at Thai is under the consideration of the Department o1 Fertilizers (DOF). The Project, comprises setting up 1 x 2200 MTPD ammonia plant and 1 x 3500' MTPD Urea plant along with power generation, offsite, utilities and product handling facilities. Draft techno-economic feasibility report (TEFR) has been prepared by PDIL Further, pre-project activities are in hand. The estimated cost of the project is Rs. 44000.000 millions.

 

OTHER MAJOR PROJECTS:

 

The Company has taken up COM Nitric Acid Project for implementation and has registered the project with UNFCCC, the registering authority for CDM projects.

 

The Company is also working on several projects to add new products, augment production, increase efficiencies,

reduce environment emissions and reduce cost. Some of the projects conceived are Coal based chemicals, Port based logistic system etc.

 

The Company has been actively pursuing an opportunity to set up Joint Venture Companies in some Countries with abundance of raw materials like rock phosphate, phosphoric acid, ammonia etc.

 

A coal gasification based Fertilizer project is proposed at Talcher in Orissa wherein a consortium of GAIL, Coal India Limited and the company would execute the project. The project is in a preliminary stage of development.

 

SUBSIDIARY AND JOINT VENTURE COMPANIES:

 

RAJASTHAN RASHTRIYA CHEMICALS AND FERTILIZERS LIMITED, JAIPUR

 

The Joint Venture Company incorporated to undertake the project for manufacturing'850 MTPD of DAP has not • been 'functional as the partners are yet to take decision on investment in the project.

 

FACT-RCF BUILDING PRODUCTS LIMITED, KOCHI

 

The Company has formed a Joint Venture Company with Fertilizers and Chemicals Travancore Limited (FACT) by incorporating FACT-RCF Building Products Limited to set up a Rapidwall project at Kochi. Both RCF and FACT have 50:50 equity holding in the Company. The plant will use gypsum available with FACT to produce load bearing wall panels, wall plaster and wall putty through Rapidwall technology. The project is actively progressing. Civil jobs are in the final stages and mechanical erection of the plant is in advanced stage. The plant is expected to be commissioned in the first half of the current financial year.

 

URVARAK VIDESH LIMITED:

 

The JV Company is exploring the possibility of revival of old unit of HFCL at Barauni and has engaged PDIL for consultancy work for EIA and technology selection. The JV Company would decide further course of action based on feasibility of the project. The Company has been incorporated with an authorised capital of Rs 50.000 millions and has a paid up capital of Rs. 1.500 millions of which the Company's contribution is Rs 0.500 million.

 

RCF HM CONSTRUCTION SOLUTIONS PRIVATE LIMITED

 

The Company has incorporated a 50:50 Joint Venture Company with First Future Properties Private Limited for marketing the Rapidwall products with an authorised capital of Rs 50.000 millions and paid up capital of Rs 1.000 million which will be suitably increased as per business requirement. The Company has started the initial activity of seeding the market with the Rapidwall products manufactured by the Company.

 

FIXED ASSETS

 

v      Land (Freehold)

v      Land (Leasehold)

v      Roads and Culverts

v      Buildings

v      Railway sidings

v      Plant and Machinery

v      Water System, Sewerage and Drainage

v      Miscellaneous Equipments

v      Furniture, Fixtures and Office Appliances

v      Transport Vehicles

v      Assets held for disposal

 

INTANGIBLE ASSETS

 

v      Computer Software

 

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2011

                                                                                                                            (Rs. In millions)

 

 

 

Particulars

Figures for the 9

months ended

 

December 2010

Unaudited Results for Quarter ended 31.03.2011

Audited Results for Year ended

 

31.03.2011

1. Gross Sales

39353.300

16387.700

55741.000

Less: Excise

475.800

194.100

669.900

Net Sales / Income from operations

38877.500

16193.600

55071.100

2. Expenditure

 

 

 

a. Stock Adjustments

 

 

 

Opening Stock

1023.500

3773.800

1023.500

Closing Stock

3773.800

828.500

828.500

(Increase) / Decrease in stock

(2750.300)

