MIRA INFORM REPORT

 

 

Report Date :

08.01.2011

 

IDENTIFICATION DETAILS

 

Name :

RASHTRIYA CHEMICALS AND FERTILIZERS LIMITED

 

 

Registered Office :

“Priyadarshani”, 10th Floor, 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.:

11-20185

 

 

CIN No.:

[Company Identification No.]

L24110MH1978GOI020185

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMRO953E

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

 

 

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 73000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a government of India company. It is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for 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

 

 

INFORMATION DENIED BY

 

Name :

Ms. Desai

Designation :

Manager

Date :

06.01.2011

 

 

LOCATIONS

 

Registered Office/ Corporate Office :

“Priyadarshini”, 10th Floor, 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 :

cmdrcf@bom3.vsnl.net.in 

kcprakash@rcfltd.com   

company_secretarial@rcfltd.com

investorcommunications@rcfltd.com

Website :

http://www.rcfltd.com

 

 

Manufacturing Complexes At:

Mahul Road, Trombay, Mumbai – 400 071, Maharashtra, India and at Alibaug, Thal, Alibaug District, Maharashtra, India

 

 

Marketing Offices/ Administrative Offices: :

5th Floor, Pushpak Building, Ahmadabad – 380001, Gujarat, India

 

Also Located At :

·         Andhra Pradesh

·         Chhatisgarh

·         Madhya Pradesh

·         Tamilnadu

·         West Bengal

·         Bihar

·         Delhi Punjab Harayana HP and Chandigarh

·         Karnataka

·         Maharashtra

·         Uttar Pradesh

·         Uttaranchal

 

 

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.:

91-11-2685 1419 (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.: 91-22-2558 3981 (Office) / 2555 1242 (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. R. G. Rajan

Designation :

Chairman and Managing Director

 

 

Name :

Mr. J. Kohareswaran

Designation :

Director (Marketing)

 

 

Name :

Mr. Gautam Sen

Designation :

Director (Finance)

 

 

Name :

Mr. Manoj Priya

Designation :

Director (Technical from 30.12.2008)

 

 

Name :

Mr. Mathew C. Kunnumkal, IAS

Designation :

Additional Secretary and Financial Advisor Department of Fertilizers, New Delhi

 

 

Name :

Mr. Deepak Singhal, IAS

Designation :

Jt. 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 :

Mr. H.S. Karangle

Designation :

Director (Technical) (upto 31.10.2008)

 

 

Name :

Dr. V. Rajagopalan

Designation :

Director

 

 

Name :

Mr. Sham Lal Goyal

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Kailash Chandra Naredi, IRS

Designation :

Chief Vigilance Officer

 

 

Name :

Mr. R. K. Jain

Designation :

Executive Director (Trombay)

 

 

Name :

Mr. M. Singh

Designation :

Executive Director (Thal)

 

 

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. K.L. Bhatia

Designation :

Chief General Manager (complex and Acids)

 

 

Name :

Mr. P.S. Bhatia

Designation :

Chief General Manager (Nitrogen)

 

 

Name :

Mr. Kumar Gupta

Designation :

Chief General Manager (Projects)

 

 

Name :

Mr. Babu Ram

Designation :

Chief General Manager (IPD)

 

 

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. S.V. Ganu

Designation :

Chief General Manager (C)

 

 

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. Prakaashh T. Desai

Designation :

General Manager (A and CC)

 

 

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)

 

 

Name :

Ms. Desai

Designation :

Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2010

 

Names 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

21,300

-

Financial Institutions / Banks

1,050,118

0.19

Insurance Companies

7,190,725

1.30

Foreign Institutional Investors

727,170

0.13

Sub Total

8,989,313

1.63

(2) Non-Institutions

 

 

Bodies Corporate

6,196,507

1.12

Individuals

 

 

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

21,020,941

3.81

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

3,043,433

0.55

Any Others (Specify)

2,123,006

0.38

Clearing Members

1,096,933

0.20

Non Resident Indians

1,009,373

0.18

Overseas Corporate Bodies

900

-

Trusts

15,800

-

Sub Total

32,383,887

5.87

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

-

-

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 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

50 (approximately)

 

 

