MIRA
INFORM REPORT
|
Report Date : |
28.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
DEEPAK
FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED |
|
|
|
|
Registered Office : |
Opposite
Golf Course, Shastri Nagar, Yerawada, Pune-411 006, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
31.05.1979 |
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Com. Reg. No.: |
11-21360 |
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Capital
Investment/ Paid-up Capital: |
Rs.882.049 millions |
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|
CIN No.: [Company
Identification No.] |
L24121MH1979PLC021360 |
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|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD10002G |
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PAN No.: [Permanent
Account No.] |
AAACD1388D |
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Legal Form : |
It is
a public limited liability company.
The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing
of Ammonia, Methanol, Nitric Acids (in various concentrations), Low Density
Prilled Ammonium Nitrate (Explosive Grade) and Nitrophosphate Fertilisers,
Chemical Fertilisers containing Nitrates and Phosphates (Nitrophosphates /
Ammonium Nitrate Phosphate), Organic Chemicals, Acrylic Alcohols, Methyl
Alcohol and Ammonium Nitrate. |
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|
|
|
No. of
Employees: |
Approximately 7000 |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (74) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 43000000 |
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|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed company having good track. Financials of the
company appears to be sound. Directors are reported to be experienced and
respectable businessmen. Trade relations 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.
INFORMATION DECLINED BY
|
Name : |
Mr. Sachin Parikh |
|
Designation : |
Office Executive |
|
Date : |
26.07.2011 |
|
|
|
|
Name : |
Mr. Banerjee |
|
Designation : |
Accounts Manager |
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Contact No.: |
91-20-66458000 |
|
Date : |
26.07.2011 |
LOCATIONS
|
Registered Office / Corporate Office : |
Opposite Golf Course, Shastri Nagar, Yerawada, Pune
-411006, |
|
Tel. No.: |
91-20-26684155/26684342/26684597/26684235/26458000 |
|
Fax No.: |
91-20-26687499/26683727 |
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E-Mail : |
rsriraman@deepakfertilisers.com
investorgrievance@deepakfertilsers.com
|
|
Website : |
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Factory : |
Plot No.
K-1, MIDC Industrial Area, Taloja, A. V. – 410 208, District Raigad, |
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Tel. No.: |
91-22-67684000 |
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Fax No.: |
91-22-27412413 |
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E Mail: |
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Factory 2 : |
Plot
No. 32, Sector 16, |
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Branch : |
Located at: |
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E-Mail: |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. C. K. Mehta |
|
Designation : |
Chairman |
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Qualification : |
Undergraduate |
|
Date of Appointment : |
31.05.1979 |
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Other
Directorships :- |
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|
|
|
|
Name : |
Mr. S. C. Mehta |
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Designation : |
Vice
Chairman and Managing Director |
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Qualification : |
B.
Com., M.B.A. ( |
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Date of Appointment : |
04.09.1985 |
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Other
Directorships :- |
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|
|
|
|
Name : |
Mr. R. A. Shah |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. D. Basu |
|
Designation : |
Director |
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Qualification : |
Master’s
Degree in Economics |
|
Date of Appointment : |
27.07.2000 |
|
Other
Directorships :- |
|
|
|
|
|
Name : |
Mr.
N. C. Singhal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. U. P. Jhaveri |
|
Designation : |
Director |
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|
Name : |
Mr. S. R. Wadhwa |
|
Designation : |
Director |
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|
Name : |
Dr. S Rama Iyer |
|
Designation : |
Director |
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|
Name : |
Mrs. Parul S.
Mehta |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. D. C. Mehta |
|
Designation : |
Director |
|
Qualification : |
B.