2945.300

195.000

b. Consumption of raw materials & utilities

19257.300

6781.400

26038.700

c. Purchase of traded goods

10927.600

2145.100

13072.700

d. Employees Cost

3066.400

707.100

3773.500

e. Depreciation

805.700

320.500

1126.200

f. Other Expenditure

5692.400

2562.900

8255.300

g Total

36999.100

15462.300

52461.400

3. Profit from operations before Interest & Exceptional Items

1878.400

731.300

2609.700

4. Other Income

336.200

695.300

1031.500

5. Profit before Interest & Exceptional Items

2214.600

1426.600

3641.200

6. Net Interest Expenditure / (Income)

54.000

42.500

95.500

7. Profit after Interest but before Exceptional Items

2160.600

1384.100

3544.700

8 Exceptional Items

(0.600)

(1.600)

(2.200)

i. Prior Period Items expense/( income)

(0.600)

(1.600)

(2.200)

ii. Provision / (Reversal) of Impairment of Assets(Net)

0.000

0.000

0.000

9. Profit (+) / Loss (-) Before Tax

2161.200

1385.700

3546.900

10. Tax expenses

671.000

424.700

1095.700

11 Net Profit (+) / Loss (-) from Ordinary Activities After Tax

1490.200

961.000

2451.200

12. Extraordinary Items

0.000

0.000

0.000

13. Net Profit(+) / (Loss) for the Period

1490.200

961.000

2451.200

14. Paid up equity share capital (Face Value - Rs. 10/- each)

5516.900

5516.900

5516.900

15. Reserves excluding revaluation reserves

0.000

0.000

14600.400

16. a. Earnings per share (Rupees) (Before Extraordinary Item)

2.70

1.74

4.44

b. Earnings per share (Rupees) (After Extraordinary Item)

2.70

1.74

4.44

17. Public Shareholding

 

 

 

Number of shares

41373200

41373200

41373200

Percentage of shareholding

7.50

7.50

7.50

18. Promoters and promoter group Shareholding

 

 

 

a) Pledged/Encumbered

 

 

 

Number of Shares

NIL

NIL

NIL

Percentage of shares (as a % of the total shareholding of promoter and promoter group)

NIL

NIL

NIL

Percentage of shares (as a % of the total share capital of the company)

NIL

NIL

NIL

b) Non-encumbered

 

 

 

Number of Shares

510314900

510314900

510314900

Percentage of shares (as a % of the total shareholding of promoter and promoter group)

100

100

100

Percentage of shares (as a % of the total share capital of the company)

92.50

92.50

92.50

 

AUDITED SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE YEAR ENDED 31ST MARCH, 2011

 

Particulars

Unaudited Results for Quarter ended 31.03.2011

Audited Results for Year ended

31.03.2011

1. Segment Revenue

 

 

a. Trombay

5541.300

19599.600

b. Thal

5446.100

19827.100

c. Trading

5206.200

15644.400

d. Others

0.000

0.000

Total

16193.600

55071.100

Less: Inter Segment Revenue

0.000

0.000

Net Sales / Income From Operations

16193.600

55071.100

 

 

 

2. Segment Results

 

 

a. Trombay

684.500

1875.700

b. Thal

419.300

1241.200

c. Trading

48.800

239.600

d. Others

0.000

0.000

Total

1152.600

3356.500

Less: Net Interest Expenditure / (Income)

42.500

96.500

Other Net Unallocable Expenditure / (Income)

(275.600)

(286.900)

Total Profit/ (Loss) Before Tax

1385.700

3546.900

 

 

 

3. Capital Employed

 

 

a. Trombay

11632.300

11632.300

b. Thal

7467.200

7467.200

c. Trading

1095.400

1095.400

d. Others (unallocated)

6293.700

6293.700

Total

26488.600

26488.600

 

Notes:

1. The above results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting held on 10.05.2011.The Audited Accounts are subject to review by the Comptroller and Auditor General of India.

 

2. Provision for Current Income Tax is made in accordance with the Income Tax Act, 1961.

 

3. There were no investor complaints pending at the beginning of the quarter .Fifteen complaints were received during the quarter and were fully attended.