Bankers :
  • State Bank of India, Swastik Chamber, Chembur, Mumbai-400071, Maharashtra, India.
  • State Bank of Hyderabad
  • State Bank of Bikaner and Jaipur
  • Syndicate Bank
  • New Delhi Cooperative Bank Limited
  • Kotak Mahindra Bank
  • ICICI Bank Limited

 

 

Facilities :

SECURED LOANS

31.03.2010 (Rs. In Millions)

31.03.2009 (Rs. in millions)

Term Loan from Banks

 

 

1. Rupee Loan from Banks

 

 

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

A term loan facility of Rs.1000.000 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.1000.000 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 million 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 Argon Recovery Plant at Thal and pari passu first charge basis on the project asset of Rapidwall Plant at Trombay.

(Amount 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.175.000 millions P.Y. Rs. NIL )

700.000

0.000

Loan from New India Co-operative Bank Limited : A loan of Rs.240.000 millions sanctioned by and availed from New India Co-operative Bank is secured by first pari passu charge by way of hypothecation of all movable 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. 53.300 millions P.Y. Rs. 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 movable 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.NIL)

650.000

0.000

2. Foreign Currency Loan l External Commercial Borrowings

 

 

a. Loan from ICICI Bank Limited  (ADB)

A term loan of USD 5.50 million

availed by the company during 2004-05 was secured by hypothecation of all tangible movable Machinery and Plant required for upgradation 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 and 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)

124.000

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 Rapidwall 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

31.03.2010 (Rs. In Millions)

31.03.2009 (Rs. in millions)

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 :

Statutory Auditors:

 

  • JCR  and Company

      Chartered Accountants

      Address : Mumbai

 

  • S. Mohan and Company

       Chartered Accountants

       Address : Ahmedabad

 

  • Batliboi and Purohit

      Chartered Accountants

      Address : Mumbai

 

  • K S Aiyar and Company

      Chartered Accountants

             Address : Mumbai

 

  • Anil Agarwal

Chartered Accountant

Address : New Delhi

 

 

Joint Ventures:
  • Fact-RCF Building Product Limited
  • Urvarak Videsh Limited
  • RCF-HM Construction Solutions Private Limited

 

 

Subsidiaries :
  • Rajasthan Rashtriya Chemicals and Fertilizers Limited

 

 

 

 

 

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

800000000

Equity Share

Rs.10/- Each

Rs. 8000.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

551688100

Equity Share

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

11410.900

 

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

22872.400

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors                                 

4006.700

12191.000

 

 

Other Current Liabilities
9228.100
4285.100

5929.100

 

Provisions
2228.400
2743.900

2758.900

Total Current Liabilities
15463.200
19220.000

8688.000

Net Current Assets
19336.600
18963.700

14184.400

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

06.200

15.300

 

 

 

 

TOTAL

33317.200

32459.800

29484.800

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Sales Turnover

27101.000

30556.400

26290.200

 

 

Subsidy on Fertilizers

29320.100

53103.400

25112.500

 

 

Interest

506.800

357.900

69.300

 

 

Other Income

1290.700

831.100

806.800

 

 

TOTAL                                     (A)

58218.600

84848.800

52278.800

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchase of Bought out Products

18460.900

27404.100

12843.900

 

 

Material Consumed

17124.400

19738.600

13936.500

 

 

Salaries, Wages, Bonus, etc.

3586.500

3822.100

2294.000

 

 

Power & Fuel

5521.200

13690.300

12979.200

 

 

Freight and Handling charges

5291.300

5734.000

5083.600

 

 

Excise Duty

1.800

(4.100)

(3.400)

 

 

Repairs and Maintenance

733.600

698.800

762.600

 

 

Other Expenditure

1057.800

4804.800

1872.000

 

 

(Accretion) / Decretion to stocks

924.300

3847.500

(1299.500)

 

 

Research and Development

23.300

16.700

12.300

 

 

Provision / (Reversal) of Impairment of Assets

(299.600)

(0.500)

37.800

 

 

Provision For Doubtful Debts/Claims/Advances

52.100

9.800

10.300

 

 

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

0.100

80.100

0.000

 

 

Provision for obsolescence of stores and spares

13.600

16.500

6.100

 

 

Bad Debts Written off

617.500

5.400

1.100

 

 

