1. Summary Information
|
|
|
Country |
|
|
Company Name |
DEEPAK FERTILISERS AND
PETROCHEMICALS CORPORATION LIMITED |
Principal Name 1 |
Mr. C. K. Mehta |
|
Status |
Good |
Principal Name 2 |
Mr.
S. C. Mehta |
|
|
|
Registration # |
11-21360 |
|
Street Address |
Opposite
Golf Course, Shastri Nagar, Yerawada, Pune -411006, |
||
|
Established Date |
31.05.1979 |
SIC Code |
-- |
|
Telephone# |
91-20-26684155/26684342/26684597/26684235/26458000 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-20-26687499/26683727 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Ammonia |
|
|
# of employees |
1050 (Approximately) |
Product Name 2 |
Methanol |
|
Paid up capital |
Rs.882,049,000/- |
Product Name 3 |
Nitric
Acids |
|
Shareholders |
Shareholding of Promoter and
Promoter Group - 42.61% Public Shareholding - 57.39% |
Banking |
State Bank of |
|
Public Limited Corp. |
YES |
Business Period |
32 years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
Aa (74) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associate |
|
Blue Shell
Investments Private Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
5,150,500,000 |
Current Liabilities |
2,316,500,000 |
|
Inventories |
1,116,300,000 |
Long-term Liabilities |
7,312,000,000
|
|
Fixed Assets |
7,587,300,000 |
Other Liabilities |
621,000,000 |
|
Deferred Assets |
0,000,000 |
Total Liabilities |
10,249,500,000 |
|
Invest& other Assets |
5,699,300,000 |
Retained Earnings |
8,421,900,000 |
|
|
|
Net Worth |
9,303,900,000 |
|
Total Assets |
19,553,400,000 |
Total Liab. & Equity |
19,553,400,000 |
|
Total Assets (Previous Year) |
17,471,082,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
12,879,800,000 |
Net Profit |
1,720,500,000 |
|
Sales(Previous yr) |
14,125,000,000 |
Net Profit(Prev.yr) |
1,487,000,000 |
MIRA
INFORM REPORT
|
Report Date : |
05.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
DEEPAK
FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED |
|
|
|
|
Registered Office : |
Opposite
Golf Course, Shastri Nagar, Yerawada, Pune-411 006, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
31.05.1979 |
|
|
|
|
Com. Reg. No.: |
11-21360 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24121MH1979PLC021360 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD10002G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACD1388D |
|
|
|
|
Legal Form : |
It is
a public limited liability company.
The company's shares are listed on the Stock Exchanges. |
|
|
|
|
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. |
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 30000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. Suparas Jain |
|
Designation : |
DGM Finance |
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 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Plot
No. K-1, MIDC Industrial Area, Taloja, A. V. – 410 208, District Raigad, |
|
Tel. No.: |
91-22-67684000 |
|
Fax No.: |
91-22-27412413 |
|
E Mail: |
|
|
|
|
|
Factory 2 : |
Plot
No. 32, Sector 16, |
|
|
|
|
Branch : |
Located at: |
DIRECTORS
|
Name : |
Mr. C. K. Mehta |
|
Designation : |
Chairman |
|
Qualification : |
Undergraduate |
|
Date of Appointment : |
31.05.1979 |
|
Other
Directorships :- |
|
|
|
|
|
Name : |
Mr. S. C. Mehta |
|
Designation : |
Vice
Chairman and Managing Director |
|
Qualification : |
B.
Com., M.B.A. ( |
|
Date of Appointment : |
04.09.1985 |
|
Other
Directorships :- |
|
|
|
|
|
Name : |
Mr. R. A. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. Basu |
|
Designation : |
Director |
|
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 |
|
|
|
|
Name : |
Mr. S. R. Wadhwa |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. S Rama Iyer |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Parul S.
Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. C. Mehta |
|
Designation : |
Director |
|
Qualification : |
B.