 

4. Company has capitalized the Rapid Wall Project at Trombay Unit at a cost of Rs.804.400 millions in current year.

 

5. Other expenditure is net of Exchange Variation (Gain) amounting to Rs.63.100 millions for quarter ended 31st March 2011 (P.Y. Exchange Gain of Rs.192.200 millions) and Rs.378.300 millions for the year ended as on 31st March 2011 (P.Y. Exchange Gain of Rs.1060.900 millions)

 

6. Board of Directors have recommended a dividend of Rs.1.10 per equity share of Rs.10/- each, i.e.11%

 

7. Tax Expenses for the year ended as on 31st March 2011 is net of tax adjustments pertaining to earlier year amounting to Rs.47.000 millions. (P.Y.Rs.23.900 millions)

 

8. Consequent upon communication received from GOI for buyback of Fertilizer Bonds Company has disposed off 50% of the Bonds amounting to Rs.3487.500 millions. As per the said communication Company is entitled to receive at least 50% of the loss incurred on such sale amounting to Rs.213.900 millions from GOI and accordingly this amount has been recognised as other income during the quarter.

 

9. During the year ended March 2011, as there is no material revenue streams in Subsidiary Company RRCFL and also JV Companies FRBL, UVL and RCF HM Construction Solution (Private) Limited no separate consolidated financial statement is published.

 

10. Company's CDM project in its Nitric Acid Plants at Trombay have been registered in UNFCC and it has been allotted 152013(Net) Certified Emission Reduction (CERs) or carbon Credits .Company is in the process of selling the same.

 

11. Previous Period's figures have been regrouped whereever necessary.

 

STATEMENT OF ASSETS AND LIABLITIES

 

Particulars

AS AT 31ST MARCH 2011 (AUDITED)

SHAREHOLDER'S FUNDS:

 

(a) Capital

5516.900

(b) Reserves and Surplus

14600.400

LOAN FUNDS

4816.200

Deferred Tax Liability (Net)

1555.100

TOTAL

26488.600

 

 

FIXED ASSETS

13732.700

INVESTMENTS

153.200

CURRENT ASSETS, LOANS AND ADVANCES

 

(a) Inventories

5347.500

(b) Sundry Debtors

8911.700

(c) Cash and Bank Balances

4192.500

(d) Other Current assets

3349.300

(e) Loans and Advances

1702.500

 

23503.500

Less: Current Liabilities and Provisions

 

(a) Liabilities

8469.200

(b) Provisions

2431.600

 

10900.800

 

 

TOTAL

26488.600

 

WEBSITE DETAILS:

 

BUSINESS DESCRIPTION:

 

Subject is an India-based company engaged in chemical manufacturing. The Company’s products include methanol, methylamines and derivatives, ammonium nitrate, sodium nitrate/nitrite, ammonium bi-carbonate and formic acid. The subsidiary of the Company is Rajasthan Subject During the fiscal year ended March 31, 2010 (fiscal 2010), the Company produced 1.19 lakh metric tons of various industrial chemical products. For the fiscal year ended 31 March 2010, Subject's revenues decreased 31% to RS58.22B. Net income increased 11% to RS2.34B. Revenues reflect a decrease in the income from Trombay segment, lower income from Thal division and a significant fall in Trading segment segments. Net income reflects a decrease in consumption of raw materials, lower employee cost and a decrease in other expenditure.

 

Manufacture of nitrogenous fertilisers, urea and industrial chemicals including methanol, ammonium bi-carbonate, sodium nitrate, sodium nitrite, methylamines, dimethyl formamide and dimethyl acetamide.

 

BOARD OF DIRECTORS:

 

Manoj Priya

Whole Time Director - Technical, Director

Shri. Manoj Priya is Whole Time Director - Technical, Director of Subject, since December 30, 2008. Shri Manoj Priya, was appointed by the Government as Whole Time Director [Technical] of the Company w.e.f. 30.12.2008. Prior to joining as Director (Technical) he was Executive Director (Projects and Commercial). Shri Manoj Priya has experience of almost 34 years in Fertilizer Industry. He did his B.E, in Mechanical Engineering from BIT Sindri and MBA from University of Lyublijana. He joined FCI in December 1974 at Gorakhpur Unit as Jr. Executive Trainee and was posted at Trombay in August 1975. He has worked in various projects such as Trombay IV, Trombay V and the grass root projects at Thai from construction to commissioning stage. In addition to operation and maintenance of plants, he has experience of commercial activities, joint ventures, international contracts. Before being elevated he was the Executive Director (P and C) looking after all projects, imports, purchase, shipments, stores, railway operations, MES/ PHS. He is a member of the Board's Management Committee and Audit Committee.

 

V. Rajagopalan

Non-Executive Director - Government Nominee

 

Dr. V. Rajagopalan is Non-Executive Director - Government Nominee of Rashtriya Chemicals and Fertilisers Limited, since May 3, 2010. He has been Addi. Secretary and Financial Adviser, Department of Fertilizers, New Delhi.