Adjustment relating to prior years Debit (-) / Credit (Net)

0.200

0.100

(40.400)

 

 

Less: Transfer Credit

93.600

245.900

132.300

 

 

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                                                                  (I)

1093.400

1141.200

839.200

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

2348.700

2115.800

1581.500

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

1641.000

1341.300

NA

 

 

Proposed Dividend

606.900

662.000

NA

 

 

Tax on Dividend Proposed

100.800

112.500

NA

 

BALANCE CARRIED TO THE B/S

0.000

0.000

0.000

 

 

 

 

 

 

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

0.200

0.000

0.000

 

TOTAL EARNINGS

26.000

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

2195.7

7793.700

2762.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

4.26

3.84

NA

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

30.06.2010 (1st Quarter)

30.09.2010 (2nd Quarter)

Net Sales

 

7913.400

15628.600

Total Expenditure

 

7486.300

14474.200

PBIDT (Excl OI)

 

427.100

1154.400

Other Income

 

110.600

91.300

Operating Profit

 

537.700

1245.700

Interest

 

(12.400)

67.500

Exceptional Items

 

1.700

(1.100)

PBDT

 

551.800

1177.100

Depreciation

 

255.600

265.500

Profit Before Tax

 

296.200

911.600

Tax

 

98.400

302.800

Profit After Tax

 

197.800

608.800

Net Profit

 

197.800

608.800

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
6.65

7.24

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.19
0.19

0.04

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.57
2.07

1.37

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.25
1.97

2.63

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

The details of sundry creditors:

Rs. In Millions

Particulars

31.03.2010

31.03.2009

31.03.2008

Sundry creditors on capital account

 

 

 

Dues to micro, small and medium enterprises

-

-

NA

Others

324.000

316.500

NA

Dues to micro, small and medium enterprises

-

-

NA

Others

3682.700

11874.500

NA

Total

4006.700

12191.000

NA

 

 

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 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 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 millions. The Techno-economic Feasibility of Methylamine for expansion is under preparation. The total cost for the expansion is estimated to be Rs.250 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 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 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 millions.

 

 

Highlights for the year 2009-2010:

The Company achieved a turnover 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 feedstock of Naphtha 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 cost 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 2.596 million MT of fertilizers (Urea-2.089 million MT, Suphala15:15:15- 0.490 million MT and Suphala 20:20-0.017 million MT) during the year as against 2.375 million MT (Urea -1.904 million MT and Suphala15:15:15-0.471 million 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 1.038 million MT of Nitrogen (N), 0.077 million MT of Phosphate (P2O5) and 0.074 million MT of Potassium (K2O) during the year as compared to 0.946 million MT of N, 0.071 million MT of P2O5 and 0.071 million MT of K2O during the previous year.

 

 

The performances of the units are given below:

 

Thal Unit:

 

Thal unit produced 1.782 million MT of Urea during the year compared to 1.904 million 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 1.128 million MT of Ammonia compared to 1.097 million MT during previous year. The Thal 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 Thal. The energy consumption per MT of Urea was 6.297 Gcal/ MT (6.472 Gcal in the previous year). In terms of nutrients in the fertilizers, the unit produced 0.820 million MT of N during the year compared to 0.876 million MT during the previous year.

 

Thal unit of the company was bestowed with 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 05.07.2009.

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 0.307 million MT of Urea, 0.490 million MT of Suphala 15:15:15 and 0.017 million MT of ANP during the year under report compared to 0.471 million 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, your 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 0.218 million MT of N during the year (previous year 0.071 million MT), and produced 0.077 million MT P2O5 (previous year 0.071 million MT) and 0.074 million MT K2O (previous year 0.071 million 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  n  the  country producing several Industrial Chemicals at the two units. During the year, the  Company  produced 0.119 million MT of various major  Industrial  Chemical products  compared to 0.130 million 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 4.073 million MT during 2009-10 as compared to 4.833 million MT in the previous year. The Company sold 2.862 million MT of Urea, 0.487 million MT of Suphala 15:15:15, and 0.016 million MT of Suphala 20:20 and 0.708 million MT of other bought out products such as DAP, MOP, etc. compared to 36.64 million MT of Urea, 0.503 million MT of Suphala 15:15:15, and 0.666 million 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 2.599 million MT as against 2.517 million 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 million compared to Rs.12319.800 million in the previous year.