Sc. |
|
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. S. S. Marathe |
|
Date of Appointment : |
Director |
|
|
|
|
Name : |
Dr. Manu Seth |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Anil Sachdev |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. C K Mehta |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S C Mehta |
|
Designation : |
Vice Chairman and Managing Director |
|
|
|
|
Name : |
Dr. T K Chaterjee |
|
Designation : |
President- Strategic Initiatives and Projects |
|
|
|
|
Name : |
Mr. N D Doshi |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. R P Karnik |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. M C Goel |
|
Designation : |
Chief Executive Officer (Agri Specialities and Farming solutions) |
|
|
|
|
Name : |
Mr. T A Mehta |
|
Designation : |
Chief Executive Officer (Ishanya) |
|
|
|
|
Name : |
Mr. R Sriraman |
|
Designation : |
Senior Vice-President (Legal) and Company Secretary |
|
|
|
|
Name : |
Dr. A C Agugustine |
|
Designation : |
Senior Vice President (Human Resources) |
|
|
|
|
Name : |
Mr. K V Nayak |
|
Designation : |
Senior Vice President (Fertiliser) |
|
|
|
|
Name : |
Mr. G Arumugam |
|
Designation : |
Senior Vice President |
|
|
|
|
Name : |
Mr. V Y Kelkar |
|
Designation : |
Senior Vice President – Strategic Communications. |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
19,556,085 |
22.17 |
|
|
18,031,670 |
20.44 |
|
|
37,587,755 |
42.61 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
37,587,755 |
42.61 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
7,153,711 |
8.11 |
|
|
15,395 |
0.02 |
|
|
1,323,594 |
1.50 |
|
|
10,154,352 |
11.51 |
|
|
18,647,052 |
21.14 |
|
|
|
|
|
|
6,124,481 |
6.94 |
|
|
|
|
|
|
19,893,593 |
22.55 |
|
|
3,090,586 |
3.50 |
|
|
2,861,476 |
3.24 |
|
|
22,590 |
0.03 |
|
|
2,654,136 |
3.01 |
|
|
184,750 |
0.21 |
|
|
31,970,136 |
36.25 |
|
Total Public shareholding (B) |
50,617,188 |
57.39 |
|
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 |
- |
(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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|
|
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|
Products : |
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|
|
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Brand Names : |
|
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Exports : |
|
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|
Products : |
|
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|
Countries : |
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|
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|
Imports : |
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|
Products : |
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||||||||||||||
|
Countries : |
|
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|
||||||||||||||
|
Terms : |
|
||||||||||||||
|
Purchasing : |
L/C,
D/A and D/P |
PRODUCTION STATUS
As on 31.03.2009
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Ammonia |
(MT) |
125400 |
125400 |
112745 |
|
CNA |
(MT) |
79200 |
79200 |
84971 |
|
DNA |
(MT) |
297000 |
297000 |
235964 |
|
Methanol |
(MT) |
100000 |
100000 |
1207 |
|
IPA |
(MT) |
70000 |
70000 |
51217 |
|
Propane |
(MT) |
-- |
-- |
9298 |
|
Crude IPE |
(MT) |
-- |
-- |
1443 |
|
AN |
(MT) |
132000 |
100000 |
117366 |
|
CO2 |
(MT) |
33000 |
33000 |
21516 |
|
ANP |
(MT) |
229500 |
229500 |
57378 |
|
|
(MT) |
25000 |
12650 |
554 |
|
Power (KWH) |
(MT) |
87600000 |
87600000 |
16342395 |
GENERAL INFORMATION
|
Customers : |
· Methanol · Nitric Acid · Strong Nitric Acid (SNA) · Dry Ice · Dilute Nitric Acid (DNA) · Concentrated Nitric Acid (CAN) · Low Density Ammonium Nitrate