Sc. |
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Date of Appointment : |
31.05.1979 |
|
Other
Directorships :- |
· Deepak Nitrite Limited · Nova Synthetic Limited · Skyrose Finvest Private
Limited · Sundown Finvest Private
Limited · Forex Leafin Private Limited · Pranawa Leafin Private Limited · Hardik Leafin Private Limited · Samoon Investment and Finance
Private Limited · The Lakaki Works Private
Limited |
|
|
|
|
Name : |
Mr. Anil Sachdev |
|
Designation : |
Director |
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|
|
Name : |
Mr. Pranav Vakil |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. R Sriraman |
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Designation : |
Senior Vice President (Legal) and Company Secretary |
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|
|
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Management Team: |
Dr. T. K. Chatterjee, President – Strategic Initiatives and Projects Mr. Somnath Patil, President and CFO Mr. Rajendra Sinh, President – HRD and Corporate Services Mr. Anand Sundaram, CEO- VARE Dr. Rajeev Chemburkar, President – Chemicals Mr. Guy R Gove, President – Agribusiness |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
19,556,085 |
22.17 |
|
|
18,507,243 |
20.98 |
|
|
38,063,328 |
43.15 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
38,063,328 |
43.15 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
6,475,894 |
7.34 |
|
|
14,875 |
0.02 |
|
|
1,323,594 |
1.50 |
|
|
10,774,128 |
12.21 |
|
|
18,588,491 |
21.07 |
|
|
|
|
|
|
5,787,786 |
6.56 |
|
|
|
|
|
|
19,240,382 |
21.81 |
|
|
3,717,673 |
4.21 |
|
|
2,807,283 |
3.18 |
|
|
12,075 |
0.01 |
|
|
2,610,458 |
2.96 |
|
|
184,750 |
0.21 |
|
|
31,553,124 |
35.77 |
|
Total Public shareholding (B) |
50,141,615 |
56.85 |
|
Total (A)+(B) |
88,204,943 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
88,204,943 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing
of Ammonia, Methanol, Nitric Acids (in various concentrations), Low Density
Prilled Ammonium Nitrate (Explosive Grade) and Nitrophosphate Fertilisers, Chemical
Fertilisers containing Nitrates and Phosphates (Nitrophosphates/Ammonium Nitrate
Phosphate), Organic Chemicals, Acrylic Alcohols, Methyl Alcohol and Ammonium
Nitrate. |
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Products : |
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Brand Names : |
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PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Ammonia |
(MT) |
125400 |
125400 |
150926 |
|
CNA |
(MT) |
79200 |
79200 |
93546 |
|
DNA |
(MT) |
445500 |
445500 |
308950 |
|
Methanol |
(MT) |
100000 |
100000 |
81888 |
|
IPA |
(MT) |
70000 |
70000 |
67462 |
|
Propane |
(MT) |
-- |
-- |
9166 |
|
Crude IPE |
(MT) |
-- |
-- |
2557 |
|
TAN |
(MT) |
429000 |
429000 |
146827 |
|
CO2 |
(MT) |
33000 |
33000 |
30403 |
|
NP |
(MT) |
229500 |
229500 |
125231 |
|
|
(MT) |
25000 |
25000 |
11254 |
|
Power |
KWH |
87600000 |
87600000 |
15427120 |
GENERAL INFORMATION
|
No. of Employees : |
Approximately 7000 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
|
|
Name : |
B. K.
Khare and Company Chartered
Accountants |
|
Address : |
Mumbai,
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Solicitors: |
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|
|
|
Associates: |
·
Blue
Shell Investments Private Limited ·
Deepak
Nitrite Limited ·
Nova
Synthetic Limited ·
Yerrowda
Investments Limited ·
The
Lakaki Works Private Limited ·
Superpose
Credits And Capital Private Limited ·
Storewell
Credits And Capital Private Limited ·
High
Tide Investments Private Limited ·
Deepak
Asset Reconstruction Private Limited ·
Mahadhan
Investment And Finance Private Limited ·
Ishanya
Foundation ·
Ishanya
Realty Corporation Limited ·
Ishanya
Brand Services Limited |
|
|
|
|
Subsidiaries |
·
Smartchem Technologies Limited ·
Deepak Nitrochem Pty. Limited ·
Deepak Mining Services Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125000000 |
Equity Shares |
Rs.10/- each |
Rs.1250.000 millions |
|
1000000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.100.000 millions |
|
|
|
|
|
|
|
TOTAL |
|
Rs.1350.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
88204943 |
Equity Shares |
Rs.10/- each |
Rs.882.049 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
882.049 |
882.049 |
882.049 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9779.115 |
8421.949 |
7149.087 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10661.164 |
9303.998 |
8031.136 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7756.673 |
6811.969 |
4460.759 |
|
|
2] Unsecured Loans |
0.000 |
500.000 |
1616.755 |
|
|
TOTAL BORROWING |
7756.673 |
7311.969 |
6077.514 |
|
|
DEFERRED TAX LIABILITIES |
806.144 |
621.018 |
650.548 |
|
|
|
|
|
|
|
|
TOTAL |
19223.981 |
17236.985 |
14759.198 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10168.915 |
7587.263 |
7291.772 |
|
|
Capital work-in-progress |
2713.344 |
4141.588 |
2435.032 |
|
|
|
|
|
|
|
|
INVESTMENT |
1135.718 |
1557.734 |
1544.569 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1567.675
|
1116.321
|
985.404
|
|
|
Sundry Debtors |
2500.495
|
1981.247
|
2719.452
|
|
|
Cash & Bank Balances |
2690.734
|
2062.429
|
1589.523
|
|
|
Other Current Assets |
34.797
|
17.332
|
32.785
|
|
|
Loans & Advances |
1486.437
|
1090.012
|
867.057
|
|
Total
Current Assets |
8280.138
|
6267.341
|
6194.221 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
987.195
|
643.451 |
1345.046 |
|
|
Other Current Liabilities |
1354.786
|
1033.583
|
843.441 |
|
|
Provisions |
732.153
|
639.907
|
523.397 |
|
Total
Current Liabilities |
3074.134
|
2316.941
|
2711.884 |
|
|
Net Current Assets |
5206.004
|
3950.400
|
3482.337 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