 

Gautam Sen

Whole Time Director - Finance, Director

 

Shri. Gautam Sen serves as Whole Time Director - Finance, Director of Rashtriya Chemicals and Fertilisers Limited Shri Gautam Sen, was appointed by the Government as Whole Time Director [Finance] of the Company w.e.f. 14.7.2008. Shri Sen is M. Com., Chartered Accountant and Cost Accountant. Shri Sen has experience in Finance and Accounts discipline in private and public sector organisations. Prior to his joining the Company, he was working with M/s Bharat Earth Movers Limited [BEML], Bangalore, as Executive Director [finance]. Before joining BEML, Shri Sen had worked for a period of 12 years with M/s GSFC Limited, Baroda, where he worked as Executive Director [Finance] for the last 3 years.

 

Deepak Singhal

Non-Executive Director - Government Nominee

 

Shri. Deepak Singhal serves as Non-Executive Director - Government Nominee of Rashtriya Chemicals and Fertilisers Limited

 

PRESS RELEASES:

 

NIFTY GARNERS DECENT GAINS; REGAIN 5,450 LEVEL

 

20 May 2011

 

India, May 20 -- The local benchmark, Nifty has garnered decent gains of over a percent on Friday. Moreover, market traded superbly throughout the session and ended comfortably over its crucial 5,450 mark. Earlier, the local index made a decent start extended its gains in early trade tracking positive cues from across the globe and good earnings report on domestic front. Trade remained firm till late morning led by sustained buying witnessed in most of the key heavyweights and broader indices too witnessed a strong grip in the trade. Moreover, PSU oil marketing companies viz, BPCL, HPCL and IOC gained in the range of 0.50-1.50 percent as crude oil prices declined below $100 per barrel while, Fertilizers stocks like Chambal Fertilisers and Chemicals, National Fertilizers and Rashtriya Chemicals and Fertilizers surged in the range 0.50-2.50 percent on report that fertiliser companies may be allowed to hike maximum retail prices of DAP by over Rs.600 per tonne. Afterwards, market pared some of its gains in early noon trade as many Asian markets reversed their initial gains while, reports of hike in subsidy burden for upstream companies by the Government too weighed the sentiments. Upstream companies like ONGC, OIL and GAIL slipped as they will have to pay around Rs.248920.000 millions, Rs.32930.000 millions and Rs.21110.000 millions, respectively of the total subsidy burden of 780000.000 millions. Afterwards, market again started its northward journey and crossed its crucial 5,500 mark for a while in the mid afternoon trade, but profit booking during the last leg of the day dragged the index below 5,500 mark after FMCG major ITC reported flattish quarterly earnings and IRB Infra too disappointed the street. Finally, Nifty snapped the day's trade with a gain of over a percent. On the global front, the US markets extended their gains on Thursday supported by decline in crude oil prices, while Asian equity indices finished the day's trade on a mixed note. However, all the European counterparts were trading in the positive terrain at this