(LDAN) |
|
|
|
|
No. of Employees : |
1050 (Approximately) |
|
|
|
|
Bankers : |
|
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
B. K.
Khare and Company Chartered
Accountants |
|
Address : |
Mumbai,
|
|
|
|
|
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 Limioted ·
Storewell
Credits And Capital Private Limited ·
High
Tide Investments Private Limited ·
Deepak
Asset Reconstruction Private Limited ·
Mahadhan
Investment And Finance Private Limited ·
Ishanya
Foundation |
|
|
|
|
Subsidiaries |
·
Smartchem Technologies Limited ·
Deepak Nitrochem Pty. Limited |
CAPITAL STRUCTURE
As on 31.03.2009
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 |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
882.000 |
882.049 |
882.049 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8421.900 |
7149.087 |
6105.989 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9303.900 |
8031.136 |
6988.038 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6090.400 |
4460.759 |
1983.881 |
|
|
2] Unsecured Loans |
1221.600 |
1616.755 |
1509.914 |
|
|
TOTAL BORROWING |
7312.000 |
6077.514 |
3493.795 |
|
|
DEFERRED TAX LIABILITIES |
621.000 |
650.548 |
616.878 |
|
|
|
|
|
|
|
|
TOTAL |
17236.900 |
14759.198 |
11098.711 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7587.300 |
7291.772 |
5515.352 |
|
|
Capital work-in-progress |
4141.600 |
2435.032 |
2481.945 |
|
|
|
|
|
|
|
|
INVESTMENT |
1557.700 |
1544.569 |
1427.452 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1116.300
|
985.404
|
791.239
|
|
|
Sundry Debtors |
1981.300
|
2719.452
|
2168.123
|
|
|
Cash & Bank Balances |
2062.400
|
1589.523
|
300.442
|
|
|
Other Current Assets |
0.000
|
32.785
|
10.344
|
|
|
Loans & Advances |
1106.800
|
867.057
|
903.167
|
|
Total
Current Assets |
6266.800
|
6194.221 |
4173.315 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
|
|
|
Other Current Liabilities |
1676.500
|
2188.487 |
2073.682 |
|
|
Provisions |
640.000
|
523.397 |
437.753 |
|
Total
Current Liabilities |
2316.500
|
2711.884 |
2511.435 |
|
|
Net Current Assets |
3950.300
|
3482.337 |
1661.880 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
5.488 |
12.082 |
|
|
|
|
|
|
|
|
TOTAL |
17236.900 |
14759.198 |
11098.711 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
12879.800 |
14125.000 |
10634.000 |
|
|
|
Other Income |
699.400 |
365.300 |
214.000 |
|
|
|
TOTAL (A) |
13579.200 |
14490.300 |
10848.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw material |
7666.800 |
8863.400 |
6745.800 |
|
|
|
Power and fuel cost |
0.000 |
167.100 |
185.600 |
|
|
|
Employee cost |
793.000 |
681.600 |
530.600 |
|
|
|
Other manufacturing expense |
895.400 |
590.700 |
418.500 |
|
|
|
Selling and administration expenses
|
240.800 |
363.500 |
288.100 |
|
|
|
Miscellaneous expenses |
556.400 |
697.300 |
289.800 |
|
|
|
Increase or decrease in stocks |
(54.800) |
80.700 |
270.100 |
|
|
|
TOTAL (B) |
10097.600 |
11444.300 |
8728.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3481.600 |
3046.000 |
2119.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES/ INTEREST (D) |
463.300 |
404.700 |
159.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3018.300 |
2641.300 |
1960.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
643.300 |
523.800 |
447.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2375.000 |
2117.500 |
1513.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
654.500 |
630.500 |
510.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1720.500 |
1487.000 |
1002.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5117.800 |
4195.000 |
3673.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
746.500 |
564.200 |
480.700 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
6091.800 |
5117.800 |
4195.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value |
NA |
456.782 |
613.004 |
|
|
|
Other Earnings |
NA |
84.605 |
57.264 |
|
|
TOTAL EARNINGS |
NA |
541.387 |
670.268 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
1420.775 |
62.715 |
|
|
|
Stores & Spares |
NA |
51.694 |
39.384 |
|
|
|
Capital Goods |
NA |
7.217 |
437.300 |
|
|
|
Traded Goods |
NA |
3138.806 |