5.488 |
|
|
|
|
|
|
|
|
TOTAL |
19223.981 |
17236.985 |
14759.198 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from Operations |
15648.177 |
12879.783 |
14121.069 |
|
|
|
Other Income |
358.227 |
449.030 |
360.014 |
|
|
|
TOTAL (A) |
16006.404 |
13328.813 |
14481.083 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
12146.084 |
10149.446 |
11322.200 |
|
|
|
Inventory Adjustment |
40.563 |
[54.756] |
76.779 |
|
|
|
Prior Year’s Adjustment |
17.599 |
0.173 |
0.562 |
|
|
|
Exceptional Item |
33.809 |
[250.436] |
33.111 |
|
|
|
TOTAL (B) |
12238.055 |
9844.427 |
11432.652 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3768.349 |
3484.386 |
3048.431 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES/
INTEREST (D) |
439.013 |
463.289 |
404.664 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3329.336 |
3021.097 |
2643.767 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
714.671 |
643.321 |
523.758 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2614.665 |
2377.776 |
2120.009 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
748.424 |
657.296 |
632.973 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1866.241 |
1720.480 |
1487.036 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6091.764 |
5117.784 |
4194.944 |
|
|
|
Transfer
from Debenture Redemption Reserve |
38.000 |
28.500 |
28.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Transferred to Debenture Redemption Reserve |
179.200 |
154.200 |
62.500 |
|
|
|
Transferred to General Reserve |
187.000 |
175.000 |
150.000 |
|
|
|
Proposed Divided (Net of Earlier year’s reversal) |
440.865 |
397.100 |
352.831 |
|
|
|
Corporate Dividend Tax |
66.392 |
48.700 |
27.365 |
|
|
|
BALANCE CARRIED
TO THE B/S |
7122.548 |
6091.764 |
5117.784 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value |
460.824 |
422.381 |
456.782 |
|
|
|
Other Earnings |
37.817 |
28.391 |
84.605 |
|
|
TOTAL EARNINGS |
498.641 |
450.772 |
541.387 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1154.616 |
572.463 |
1420.775 |
|
|
|
Stores & Spares |
102.209 |
124.515 |
51.694 |
|
|
|
Capital Goods |
91.578 |
97.430 |
7.217 |
|
|
|
Traded Goods |
1152.158 |
1439.419 |
3138.806 |
|
|
TOTAL IMPORTS |
2500.561 |
2233.827 |
4618.492 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
21.16 |
19.51 |
16.86 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
11.66
|
12.91 |
10.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.71
|
18.46 |
15.01 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.17
|
17.16 |
15.72 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.26 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.02
|
1.03 |
1.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.69
|
2.71 |
2.28 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS
(Rs.
in Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Sundry Creditors |
987.195
|
643.451 |
1345.046 |
HISTORY
Promoted in 1979 by Deepak
Nitrite and C K Mehta as a private limited company, subject became a public
company in 1982. It manufactures anhydrous liquid ammonia. The 272-tpd plant at
Taloja went on stream in Dec.'83. The plants are located in the well developed
industrial area at Taloja near
Smartchem Technologies Limited and Deepak Nitrochem Pty Limited,
The company diversified into the manufacture of ammonium nitro-phosphate (ANP)
fertiliser (cap.: 23 Millions TPA) and integrated into the manufacture of
concentrated nitric acid (33,000 tpa), ammonium nitrate (36,000 tpa) and dilute
nitric acid (200,000 tpa). It also set up a 100,000-tpa methanol project which
was part financed through a public issue of convertible debentures in Jan.'89.
DFL has a technical collaboration with Fish International Engineers, US and
Stamicarbon, the
Keeping in mind the constraint of gas supply, the company had invested in a
port-based storage facility for imported ammonia. The Company is also exploring
the possibility of increasing the number of sources of Ammonia including the option
of setting up a gas-based Ammonia plant abroad and also studying oppportunities
for broad-basing industrial chemical products through forward integration. The
company has implemented the debottlenecking of Ammonia Plant but the additional
gas supply was never received.
The expansion of NP fertilizer plant to 3, 00,000 tons p.a and LDAN plant to 1,
00,000 tons p.a was taken up in 2001-02. The engineering work for AN Melt
capacity was completed and the above the plants were commissioned during 2002-03
there by enhancing the capacity by 90,000 tpa. Technology for the new plant has
been supplied by
The company has increased the installed capacity of CNA by 23100 MT during
2004-05 and with this expansion the total installed capacity of CNA has
increased to 79200 MT.
OPERATION:
Sales (including other income) increased to Rs. 16006.400 Millions
(including Rs. 2688.600 Millions from trading operations) as against Rs. 13328.800 Millions (including Rs. 2933.700
Millions from trading operations) for
the previous year. PBT for the year improved to Rs. 2614.700 Millions as against Rs. 2377.800
Millions in the previous year. Net
Profit for the current year was Rs. 1866.200 Millions as compared to
Rs. 1720.500 Millions in the previous year.
SECURED DEBENTURES
In accordance with the terms of
issue of Secured Non-Convertible
Debentures of Rs. 1.000 Million each aggregating Rs. 200.000 Millions
and Rs. 180.000 Millions, earlier issued in favour of Financial Institutions,
the Company during the year has fully
redeemed the Debentures on the due date
15th September, 2010 and 30th September, 2010
respectively.
During the year, for augmenting
the long term resources and for meeting
general corporate expenditure, the Company has issued Secured Non-Convertible Debentures of Rs.