 

The total sale during the year was lower by 0.760 million 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 million compared to the previous year figure of Rs.11290.500 million.

 

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 under report, 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 5.500 millions 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.

 

The Company welcomes the move which is a step in the direction of decontrol. As per the scheme, a unit is aware before hand of its concession even before the year commences and will enable the unit to draw-up its production strategy. The Companies can negotiate with the suppliers of raw materials for better prices by offering long term contracts and by bringing P and K fertilizers under Open General Licence (OGL), it is ensured that there would be healthy competition. The Company can import fertilizers whenever it’s cost of production is not viable compared to the realization and thereby maintain its presence in the market. NBS will also encourage units to develop customized fertilizers.

 

The Company feels that there is an opportunity in this challenge.

 

On going Projects:

The following projects are in progress/completed during the year:

 

Re-vamp of Methanol Plant:

Phase-I Methanol plant has been revamped to achieve a production of 220 MTPD from the existing 172 MTPD and to reduce energy consumption from 9.094 to 7.9632 MKCal/MT. The project has been completed at a cost of Rs.1170.400 millions and is giving desired result. The phase-II of the re-vamp is scheduled to complete by end of second quarter of this year. The production after re-vamp phase-II would be 240 MTPD.

 
 
 

Rapid wall Project-Trombay:

 

This Project has been set up at an estimated cost of Rs. 750.000 millions for utilizing phospho-gypsum produced as by-product in Trombay for manufacturing, environmental friendly, load-bearing, low cost pre-Fabricated and glass-fibre reinforced building walls and other products with wide construction applications. M/s. Rapidwall Building Systems Pty. Limited, Australia has supplied technology for setting up manufacturing facility at Trombay. The plant will produce 1.40 million Sq meters of wall panels, 40,000 MT of wall plaster and 6,000 MT of wall putty. Trial runs have been carried out and about 400 wall panels have been manufactured which are being tested/ certified for its quality/acceptance/positioning in the market. The process is expected to stabilise and full scale production is likely to start during first half of financial year 2010-11.

 

Ammonium Nitro Phosphate Granulation Project-Trombay:

 

The Company has installed a Ammonium NitroPhosphate granulation plant of 900 MT per day capacity by using the slurry prepared in the wet section (Front end). The plant has been commissioned at a cost of Rs.750.800 millions to manufacture complex fertilizer Suphala 20:20. It is also proposed to revamp wet part section to improve nutrient and energy efficiency.

 

 

De-bottlenecking of Thal Plants:

The Company has envisaged de-bottlenecking of Thal Ammonia Plant and Urea Plants in order to produce 2 X 1750 MTPD of ammonia and 3 X 2030 MTPD of urea. The estimated cost for the scheme is Rs.4887.500 millions. Project work has been started and is likely to be commissioned in March 2011. On commissioning, the capacity of Urea plant is likely to go upto 20 lakh MT per annum, apart from being more energy efficient.

 

 

New Projects:

 

Additional Ammonia / Urea Project:

 

Considering the growing demand of nitrogenous fertilizers, a proposal for setting up an additional ammonia urea complex at Thal is under the consideration of the Department of 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 is likely  to  register  the  project in the  near  future  with  UNFCCC,  the registering authority for COM 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:

 

Your 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 authorized 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 millions

 

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 millions 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.

 

RESEARCH AND DEVELOPMENT:

 

The   Company has taken up several Research and Development projects, some of  which,  taken up for commercial scale design and  engineering,  are  as under:

 
 

FIXED ASSETS

 

·         Land (Freehold)

·         Land (Leasehold)

·         Roads and Culverts

·         Buildings

·         Railway sidings

·         Plant and Machinery

·         Water System, Sewerage and Drainage

·         Miscellaneous Equipments

·         Furniture, Fixtures and Office Appliances

·         Transport Vehicles

·         Computer Software

 

As Per Web Details:

 

Chairman and Managing Director

Shri R.G. Rajan has taken over charge as Chairman and Managing Director of Rashtriya Chemicals and Fertilizers Limited. on 03.11.2010. Prior to this appointment, Rajan was Chairman and Managing Director of Projects and Development India Limited (PDIL), Noida.