2292.152 |
|
|
TOTAL IMPORTS |
NA |
4618.492 |
2831.551 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
18.95 |
16.55 |
10.77 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
|
Net Sales |
3505.400 |
4107.700 |
3750.300 |
|
Total Expenditure |
2581.800 |
3341.600 |
2931.400 |
|
PBIDT (Excl OI) |
923.600 |
766.100 |
818.900 |
|
Other Income |
89.200 |
69.100 |
82.100 |
|
Operating Profit |
1012.800 |
835.200 |
901.000 |
|
Interest |
111.100 |
90.400 |
113.800 |
|
Exceptional Items |
0.000 |
0.000 |
(33.800) |
|
PBDT |
901.700 |
744.800 |
753.400 |
|
Depreciation |
166.700 |
170.400 |
183.700 |
|
Profit Before Tax |
735.000 |
574.400 |
569.700 |
|
Tax |
213.000 |
160.000 |
167.100 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
522.000 |
414.400 |
402.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
522.000 |
414.400 |
402.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
12.67
|
10.26 |
9.24 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
18.44
|
14.99 |
14.23 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.14
|
15.70 |
15.62 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.26 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.03
|
1.09 |
0.86 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.70
|
2.28 |
1.66 |
LOCAL AGENCY FURTHER INFORMATION
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.
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 partly redeemed the Debentures
on the due date 15th September, 2008 and 30th September,2008 respectively.
During the year, the Company has also issued 10.80% 1,250
Secured Redeemable Non-Convertible Debentures of Rs. 1.000 Million each
aggregating Rs. 1250.000 Millions in favour of Life Insurance Corporation of
India Limited and the same are listed on the Bombay Stock Exchange Limited.
MANAGEMENT
DISCUSSION AND ANALYSIS
Macro-economic
scenario
The year that went by saw unprecedented volatility in all
facets of the economy, be it commodity prices, forex or
equity markets.
The Indian economy, on an average, grew 8-9 percent during
the period 2003-08 with a GDP growth of 6.7 percent in 2008-09. While inflation
touched 12 percent, today it stands
below 1 percent. The capital market was extremely volatile, adversely affecting
share prices, but recovered substantially during the last couple of months.
Global growth rate during January 2009 was 0.5 percent. Advanced economies
showed a negative growth of 2 percent while emerging economies showed a
positive growth of 3.3 percent during the same period.
Capital inflows came down from USD 82 billion between
April-December 2007 to USD 15.3 billion for the same period in 2008. During
2007-08 net inflows from FIIs stood at a positive USD 20.3 billion while in
2008-09 fell to a negative 15.3 billion. However, with the equity market
showing bullish trends, FII inflow is expected to increase over the near
future. A contraction in the capital flow affected financing to corporates during
the year 2008-09 as compared to the previous year. On the positive side, riding
on domestic demand, the growth of the Indian economy continues to be robust.
Oil prices which touched around USD 150/barrel, declined to less than USD
40/barrel and are hovering around USD 70/barrel currently. Strengthening of
rupee against US dollar reversed and rupee depreciated by more than 25 percent
against the USD.
During the year 2008-09, commodity prices peaked. DAP,
Phosphoric Acid, Ammonia, Urea and
Export-intensive industries
faced serious problems with consequent job losses in the sector post the global
economic meltdown. However, the weakening of the rupee against the USD slightly
improved the situation.
The economy provided challenging opportunities for Indian
companies to demonstrate their competitive advantages and competencies.
Going forward,
Macro-linkages
to the Company
Oil
and gas
The rising trend in global oil prices witnessed during 2008
reversed in 2009. Prices of Naphtha, Fuel Oil and Propylene also declined.
However, reduced input costs could not fully compensate the fall in finished
goods’ prices, which are now in the recovery mode.