point of time. Back home, broad based buying supported all sectoral indices on the NSE to settle in the positive territory with CNX Infra surged the most, ending with a gain of over two percent followed by Bank Nifty, CNX Infra and CNX Realty. The India Volatility Index (VIX), a gauge for market's short term expectation of volatility, declined 4.70% and reached 19.45, while S and P Nifty moved higher by 58.25 points to close at 5,486.35. The markets registered volumes of over Rs.1.58 lakh crore which remained on the higher side compared to Thursday. The India VIX was down by 4.70% at 19.45 on Friday as compared to its previous close of 20.41 on Thursday. The 50-share S and P CNX Nifty gained 58.25 points or 1.07% settled at 5,486.35.Nifty May 2011 futures closed at 5,479.00, at a discount of 7.35 points over spot closing of 5,486.35, while Nifty June 2011 futures were at 5,487.70 at a premium of 1.35 points over spot closing. The near month May 2011 derivatives contract expires on Thursday, May 26, 2011. Nifty May futures saw addition of 5.28% or 1.34 million (mn) units, taking the total outstanding open interest (OI) to 26.78 mn units. From the most active underlying, L and T May 2011 futures closed at a premium of 2.00 points at 1658.00 compared with spot closing of 1656.00. The number of contracts traded was 41,794.ITC May 2011 futures were at a discount of 0.60 point at 186.10 compared with spot closing of 186.70. The number of contracts traded was 21,577.SBI's May 2011 futures were at a premium of 5.80 points at 2323.80 compared with spot closing of 2318.00. The number of contracts traded was 26,511.Tata Steel May 2011 futures were at a premium of 0.35 points at 580.35 compared with spot closing of 580.00. The number of contracts traded was 18,979.Tata Motors May 2011 futures were at a premium of 1.75 points at 1166.50 compared with spot closing of 1164.75. The number of contracts traded was 17,175.For Nifty calls, 5500 strike price (SP) from the May series was the most active call with a contraction of 1.17 million or 14.58%.Among Nifty puts, 5400 SP from the May month expiry was the most active put with an addition of 0.76 million or 9.56%.The maximum Call OI outstanding was at 5500 SP (6.85) and that for Puts at 5400 SP (8.72). The respective Support and Resistance levels are: Resistance 5525.01-- Pivot Point 5478.88-- Support 5440.21.The Nifty Put Call Ratio (PCR) OI wise stood at 0.74 for May-month contracts. The top five scrips with highest PCR on OI were BRFL 1.64, Ranbaxy 1.45, Grasim 1.38, Hero Honda 1.36 and Mphasis 1.25.Among most active underlying L and T witnessed a contraction of 2.11% in the May month futures contract, followed by SBI which too saw decline of 0.78% of Open Interest (OI) in the near month contract. Meanwhile, ITC witnessed an addition of 50.61% in this month futures coupled with Tata Steel which added 0.53% in the May month future contract. Lastly, Reliance Industries (RIL) too saw a contraction of 0.67% in its OI in the May month futures contract Published by HT Syndication with permission from Accord Fintech.