Shri R.G. Rajan is a graduate in Chemical Engineering from Institute of Technology, Banaras Hindu University. He has also done MBA from Strathclyde Business School, Glasgow, U.K. He has more than 29 years of experience in the field of Conceptual Design, Process Design and Project Management. Areas of expertise include Gas Pipelines, LPG Pipelines, Gas Processing Plants, Petro-chemicals.

 

He started his career with Engineers India Limited where he worked for 5 years. For the next 21 years he has served GAIL (India) Limited. New Delhi where he rose to the position of Executive Director (Project Development) prior to taking up the position of Chairman and Managing Director, Projects and Development India Limited, Noida on 08.01.2007.

 
He is a Six Sigma Black Belt holder and an Energy Auditor, accredited by Bureau of Energy Efficiency. He has to his credit several articles in reputed national journal

 

 

Director (Finance)

 

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

 

Director (Technical)

 

Shri. Manoj Priya has taken over as Director (Technical) w.e.f. 30th December 2008.  Prior to joining as Director (Technical) he was Executive Director (Projects and Commercial). He is having an experience of almost 34 years in Fertilizer Industry. He did his B.E. in Mechanical Engineering from BIT Sindri, joined FCI in December 1974 at Gorakhpur Unit as Jr. Executive Trainee and posted at Trombay in August 1975.  He has worked in various projects from construction to commissioning at Trombay IV, Trombay V and the grass-root projects at Thal. He has worked in maintenance and operations of various plants at Thal and Trombay Unit. In 1994 he obtained his international MBA qualification from ICPE, University of Ljubljana Slovenia; for which he was nominated by Department of Public Enterprises, Government of India.  He was also associated with the joint venture Oman India Fertilizer project during 1995-98. He took over as General Manager (Operations) in January 2005, Chief General Manager (Commercial) in July 2006 and Executive Director (Projects and Commercial) in April 2008. As Executive Director (P and C) he was in charge of projects at Thal and Trombay and commercial department looking after imports, purchase, shipments, stores, railway operations, MES/PHS. In addition to operation and maintenance of plants, he has a wide experience of commercial activities, joint ventures, international contracts. He is a member of the Boards’ Management Committee and Audit Committee.

 

Director

Dr.V.Rajagopalan, IAS has been appointed as Director.

 

Director

Shri Sham Lal Goyal, IAS, is the part time Government Director of the Company. He is presently Joint Secretary in Department of Fertilizers.

 

 

 

Unaudited Financial Results for the period ended 30.09.2010

(Rs. In Millions)

 

 

Particular

 

Unaudited Results For

 

 

Quarter ended

Six months ended

 

 

30.09.2010

30.09.2010

1

Gross sales

15787.000

23868.100

 

Less: Excise

158.400

326.100

 

Net Sales/Income from operation

15628.600

23542.000

2

Expenditure

 

 

 

Stock Adjustment

 

 

 

Opening Stock

2166.600

1023.500

 

Closing Stock

3592.400

3592.400

 

(Increase/Decrease in stock)

(1425.800)

(2568.900)

 

Consumption of raw material and utilities

7131.100

11999.200

 

Purchase of traded goods

5665.400

7017.200

 

Employees cost

1113.200

1994.600

 

Depreciation

265.500

521.100

 

Other expenditure

1990.300

3518.400

 

Total

14739.700

22481.600

3

Profit from operation before interest and exceptional items

888.900

1060.400

4

Other income

91.300

201.900

5

Profit before interest and exceptional items

980.200

1262.300

6

Net interest expenditure / (Income)

67.500

55.100

7

Profit after interest but before exceptional items

912.700

1207.200

8

Exceptional items

1.110

(0.600)

 

i. prior period items expense / (income)

1.100

(0.600)

 

ii. Loss on impairment

0.000

0.000

9

Profit (+)/ Loss before tax

911.600

1207.800

10

Tax expenses

302.800

401.200

11

Net profit / (Loss) from ordinary activities after tax

608.800

806.600

12

Extraordinary items

0.000

0.000

13

Net profit(+) / (Loss) for the period

608.800

806.600

14

Paid up equity share capital (face value-Rs. 10/- each)