1.000 Million each aggregating Rs.
500.000 Millions on Private Placement Basis and these Debentures are
listed on the National Stock Exchange of
India Limited. These Debentures carry
coupon rate of 9.31% and are due for repayment at the end of five
years from the date of allotment as per
the terms and conditions of issue.
THE MACRO-SCENARIO
The Indian economy continued to shine through the financial year
2010-11(FY 11). The Indian economy grew at 8.6%. It is expected to continue
growing around 7.5 to8% driven largely by domestic demand drivers, the service
sector growth momentum and exports.
Infrastructure is likely to follow its growth trajectory. The
gradual opening up of the mining sector to private players should also augur
well for the economy. The agri-products and consumer demand are also expected
to continue with the present trend.
However, expectations for the medium term may need to be slightly
mellowed. The International Monetary Fund (IMF) in its April 2011 World
Economic Outlook (WEO) has assumed crude oil prices at US$ 107 per barrel for
the year. The current high demand pressure for oil is expected to exacerbate
with fresh Japanese demand. Concerns about supply disruptions due to political
developments in the
Further, domestic and global inflation levels remain a cause
for concern. Interest rates may further firm up through FY12. FII and FDI
inflows are expected to remain strong and bank liquidity is still positive.
Credit growth is likely to get impacted as interest rates firm up.
THE SCENARIO FOR DFPCL
Given its product and customer profile, with its pronounced
tilt towards the Indian farmer, the mining sector, the chemicals customer and
the urban consumer, and its considerable strengths in product pricing derived
from its advantages of scale, proximity, distribution network, quality,
technical services and brands, the Company's potential for growth remains
positive.
Raw Materials
The Company's key raw materials are Natural Gas and its
derivative, Ammonia, along with Propylene, Phosphoric Acid and
Multiple sources of gas are now available in
However, recent pronouncements from the Government's
Directorate General of Hydrocarbons and some of
On the other hand, ONGC announcements about its strong focus
on gas exploration at the KG basin, gas from marginal fields and the
availability of LNG are positive signals. The Company will continue to monitor
the developments carefully and will take appropriate steps to develop options
so that supplies of such crucial raw materials are well managed.
On the Ammonia front, the Company will need a combination of
in-house manufacture and outsourcing to maximise downstream capacity
utilisation at its plants in the coming years. While Ammonia prices, globally,
have been on an uptrend in recent months, the Company's location and storage
facilities enable it to source Ammonia either domestically or from the world
markets. Besides stepped up domestic Ammonia sourcing, the Company has tied up
with a prominent
Propylene prices have been increasing in recent months.
Globally Iso Propyl Alcohol(IPA) prices have generally moved in tandem with
Propylene prices. Thus, the Company is confident that it can keep its margins
reasonably intact.
The Company is also working on a strategy to ensure
consistent and adequate quantities of Phosphoric Acid. Price outlook for this
product is expected to remain largely stable. Further the new Nutrient Based
Subsidy scheme is also expected to help absorb any potential price hikes.
Fertiliser/Agri-sector
The Government's new Nutrient Based Subsidy (NBS) policy,
introduced from April 1,2010, has been positive for all the stakeholders viz. the
Indian farmer, the fertilizer industry and the Company. Along with improved
production planning and cost management, better margins have been achievable in
the fertiliser sector. The Indian fertilizer industry is now clearly poised on
a new growth trajectory. The strong growth trends for both horticulture and
food crops production as well as attractive prices are expected to have a
positive impact on agri-exports from
The Company continues to drive growth with its strategy of
providing a complete basket of products and services to the Indian farmer. Its
strong brands and customer relationships, robust distribution networks and
knowledge-driven services are the key in this regard. Output management of
horticultural products as a service and business driver will be expanded
strategically, to achieve a competitive edge.
CHEMICALS
Technical Ammonium Nitrate (TAN)
Industrial Chemicals
According to recent estimates, the Indian chemical industry
growth is lagging behind GDP growth, highlighting its high demand potential.
The Company's key industrial chemicals products viz, Nitric Acid, Iso Propyl
Acohol (IPA) and CO 2 serve some of the fastest growing sectors of Indian
Industry.
Nitric Acid is a basic commodity chemical with widespread
use across several sectors. Demand estimates for the Indian Nitric Acid market
are around 8% given the high levels of growth in nitro-aromatics,
pharmaceuticals and dyestuffs, in particular.
The biggest user of IPA in
Thus, with the continuing consumer demand, the outlook for
the Company's key industrial chemical products remains strong.
REALTY SECTOR
According to McKinsey, the expansion of domestic consumption
in
This highlights the potential in Indian retail and, by
consequence, in retail-facilitation structures like malls where research
indicates that with changing aspiration-based lifestyles, categories that
define perceptual social identity will become key growth areas. Therefore,
apparels, home textiles, leisure, consumer durables, jewellery and watches etc.
are expected to show clear and strong growth strengths.
Further, in comparison to a plain vanilla mall, the
lifestyle seeking consumer now clearly prefers a differentiated offering - the
lifestyle centre - which goes beyond just shopping and helps enhance lifestyle
aspirations. In keeping with these trends the Company has been working on
changing its mall venture, Ishanya, into a true world-class lifestyle centre
with the new High Street Ishanya concept. New categories include lifestyle
accessories, fine-dining and world-class entertainment options. The Company is
confident that this new strategy will improve the overall business value to the
shareholders.