The massive flow of RIL’s KG basin gas brought a new era in
the Indian hydrocarbon industry. Additional gas allocation to various sectors
has begun. 40 mmscmd gas from KG basin in the first phase will ensure easy
availability of gas to all sectors. While the Company could tie-up with some
cost-competitive RLNG/PMT gas suppliers, the positive recommendations on
priority allocation of KG basin gas are awaiting final clearances. In the
meanwhile, the Company is closely examining further offers of RLNG and enhanced
ONGC gas supplies.
With these positive developments, the Company is confident
about the availability of gas for sustaining full capacity utilisation. Gas
from new sources will be priced at the market rate and its impact would be
partially passed on to the customers and partially compensated by enhancing
capacity utilisation, increasing efficiency and
replacing costly liquid fuel by gas.
Mining
and infrastructure
The Company has been the market leader in
Agri-business
Improving farm economics holds the key to Indian economic development
as more than 66 percent of the population depends on agriculture. Organised
retail of grocery is expected to grow and will thus need a robustsupply chain
for fruits and vegetables. The ever increasing demand for these products, both
in the domestic and international markets provides an excellent opportunity for
the Company. Keeping this scenario in mind, the
Company initiated an integrated nutrient and crop management
thrust for farmers, including the manufacturing of customised fertilisers by implementing
the license obtained to manufacture. In the meanwhile, the Company would
continue its various initiatives taken through its Mahadhan Saarrthie Centres
for rendering advisory services to farmers to enhance quality and productivity
for achieving global competitiveness. The Company has begun earnest work with
farmers enabling several Mahadhan Saarrthie members to acquire GlobalGAP
certification ensuring healthy agri practices.
A growing body of farmers are today getting fully convinced
about the support provided by the Company on various fronts to improve both the
quality and the quantity of yield from their land and the prices obtained for
the end produce.
Owing to a significant rise in international fertiliser
prices in 2008-09, the subsidy burden on the Government had increased many fold
and the Government issued fertilizer bonds to help manage its liquidity
constraints. With the substantial fall in global fertiliser prices now, it is
expected that the Government will not resort to further bonds to defray subsidy
payments.
Chemicals
business
The customs duty on chemicals remained static at 7.5
percent. The Company is the market leader in Iso Propyl Alcohol (IPA), Nitric
Acid and an important player in Methanol and CO2. The Company’s customer relationships,
loyalty and ability to service the market through domestic geographical
advantages are proving to be key strengths.
Internationally, the prices of most bulk chemicals have been
highly volatile. Global Methanol prices too remained highly volatile and went
below USD 200/MT during 2009. More than 50 percent of the domestic demand for
methanol was met through imports. On account of natural gas constraints, both
in terms of price and availability, no new domestic capacities in methanol were
added in the recent past.
Prices of IPA have been fluctuating in the international
market. Following the global meltdown impact, resulting in a downward trend in
the market prices, the Company faced stiff challenges from low priced imports.
The Company has received the US Pharmacopoeia certification under the excipient
verification programme for its IPA product and enjoys the distinction of being
the first company in the world to have received this certification.
The Company also developed cosmetic grade IPA, which is
being test marketed and the reports received are encouraging. Both these
measures will help place some of the Company’s products in the premium
segments. The Company’s Nitric Acid enjoys a good market, being used in dyes,
intermediates and pharma sectors.
Retail
and value-added real estate (VARE) business
The retail sector began the year on a very robust note.
During the meltdown, there was a distinct slow down in discretionary consumer
spending which affected categories like furniture, durables and home products
among others. However, during the last couple of months, a distinct pick up has
been noticed across key consumer categories with a gradual rise in
discretionary spending. Consumer confidence is on the mend. As such, per capita
income is expected to rise around 3 percent over the next two years.