5516.900

5516.900

15

Reserves excluding revaluation reserves

-

-

16

a. Earning per shares (Rupee) (Before extraordinary item)

1.10

1.46

 

b. Earning per share (Rupee) (After extraordinary item)

1.10

1.46

17

Public shareholding number of shares

41373200

41373200

 

percentage of shareholding

7.50

7.50

18

Promoters and promoter group shareholding

 

 

 

a. Pledged/encumbered

 

 

 

Number of shares

Nil

Nil

 

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

Nil

Nil

 

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

Nil

Nil

 

b. Non-encumbered

 

 

 

Number of shares

510314900

510314900

 

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

100

100

 

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

92.50

92.50

 

 

 

Unaudited Segment wise Revenue Results and Capital employed for the period ended 30.09.2010

 

Rs. In Millions

 

Particular

Unaudited Results For

 

 

Quarter ended

Six months ended

 

 

30.09.2010

30.09.2010

1

Segment Revenue

 

 

a

Trombay

5130.600

8546.400

b

Thal

5777.800

9336.400

c

Trading

4720.200

5659.200

 

Total

15628.600

23542.000

 

Less: Inter Segment Revenue

0.000

0.000

 

Net Sales/ Income from operations

15628.600

23542.000

2

Segment Results

 

 

a

Trombay

379.100

657.100

b

Thal

455.400

474.400

c

Trading

141.000

167.700

 

Total

975.500

1299.200

 

Less: Net Interest Expenditure / (Income)

67.500

55.100

 

Other Net Unallocable Expenditure / (Income)

(3.600)

36.300

 

Total Profit / (Loss) Before Tax

911.600

1207.800

3

Capital Employed

 

 

a

Trombay

11162.600

11162.600

b

Thal

8203.400

8203.400

c

Trading

4090.400

4090.400

d

Others (Unallocated)

8216.200

8216.200

 

Total

31672.600

31672.600

 

 

Note:

 

1 The above statement has been reviewed by the Statutory auditors, recommended by the Audit Committee and taken on record by the Board at its meeting held on 22.10.2010

 

2 There were no investor complaints pending at the beginning of the quarter. Twenty Seven complaints were received and resolved during the quarter.

 

3 Company is holding Fertilizer Bonds worth Rs.6974.300 millions on which MTM loss of Rs.848.400 millions has been provided upto 31.3.2010. As at 30.9.2010 there is a marginal improvement in Bond prices. On a conservative basis MTM gain amounting to Rs.99.500 millions has not been considered for the half year ended 30.9.2010.

 

4 Other expenditure is net of exchange variation (gain) amounting to Rs.163.200 millions for the quarter ended 30.9.2010 and Rs.158.800 millions for half year ended 30.9.2010(P.Y.Rs.390.900 millions gain for the quarter and Rs.694.400 millions for the half year)

 

5 On conservative basis Exchange Gain has been accounted only on liabilities actually settled or hedged as on 30.09.2010. Exchange Gain of Rs.134.000 Millions on revaluation of other foreign currency liabilities/loans outstanding as on 30.9.2010 has not been accounted for.

 

6 Testing of Assets for impairment as per requirements of AS 28 would be done at year end.

 

7 Previous Period figures have been regrouped wherever necessary.

 

 

STATEMENT OF ASSETS AND LIABILITIES

Rs. In Millions

Particulars

30.09.2010 (Unaudited)

Shareholders Funds

 

a) Capital

5516.900

b) Reserves and Surplus

13661.100

Loan Funds

10877.800

Deferred Tax Liability (Net)

1616.800

Total

31672.600

 

 

Fixed Assets

13759.500

Investments

153.000

Current Assets, Loans and Advances

 

a) Inventories

7319.100

b) Sundry Creditors

11364.200

c) Cash and Bank Balances

1065.700

d) Other Current Assets

6260.300

e) Loans and Advances

2241.600

 

28250.900

Less: Current Liabilities and Provisions

 

a) Liabilities

8727.600

b) Provisions

1763.200

 

10490.800

Miscellaneous Expenditure (not written off or adjusted)

0.000

Profit and loss account

0.000

Total

31672.600

 

 

 

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.45.37

UK Pound

1

Rs.70.03

Euro

1

Rs.58.93

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--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.