Detailed Financial and Operational Analysis
Financial Analysis
During the year 2010-11 the Company has shown increased
production levels across all its major products.
Total Revenue for 2010-11 stood at Rs. 16006.400 Millions against Rs. 13328.800
Millions in2009-10, an increase of 20%. Sales for the agri-business grew 20% to Rs. 5284.500
Millions in2010-11 from
Rs. 4391.800 Millions in 2009-10 while sales for the chemicals
business grew 26%to Rs. 10759.400
Millions in 2010-11 from
Rs. 8524.600 Millions in 2009-10.
Profit Before Tax increased to Rs. 2614.700 Millions in 2010-11 from Rs. 2377.800
Millions in2009-10, while Net Profit stood at Rs. 1866.200 Millions in 2010-11
against Rs. 1720.500
Millions in 2009-10. Net Profit for the year is not comparable with the
previous financial year given the exceptional gain of Rs. 257.100 Millions (net) arising
from sale of surplus land in FY10.
Earnings Per Share went up to Rs. 21.16 compared to Rs. 19.51 in the
previous year. The Company's operating margins stood at 22.01% against 21.62%
in 2009-10.
The Company's financial position continues to remain sound.
The average debt cost stood at 9.24% for 2010-11 against 9.88% for 2009-10.
During 2010-11, long term funds of Rs. 2040.000 Millions were borrowed mainly
to finance the new 3,00,000 MT TAN project.
Short-term borrowings stood at Rs. 1160.200 Millions in FY 11 against Rs. 1221.600
Millions in FY 10. For 2010-11, the outstanding debt stood at Rs. 7756.700
Millions against Rs. 7312.000
Millions in 2009-10. The debt-equity ratio stood at a healthy 0.62 as compared
to 0.65 in previous year. The current ratio, including liquid investments, was
at 2.79 in 2010-11against 2.96 in 2009-10.
Operational Analysis
The Company utilised 0.650 MMSM per day of Natural Gas 3
(NG) during the year on an average, compared to 0.582 MMSM per day of 3NG
during 2009-10.
Ammonia requirements for the year were met through both
in-house manufacture and outsourcing. Production levels of Ammonia increased
during the year to1,07,100 MT against 1,00,851 MT in 2009-10. The Company
outsourced 43,826 MT of Ammonia from the market.
Product-wise business review
The Company's production reached record levels for Ammonia,
Liquid CO2, IPA, DNA and Bensulf for the year. Capacity utilisation will now be
maximized in the coming year with better raw material management and
operational efficiencies.
Fertiliser/Agri-Sector
The total bulk fertiliser sales volume for 2010-11 was
2,84,935 MT against 2,61,655 MT for 2009-10. Total revenue from the
agri-business grew 20% to
Rs. 5311.800 Millions in 2010-11from Rs. 4420.700 Millions in 2009-10.
Production volumes of Nitro-Phosphate Fertiliser (NP) rose
to 1,25,231 MT from 1,00,284MT. Capacity utilisation was not optimal during the
year owing to technical problems at the plant during the second quarter of FY
11 and the oil spill on the West Coast of India causing a diversion of phos
acid shipment during the third quarter of the year.
The Company successfully introduced the 24:24:0 grade of NP
during the second half of the year. While enhancing crop productivity, the new
grade will also help increase margins. Production volumes of Sulphur Bentonite
rose to 11,254 MT in 2010-11against 10,191 MT in 2009-10. Sales of speciality
fertilisers saw an increase of 33% in value terms.
Nutrient management and advisory services continued to be a
focus area. The nine Saarrthie centres now service about 7,648 hectares of
cultivable land and have 9,808farmer members. The Company's efforts to meet
Global GAP standards for its agri-produceand its stringent quality practices
have enabled it to develop a Deepak GAP (Good Agricultural Practices) Standard
for its agri-products exports for the global markets. The Company has also
obtained the National Accreditation Board for Testing and Calibration
Laboratories (NABL) Accreditation which is the Highest Standard for GLP – Good
Laboratory Practices.
The Company's move to expand its geographical footprint into
states like Punjab and Haryana, in addition to the traditional markets of
Maharashtra, Gujarat, Karnataka and
Industrial Chemicals
The total revenue for the chemical segment increased to Rs. 10759.400
Millions in 2010-11against
Rs. 8524.600 Millions during 2009-10, registering a growth of
26%.
• Technical Ammonium Nitrate (TAN)
Overall sales volumes for TAN stood at 1,46,115 MT for the
year 2010-11 against the previous year's sales of 1,33,043 MT, a growth of 10%.
The Company, along with its subsidiary, Smartchem Technologies Limited, enjoys
around 30% market share in the domestic market.
The new 3,00,000 MTPA TAN plant has already commenced
production and its product quality is well received by the market. As a
start-up, the Company successfully produced29,503 MT of TAN at its new plant
during the year. The WNA plant supporting this TAN complex is currently being
stabilised. Capacity utilisation levels at the new plant are expected to be
gradually scaled up during 2011-12, to peak in 2012-13. The Company's efforts
to augment its distribution chain are well underway with the setting up of
warehouses close to the customer. Improved logistics management systems have
also been put into place for efficient and cost-effective movement via rail and
road.