Detailed
financial and operational analysis
Financial
analysis
The total revenue increased 34 percent from Rs. 10813.100
Millions in 2007-08 to Rs. 14481.000 Millions in 2008-09. Profit before tax increased
40 percent from Rs. 1515.100 Millions in 2007-08 to Rs. 2120.000 Millisons in
2008-09 and net profit grew 48 percent from Rs. 1002.700 Millions in 2007- 08
to Rs. 1487.000 Millions in 2008-09. Earnings per share improved by 48 percent
from Rs. 11.37 in the previous year to Rs.16.86 in 2008-09. This growth was
achieved by taking advantage of market opportunities throughin-house
manufacturing and strategic outsourcing.
The Company’s financial position continues to remain sound.
The average debt cost stood at 8.31 percent for 2008-09 as against 7.45 percent
for 2007-08. During 2008-09, long term funds of Rs. 1040.000 Millions were
borrowed for part-financing the project cost. In addition, there was a short
term borrowing of Rs. 1200.000 Millions. The Company also raised Rs. 1250.000
Millions by issuing 10.80 percent privately placed NCDs. In 2007-08, while the
outstanding debt stood at Rs. 3493.800 Millions, during 2008-09 debt rose to
Rs. 6077.500 Millions Interest for the funds raised for project/ capex items
were capitalised. The debt-equity ratio stood at 0.55 in 2008-09 as compared to
0.37 in the previous year. The current ratio, including liquid investments, was
at 2.28 in 2008-09 as compared to 1.81 in the previous year.
Forex management emerged as a challenge in 2008-09 and
appropriate measures were taken in response. The
Company has had no exposure to the derivative product
volatilities during the year.
Operational
analysis
Overall, during the year, shortage of natural gas at the
Taloja plant continued and was partially compensated by purchasing LNG and
outsourcing Ammonia for maintaining down-stream products. The prices of fuel
oil, used for generating process steam, initially went up but subsequently came
down. The price of precious metals used as catalysts also came down. The
capacity of AN plant was increased from 90,000 MTPA to 1,32,000 MTPA, requiring
a plant closure for 59 days for hook up. The capacity of Liquid CO2 was also
increased from 16,500 MTPA to 33,000 MTPA during the year. During 2008-09,
Sulphur Bentonite plant started operations and the product was well received in
the market.
Production
and sales
The total bulk fertiliser sales volume for 2007-08 was
3,18,680 MT and 2,99,270 MT in 2008-09. The non-availability of Phosphoric Acid
and the sharp increase in international prices impacted volume of own
manufactured Nitro Phosphate Fertilisers. The availability of mixture
fertilisers was low due to the shortage of input material to these
manufacturers. Sales of traded bulk fertilisers grew from Rs. 2297.000 Millions
in 2007-08 to Rs. 3374.400 Millions in 2008-09.
Sales volume of industrial chemicals dropped from 2,83,260
MT in 2007-08 to 2,70,896 MT in 2008-09, but sales in value terms grew 4.37
percent. The details of production and sales during 2007-08 and 2008-09 are as
follows:
Segment-wise
and product-wise business review
Agri-business
The total revenue for the agri-business segment stood at Rs.
5768.000 Millions in 2008-09 as against Rs. 2981.900 Millions in 2007-08.
The agri-business continued its focus on integrated nutrient
management and providing advisory services to the farmers, through Mahadhan
Saarrthie Centres, for enhancing quality and farm productivity. The total
number of Mahadhan Saarrthie Centres as on March 31, 2009, stood at nine with
around 5,000 hectares of cultivable land and a total membership of 5,500
farmers. The success of Mahadhan Saarrthie initiatives and the excellent
marketing strategies adopted by the Company, resulted in an increase of around
144 percent in speciality fertilisers sales from Rs. 280.600 Millions in
2007-08 to Rs. 685.300 Millions in 2008-09. The Company successfully commenced
exporting fruits and vegetables to the
Chemicals
segment
The total revenue for the chemical segment stood at Rs.