 

FRONTLINE INDICES CONTINUE TO MOVE SIDEWAYS IN A TIGHT RANGE; L AND T RESULTS EYED

 

19 May 2011

 

India, May 19 -- Indian equity indices have extended the listless performance in the afternoon session as the indices are moving only in the sideways direction around previous closing levels. Though the benchmarks have traded above the neutral line for most part of the session, yet there are little signs of a bounce back as cautious investors are hesitant to open long positions ahead of the earnings announcement of the flag bearer of capital goods industry Larsen and Toubro amid growing uncertainties over the stability of local markets. Buying was largely seen in the badly slaughtered Oil and Gas stocks which shaved off around a massive 5% points in last two sessions on fears that government will raise prices of other petroleum products soon. The information technology majors like TCS and Infosys, and FMCG bellwethers like ITC and HUL too are preventing the benchmarks from drifting into the red territory while the index heavyweight Reliance Industries had made its presence felt after surging over a percent point. Moreover, fertilizer stocks like Rashtriya Chemicals and Fertilizers, National Fertilizers, Nagarjuna fertilisers and FACT spurted on emergence of reports that fertiliser companies may be allowed to hike maximum retail prices of Di-ammonium phosphate (DAP) by over Rs.600 per tonne as the fertiliser ministry is planning to move a Cabinet proposal in this regard. However, the high beta realty counter is witnessing another forgettable session languishing at the bottom of the BSE sectoral space as like DLF and HDIL have shrunk by 1.63% and 2.44% respectively. Meanwhile, leads from the Asian markets remained mixed while the European counterparts on the other hand have gone on to begin their session on a sanguine note with smart gains. Back home, the broader markets failed to keep their heads above the water and�are trading in the negative terrain, underperforming their larger peers by quite a margin. The midcap index eased 0.44% and the smallcap index fell 0.27% points. The market breadth on the BSE was in favor of declines in the ratio of 1025:1405 while 131 scrips remained unchanged. The BSE Sensex added 38.31 points or 0.21% at 18,124.51. The index touched a high and a low of 18,198.45 and 18,057.82 respectively. The BSE Mid-cap index shed 0.44% and Small-cap index fell 0.27%.On the BSE sectoral front, Oil and Gas up 1.06%, FMCG up 0.53%, IT up 0.52%, Teck up 0.36% and PSU up 0.19% were the major gainers. While, Realty down 1.51%, Power down 0.62%, Capital Goods down 0.58%, Healthcare down 0.48% and Metal down 0.24% were the major laggards in the BSE sectoral space. The top gainers on the Sensex were TCS up 1.38%, RIL up 1.35%, M and M up 1.18%, Bajaj Auto up 0.93% and ITC up 0.90%.On the flip side R Com down 2.26%, Tata Power down 2.06%, Hero Honda down 1.99%, DLF down 1.74% and R Infra down 1.18% were the major losers on the index. Meanwhile, the India - ASEAN free trade agreement (FTA), which is currently restricted to trading in goods only, is expected to widen its scope as negotiations for a similar agreement for services are currently under way. According to Federation of Indian Chambers of Commerce and Industry (FICCI) - Deloitte White Paper, the FTA is likely to open up a range of business avenues and projects for the Indian companies and strengthen the trade dependence between India and ASEAN. The White Paper underscored that opportunity in construction sector are enormous for Indian companies and they can seriously pursue opportunities in the construction related activities such as construction of bridges, canals, roads, school buildings, sports facilities and water-treatment plants. The paper also highlights that Asean countries would also provide considerable business avenues in machinery, equipment, appliances apparatus and associated products, office equipment, computers and supplies, instruments and appliances, industrial process control equipment, optical instruments, and horological instruments industry/services categories. India also stands to gain in sectors such as medical supplies, telecommunication, radio, television and communication equipment, textiles, handicrafts and chemicals from its trade with the Asean economies. Moreover, optimum gains of the FTA, which was signed on August 13, 2009, and came into effect from January 1, 2011, can only be realized when the trade agreement gets ratified by all the ten members of the Asean. So far, only eight nations viz., Singapore, Indonesia, Malaysia, Vietnam, Brunei Darussalam, Laos, Thailand and Myanmar have ratified the agreement. Though Cambodia and Philippines are yet to ratify the deal, both have indicated that they would implement their deal in the next of couple of months. The India ASEAN FTA which was signed in Bangkok with Malaysia, Thailand and Singapore, is expected to be in place with all member countries by 2016. The FTA collectively covers a market of nearly 1.8 billion people and proposes to gradually slash tariffs for over 4,000 product lines. The trade between the two stood at about $44 billion in 2009-10. The S and P CNX Nifty added 6.75 points or 0.12% at 5,427.35. The index touched high and low of 5,452.60 and 5,411.25, respectively. The top gainers on the Nifty were GAIL up 2.90%, IDFC up 2.44%, Reliance up 1.28%, TCS up 1.12% and M and M up 1.01%.On the other hand, Hero Honda down 2.27%, Grasim down 2.19%, Tata Power down 2.14%, R Com down 2.09% and DLF down 1.91% were the major losers on the index. On the Asian front, Hang Seng up 0.51%, Jakarta Composite added 0.49%, KLSE Composite rose 0.22% and Straits Times surged 0.90%. On the other hand, Shanghai Composite declined 0.41%, Nikkei 225 fell 0.43%, Seoul Composite plummeted 1.89% and Taiwan Weighted shaved off 0.58%.The European markets have opened an optimistic note as the France's CAC 40 gained 0.65%, Germany's DAX amassed 0.64% and London's FTSE 100 jumped 0.93%. Published by HT Syndication with permission from Accord Fintech.

 

MARKETS MOVE DOWN FURTHER AHEAD OF F and O EXPIRY AND WORRIES OF INFLATION

 

28 April 2011

 