TAN produced at the new plant will replace the low-quality
Fertiliser Grade Ammonium Nitrate currently being imported into
• Methanol
Riding on improved global prices, Methanol production during
the year rose to 81,888 MT as compared to 65,647 MT of the previous year.
• Iso Propyl Alcohol
During the year, the Company recorded the highest production
and sale of IPA. The Company is the only manufacturer of this product in
The Company is the market leader for IPA in
• Acids
The Company is
Currently, the Company's market share of Nitric Acid put
together is about 39% in the Indian market.
• Liquid CO2
Demand for this product, a by-product of Ammonia, was good.
Total sales volume stood at 30,310 MT in 2010-11 against
29,176 MT in 2009-10.
The Company's customer relationship in the Chemical Sector
and its ability to offer world-class service with its domestic geographical
advantages will be a key source of competitive advantage in the years to come.
REALTY
This segment of the Company’s business is now in a turn
around phase. Total revenues from this segment stood at Rs. 118.000 Millions in 2010-11
against Rs. 139.900
Millions in 2009-10. As of 31st March, 2011, occupancy at Ishanya stood at
1,92,553 sq. ft. despite the continuing construction work on the remodelling of
the mall for its new High Street positioning. During the year footfalls
continued to be robust with several activities like fairs and shows drawing
crowds at key junctures in the consumer shopping cycle. Brand recall for
Ishanya continues to be good in its key catchment areas.
The new High Street Ishanya concept, with its expanded range
of offerings to the consumer, at the Company’s iconic mall in Pune, is drawing
a good response across the Indian retail industry, as a result of which an
additional 2,00,000 sq. ft. of space has been committed for 2011-12. The
Company is confident that the new High Street Ishanyawill improve the business
as well as its brand value.
FUTURE PROJECTS
In keeping with its strategic growth focus on the Chemicals
sector, the Company is envisaging a 3,00,000 MT Technical Ammonium Nitrate
project in South Australia, for which land has been identified by the local
government near the deep sea port of Bonython. The Company will now conduct
detailed Environmental Impact Assessment and Feasibility Studies over the next
12 to 15 months. On confirmation of technical and financial feasibility, the
project can be completed in a 24 months timeframe thereafter.
The Company has also taken up the project of a third CNA
plant as also retro fitting its AN melt and fertiliser plant capacities.
Going forward the Company is keenly considering other
chemical, fertiliser and agri projects. A close study on backward integrations
/ strategic alliances for all raw materials is also underway.
Fixed Assets
- Land freehold
- Land
leasehold
- Buildings
- Plant and
machinery
- Electrical
installation and fittings
- Furniture and
fixtures
- Office
equipments
- Vehicles
Its’ products range includes :-
- Ammonia
- Methanol
- Dulute Nitric Acid (DBA)
- Concentrated Nitric Acid (CAN)
- Liquid Carbon-di-oxide (CO2)
- LDAN
- Nitro Phosphate (NP)
- MOP
- DAP
- Ammonium Sulphate
- Mixtures
- Urea Seeds
- Micronutrients
- SSF
- Traded Bulk Fertilisers
- Traded
Speciality Agro Products
AS PER
WEBSITE
Introduction
The Subject Group of industries was born in 1970 when Mr. C. K. Mehta set up
Deepak Nitrite Limited, combining his skills in trading and manufacturing. The
company grew by leaps and bounds, surpassing expectations of all investors and
also won many prestigious awards like the Sir P.C.Ray award, for being the best
Chemical Industrial unit in
In 1983, Subject started commercial production of ammonia
(in technical collaboration with Fish International Engineers (USA)) using
natural gas as feedstock. This marked the fulfillment of a need for lateral
integration into the world of basic building block chemicals, premium
fertilisers and petrochemicals. At the time, this was
The company undertook major expansion and diversification in
1989 to achieve forward integration of ammonia and diversification in Methanol.
In July 1992, Subject commenced commercial production of Low
Density Ammonium Nitrate (LDAN), Nitro Phosphate (NP), Dilute Nitric Acid
(DNA), and Concentrated Nitric Acid (CNA).
This has resulted in a multi-product portfolio for subject
consisting of chemicals, petrochemicals, fertilisers and other agri-inputs. To
ensure an uninterrupted supply of natural gas to its plant, subject laid its
own 43 km gas pipeline from the coastal fall point of Bombay High to its plants
in Tajola, thus becoming one of the first companies in
Subject has a chemical storage
terminal at Jawaharlal Nehru Port Trust (JNPT) to provide support to its
logistics management system and ensure a window to the world trade in
chemicals. It is in the process of adding new storage facilities for Ammonia,
Methanol and other products. The company also leases port storage capacities at
Bombay Port Trust and
Subject business can be broadly categorised into: -
- Chemicals
- Agribusiness
Chemicals:
This division of Subject manufactures Methanol, various
grades of Nitric Acid and Ammonia. Subject is one of the largest producers of
Methanol in
Agribusiness:
This division of DFPCL manufactures 23:23:0 prilled
Nitrophosphate fertiliser under the brand name Mahadhan. DFPCL markets Mahadhan
through a network of over 1000 dealers.