8114.900 Millions in 2008-09 as against Rs. 7524.300 Millions in 2007-08.
Methanol
During the year, due to non-availability of feedstock and
uneconomical international prices, Methanol production was restricted to 12,207
MT as compared to 31,548 MT of the previous year. Traded Methanol grew by about
4 percent at 54,218 MT as against 52,351 MT of the previous year. The prices
dropped to an all time low in the second half of the year with some improvement
during the latter part of the year.
IPA
During the year, the Company recorded the highest production
of IPA and the highest sales of drummed IPA. The Company’s product was well accepted
in the domestic and international market leading to market leadership in this
product. The total production of IPA was 51,217 MT as compared to 49,447 MT in
the previous year. During the year, the sales volume was 51,264 MT (including
exports of 4,080 MT) when compared with 52,239 MT (including exports of 9,329
MT) of the previous year.
Acids
The sales volume of Nitric Acid of different grades was
1,09,544 MT in 2007-08 and 1,14,862 MT in 2008-09. The Company also recorded
the highest production of CNA in 2008-09.
Technical
Ammonium Nitrate
Production of Ammonium Nitrate remained stable during the
year. The sales volume of Technical Ammonium Nitrate came down marginally from
1,17,907 MT in 2007-08 to 1,16,724 MT (including 200 MT of re-export) in
2008-09, following the plant closure for hook-up of the retrofitted capacities.
However, on account of better price realisations, the sales value increased by
30 percent from Rs. 1651.100 Millions in 2007-08 to Rs. 2147.200 Millions in
2008-09.
Liquid
CO2
Total sales volume of CO2, a by-product of Ammonia, improved
by 39 percent as compared to the previous year.
Demand for this product remained reasonably robust.
Hydrogen
Sales volume of hydrogen, a by-product of Ammonia, grew by
12 percent when compared to the previous year.
Exports
During 2008-09, exports of Ammonium Nitrate increased from
Rs. 54.800 Millions in 2007-08 to Rs. 171.600 Millions (including Rs. 7.000
Millions of re-export). Export of IPA was curtailed to Rs. 203.100 Millions as
against Rs. 415.100 Millions in 2007-08 on account of strong domestic demand.
Export of other products came down from Rs. 156.300 Millions in 2007-08 to Rs.
97.000 Millions in 2008-09.
Retail
and value-added real estate
During 2008-09, Ishanya –
5,000 brands are available. Ishanya has witnessed nearly 1.5
million footfalls since its opening and has a record 35 percent conversion,
making it one of the most successful retail destinations in its category.
Ishanya has been able to leverage its brand and in addition to normal retail
spaces, it has increased revenue from specially designed areas like the
amphitheatre, a seminar hall, exhibition spaces and advertising spaces among
others.
Current
and future projects
Ammonia
storage tank
The 15,000 MT Ammonia storage tank project undertaken by the
Company at JNPT to facilitate imports has been completed except for small
auxiliary work.
Dilute
nitric acid
Erection and commissioning of the 450 TPD DNA plant
undertaken by the Company is in progress. The main components of the plant as
well as supplementary equipment have been acquired. It is expected that by the
second quarter of 2009-10, the plant will be put to commercial use.
Technical
Ammonium Nitrate
Basic engineering and major portion of detailed engineering
have been completed for the Company’s new project to set up 3,00,000 MTPA TAN
plant at Taloja. Civil engineering contract was awarded and erection of some of
the equipment started. Long delivery items have been ordered and the project is
expected to be completed by the third quarter of 2010-11.
Internal
controls
The Company has a robust internal audit system ensuring
effective internal controls. The concept of ‘Control Effectiveness Index’ (CEI)
is being used for each functional area to benchmark control and performance
levels. The internal Auditors’ Reports are regularly reviewed by the Audit
Committee of the Board. The Company has also adopted COSO system of internal
control. SAP is used for better control, MIS and effectiveness. In addition,
the Company has also taken other initiatives to make it an innovative,
competitive and strong organisation fully
capable of meeting global competition.