India, April 28 -- Key benchmark indices are treading in rough waters due to selling pressure ahead of derivatives expiry. Also, inflation concerns are weighing on the investor's sentiments as weekly food and fuel inflation data is due later in the day which could set the tone for the central bank's rate hike decision. On the global front, while most of the Asian markets are trading in the green; US index futures are showing an up-tick in screen trade at this point of time. Back home, on the sectoral front, realty counter was leading the losses followed by power, capital goods, information technology and metal segments; while consumer durables, auto, healthcare and public sector undertakings were helping the markets from further slide. Broader markets are trading mixed; the BSE Mid cap index has lost 0.12%; while BSE Small cap index gained 0.06%. The market breadth on the BSE was negative; the losers thrashed the gainers in a ratio 1352:1096 and 124 shares were unchanged. Meanwhile, stocks of fertilizer companies went up on the report that Indian government is likely to hike the subsidy it gives in phosphatic and potassic (P and K) fertilizers. The Cabinet Committee on Economic Affairs (CCEA) will be raising the import parity prices of di-ammonium phosphate (DAP) and muriate of potash (MOP), based on which the quantum of subsidy for P and K fertilisers is determined. National Fertilizers was up by 4.61%, Nagarjuna Fertilizers and Chemicals was up by 2.23%, Chambal Fertilisers and Chemicals was up by 1.45% and Rashtriya Chemicals and Fertilizers was up by 2.56% etc. The BSE Sensex shed 47.72 points or 0.25% at 19,400.97. The index has touched a high of 19,542.05 and a low of 19,360.61 respectively. The BSE Mid cap index lost 0.12%; while BSE Small cap index gained 0.06%. The top losers on the BSE sectoral space were Realty down 2.10%, Power down 0.45%, Capital Goods (CG) down 0.39%, Information Technology (IT) down 0.36% and Metal down 0.28%. On the flip side, Consumer Durables (CD) up 0.26%, Auto up 0.23%, Healthcare (HC) up 0.13% and Public Sector Undertakings (PSU) up 0.09% were the only gainers on the BSE sectoral space. The top gainers of the Sensex were Bajaj Auto up 1.21%, ONGC up 1.20%, Bharti Airtel up 0.83%, Sterlite Inds up 0.52% and Hindalco Inds up 0.45%. On the flip side, BHEL down 2.04%, RCom down 1.81%, DLF down 1.58%, Jindal Steel down 1.47% and Rel Infra down 1.32% were the major losers on the index. A Committee of Secretaries (CoS) set up by the government of India which is looking into the issue of how to price natural resources including spectrum, has said in a draft report that telecom spectrum was a scarce natural resource and it must be auctioned in order to discover its true market price. The mandate of the committee was to develop a framework for transparent and just pricing of natural resources. It has already prepared a draft report and a final report is likely to be submitted to the Cabinet soon. The committee was set up following the controversy of government allocating the 2G spectrum in 2008 at throwaway prices. It will however look at broader contour of all the natural resources including oil and gas and other minerals. In its recommendations regarding the telecom spectrum, the committee has also agreed with the view of ministry of communications regarding delinking spectrum from license. The committee feels that while the license was a contract allowing a particular entity to conduct a particular business, spectrum was a natural resource and must be provided separately against a market based price. By providing spectrum with license, the government might be under-pricing the spectrum. Finally, the committee is also in favour of allowing spectrum trading by telecom operators as has been argued by the telecom regulatory authority of India (TRAI). The department of telecommunications (DoT) is in the process of finalizing regulations for spectrum trading. The committee feels that by allowing trading, most efficient use of the resources can be achieved while at the same time ensuring that government gets a reasonable price in auction of spectrum. The 2G license controversy has forced the government to bring a streamline policy for allocating natural resources. In fact many political analysts feel that not just telecom spectrum but allocation of all other natural resources has been rather opaque in India for long and it was time for some rule based play to be implemented. This is the reason that the CoS has been given a wider mandate to recommend efficient and transparent ways for allocating all natural resources and not just the spectrum. The S and P CNX Nifty slipped 10.80 points or 0.19% at 5823.10. The index has touched a high and a low of 5856.40 and 5805.85, respectively. The top gainers of the Nifty were Ambuja Cement up 2.05%, Bajaj Auto up 1.29%, ONGC up 1.22%, Sesa Goa up 0.83% and Sun Pharma up 0.82% On the flip side, SAIL down 2.45%, BHEL down 1.81%, RCom down 1.81%, Cairn India down 1.77% and Jindal Steel down 1.71% were the major losers on the index. Rest of the Asian markets were trading mostly in the green. Hang Seng advanced 0.42%, Jakarta Composite gained 0.05%, KLSE Composite rose 0.23%, Nikkei 225 surged 1.44%, Straits Times soared 0.50% and Seoul Composite rose 0.11%; while Shanghai Composite dropped 0.66% and Taiwan Weighted shed 0.09%. Published by HT Syndication with permission from Accord Fintech.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]             INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]             Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]             Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]             Record on Financial Crime :

               Charges or conviction registered against subject:                                                                   None

 

5]             Records on Violation of Anti-Corruption Laws :

               Charges or investigation registered against subject:                                                                None

 

6]             Records on Int’l Anti-Money Laundering Laws/Standards :

               Charges or investigation registered against subject:                                                                None

 

7]             Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]             Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]             Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]           Press Report :

               No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.42

UK Pound

1

Rs.72.70

Euro

1

Rs.63.55

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

9

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--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

 

67

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.