Ishanya:
Ishanya is
Ø
For architects and interior designers,
Ishanya is a platform to showcase their art, craft and vision to a targeted and
discerning audience.
Ø
For manufacturers and retailers of
interior and exterior products, it's the perfect marketplace to make the most
of
Ø
For homeowners, corporate shoppers and
visitors, Ishanya will provide the ultimate experience in shopping for the
home.
Social Responsibilities
The Subject Group has been contributing towards social causes for nearly two
decades. The Deepak charitable Trust (DCT) and the Deepak Medical Foundation
(DMF) with the support of Subject and Deepak Nitrite Limited are carrying on
development activities for society.
DCT has been actively working in the area of mother and
childcare. Through an integrated network of women health workers the foundation
has been imparting training and communication on health care. Extending the
activities on both sides, the Foundation has catalysed and supported the
creation of Aanganwadis, and taken education to youth on family planning. The
Foundation is now working to curtail the spread of HIV / AIDS.
Subject takes an active interest in environmental
protection. In addition to regulatory requirements of the State Pollution
Boards and Federation of Indian Industries, care is taken to reduce pollution
by incorporation of appropriate effluent handling disposal systems.
In their plants they continuously monitor solid, semisolid
and gaseous affluent discharges to ensure that they are within allowable
limits. They also help other small industries as well as customers in solving
their environment- related problems.
Future Prospects
Subject will continue to make deeper inroads into value-added chemicals, agro
inputs and related services.
· Subject
plans to leverage its well-knit marketing and distribution network in chemicals
and fertiliser industry to provide value-added services to their customers for
sourcing raw materials and assisting them in exporting their products. The
chemical storage and drumming facilities at Jawaharlal Nehru Port (JNPT) near
·
They are awaiting environmental clearance for a new port storage
facility at JNPT.
· Deeper
in-roads into agro-inputs and services markets are on the drawing board,
including the MAHADHAN Agriculture Research Centre (MARC), which will serve to
partner with farmers, providing education, training and ensuring that they
achieve the best performance.
Dreams of visionary minds and
planned strategy by professional managers will give shape to an emerging,
exciting future at subject.
People
(As of August 2009)
Subject is managed by a Board of Directors, with significant representation of
independent (and highly regarded) experts, who bring with them a multi-faceted
storehouse of knowledge and expertise. This ensures transparency, governance
and high quality inputs for the company.
A well known Industrialist, having 50 years of versatile experience in the
Chemical Trade and Industry, and the founder of Deepak Nitrite Limited and
Deepak Fertilisers And Petrochemicals Corporation Limited. He has been managing
both the Companies successfully for the last 31 years.
S. C.
Mehta, Vice Chairman and Managing Director
A young Industrialist graduated in Management from
R. A.
Shah, Non-Executive Director
Solicitor and Senior Partner of M/s. Crawford Bayley and Company, a well known
firm of solicitors in Mumbai, having rich and vast experience in the field of
Corporate Laws and Corporate Governance.
D.
Basu, Non-Executive Director
Former Chairman of State Bank of
N. C.
Singhal, Non-Executive Director
Former-Managing Director of SCICI, Financial Expert and has vast experience in
the field of Banking and Finance.
U. P.
Jhaveri, Non-Executive Director
A Chemical Engineer by qualification has rich experience of more than 31 years
in project management, plant operation, optimisation, reliability productivity
improvement etc. in Gujarat State Fertilizer Company Limited and Gujarat
Narmada Valley Fertilizer Company Limited
S. R.
Wadhwa, Non-Executive Director
He was Former Chief Commissioner of Income-Tax, Chairman Income-Tax Settlement
Commission as well as Director, Ministry of Finance CBDT. An MA, LLM, CAIIB by
qualification has rich background in the field of finance / tax. He is a Tax
Management Consultant and an advocate practicing in taxation at
Smt. Parul Mehta, Non-Executive Director
Smt. Parul S. Mehta has made notable contributions over the last few years in
the areas of corporate public relations and more currently in the Landscape
design, FandB, Convention Centre and Arts block of Ishanya, the Company’s
Speciality Mall project. Additionally, she runs the Ishanya Foundation.
She has very actively taken up the social welfare activities of the Company key
among which are, the upliftment of the village community near Taloja and a
Diabetic Care Centre in Pune.
S.
Rama Iyer, Non–Executive Director
A Chemical Engineer with M.Tech and Ph.D having vast hands-on experience of
four decades and knowledge in the areas of process technology, design
engineering, project management and construction management of large projects
both in India and abroad. He was Executive Chairman of Aker Kvaerner Powergas
Private Limited
Shri
Anil Sachdev, Non-Executive Director
Began his career with Tata Motors and was associated with Eicher group. He is
the founder and Chief Executive Officer of Grow Talent Company Limited, which
grew to have over 100 consultants. Besides being a consultant for many top
global firms, he is active in management circles and has held several publi
offices viz., Chairman of National Committee on Industrial Relations and
Regional Committee on Human Resource Development of Confederation of Indian
Industry. He was also the President of the National HR Network of
PRESS RELEASE:
DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LTD. RECORDS A ROBUST
32% INCREASE IN INCOME Q4 2010-11
PBT up 24% and PAT up 19% for Q4 FY11
Income from operations up 21% for the year
Records higher profits on account of increase
in sale of own manufactured products
Segment Profitability for the Agri-business
grows 95% for FY 11
Segment profitability for Chemicals grows 21%
for FY 11
Announces dividend of 50%
Mumbai/Pune, Wednesday, May 11, 2011: Deepak Fertilisers And Petrochemicals
Corporation Limited (DFPCL) today announced the financial results for the
quarter ended March 31st 2011 and for the Financial Year 2010-11. For the
quarter ended March 31st 2011, DFPCL has recorded Income from Operations at Rs.
4284.800 Millions; a 32% rise over the corresponding period last year (Rs.
3238.300 Millions). For the same period, the Company’s Profit before Tax rose
24% to Rs. 735.500 Millions against Rs. 595.400 Millions and Profit after Tax
rose 19% to Rs. 527.100 Millions against Rs. 441.600 Millions in the
corresponding period of the previous year. For the year ended March 31st 2011,
the Company posted Income From Operations at Rs. 15648.200 Millions, against
Rs. 12879.800 Millions for FY 2009-10, an increase of 21%. Also for the same
period, DFPCL recorded Profit Before Tax at Rs. 2614.700 Millions in 2010-11
against Rs. 2377.800 Millions in the previous financial year. Profit After Tax
was recorded at Rs. 186.61 this year against Rs. 1720.500 Millions in the
previous year. PAT for the year is not comparable with the previous financial
year given the exceptional gain of Rs. 257.100 Millions (net) arising from sale
of surplus land in FY10 as against a exceptional loss of Rs. 33.800 Millions
arising from the reconstruction at Ishanya. Segment profitability for the
Agri-business grew 96% to Rs. 316.500 Millions in 2010-11 from Rs. 162.100
Millions in the previous year. Profitability for the Chemicals business grew
21% to Rs. 3194.600 Millions in 2010-11 against Rs. 2642.300 Millions in the
previous year. Earnings Per Share went up to Rs. 21.16 compared to Rs. 19.51 in
the previous year. The Company announced a dividend of 50% for the year. During
the year, sales for the Chemicals business grew 26% to Rs. 10759.400 Millions
in 2010-11 against Rs. 8524.600 Millions in 2009-10. The Chemicals business has
contributed to 68.76% of the total income from operations. Sales for the
Agri-business grew 20% to Rs. 5311.800 Millions in 2010-11 against Rs.4420.700
Millions in 2009-10. The sales of specialty fertilisers grew 33% during the
year over the previous year. DFPCL successfully introduced the 24:24:0 grade of
its Nitro-Phosphate fertiliser during the second half of the year. This is
yielding improved realisations and margins and will enhance farmer benefits
considerably.
DFPCL successfully produced 29,503 MT of Technical Ammonium Nitrate
(TAN) at its new TAN complex at Taloja during the year. The product meets
global quality standards. The Dilute Nitric Acid (DNA) plant supporting this
TAN complex is under stabilization. Capacity utilisation levels at the new
plant are expected to be gradually scaled up during 2011-12, to peak in
2012-13. At the Company’s mall, Ishanya, footfalls continued to be robust. The
Company’s new High Street Ishanya strategy, designed to widen the scope of
offerings at the mall, has drawn encouraging response from potential tenants
and leading retail brands with an additional space leasing commitment of close
to 2,00,000 sq.ft. Ishanya in its new avatar is expected to open to consumers
in the course of this year. Brand Ishanya continues to enjoy high recall in
Pune despite rising competition. Commenting on the Company’s performance and the
sector, Mr. Sailesh C. Mehta, Vice Chairman and Managing Director of DFPCL,
said, “The Company has witnessed a good year, in terms of production,
realizations and profits. We have recorded higher profits this year primarily
on account of an increase in the sale of own manufactured products and better
realizations on key products. The new NBS policy has gone down well for the
industry as a whole. Our agri-business has posted improved profitability on the
back of higher production and the NBS policy.” Speaking about the Company’s
strategy for the year going forward, Mr. Mehta said, “The Company is
poised to consolidate its TAN business and looking at taking its first steps in
the global market. We will also work on maximizing capacity utilization in the
forthcoming year, further enhance operational efficiencies and improve raw
material management.”
About DFPCL: DFPCL is a multi-product Company in the business of
manufacture and sale of Technical Ammonium Nitrate, Nitric Acid, Iso Propyl
Alcohol, Methanol, Nitro-Phosphate, Sulphur Bentonite and a basket of
outsourced specialty fertilisers. A market leader for Technical Ammonium
Nitrate, Iso-Propyl Alcohol (IPA) and Nitric Acid, the Company is the only
manufacturer of IPA in
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.95 |
|
|
1 |
Rs.72.12 |
|
Euro |
1 |
Rs.63.67 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
74 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.