Enhanced
value to the shareholders
The Company enjoys strong competitive advantages across the
sectors and markets in which it operates. Besides enjoying a strong brand pull
for its products, its marketing network and relationships give it a formidable
strength in the market. The Company leverages its intellectual capital acquired
through long years of familiarity and expertise in operating chemicals and
fertiliser plants well, as evidenced through its ability to enhance capacity at
relatively low costs and high skill. Its ability to ride on the country’s
macroeconomic trends and to fully exploit the markets that it competes in,
arises both from its marketing and technology-led intellectual capital.
The Company continues its thrust to achieve credible
corporate growth through transparent financial management and took a number of
initiatives to enhance shareholder value. Besides, continual business investments
will help further strengthen shareholder value over the long term.
Cautionary
statement
Statements in this report, particularly those which relate
to Management Discussion and Analysis, describing the Company’s objectives,
projections, estimates and expectations, may constitute “forward looking
statements” within the meaning of applicable laws and regulations. Actual
results might differ from those either expressed or implied.
Corporate
social responsibility
Over the years, the Company has fulfilled its deep social
commitment through the Ishanya Foundation at Pune and Taloja in Maharashtra and
Deepak Foundation at Vadodara,
Ishanya
Foundation
The Ishanya Foundation focuses on women empowerment, education
and health.
The Foundation established an ophthalmology OPD — supported
by a doctor, two optometrists, a counsellor and the latest diagnostic
facilities — at the Chindran village (Taloja). It also conducts eye camps at
the
The Diabetic Centre at the
The Foundation trained women in tailoring at subsidized
rates and along with a city-based corporate organised ‘the Yellow Ribbon
Pre-Diwali NGO Fair’ at Ishanya, Pune, where 36 NGOs exhibited and sold
products including
home and personal accessories, candles, jewellery, greeting
cards, sweets, chocolates and food items.
The Foundation organised entertainment and cultural
activities for the ‘Youth of the Navkshitij’, which helps
differently-abled individuals.
The Foundation, under its livelihood programmes, sponsored a
three-month training programme for 60 students in hospitality management,
bedside patient management and ITeS computer course conducted by the Dr.
Reddy’s Foundation.
The Foundation also sponsored a three-month professional
beautician course and healthcare comprising training on mehendi design,
spoken English and personality development in association with Veta, a premier
academy for spoken English and personality development. About 67 students
registered for the course.
Deepak
Foundation
The Deepak Foundation’s dedicated teams provided curative
and preventive health services to about 700 tribal villages across the Vadodara
district; its hospital at Nandesari served 8,061 OPD patients and 1,013 indoor
patients and successfully help deliver 439 healthy babies.
The Foundation trained local women volunteers on the
Accredited Social Health Activist (ASHA) module under the National Rural Health
Mission (NRHM) and provided two-wheelers to women outreach workers, a
pioneering
non-government initiative in
The Confederation of Indian Industry’s (CII) ‘Women Exemplar
Award 2009’ was presented to the Foundation staff member, Ms. Manorama Jaiswal
by Mr. Omar Abdullah, Honourable Chief Minister,
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31,12.2010
(Rs.
In Millions)
|
Particular |
31.12.2010 Quarter
Ended |
31.12.2010 9
Months Ended |
|
|
|
|
|
Sales |
3941.500 |
11887.500 |
|
Less: Excise Duty |
238.200 |
652.900 |
|
1. (a) Net Sales |
3703.300 |
11234.600 |
|
(b) Other Income from Operations (incl. realty income) |
47.000 |
128.800 |
|
Income from Operations |
3750.300 |
11363.400 |
|
2. Expenditure |
|
|
|
a) Decrease/(Increase) in Stock in Trade |
(33.100) |
(58.100) |
|
b) Consumption of Raw Materials |
1619.200 |
4755.700 |
|
c) Traded Goods Purchases |
606.400 |
2095.100 |
|
d) Employee Cost |
291.100 |
754.800 |
|
e) Depreciation |
183.700 |
520.800 |
|
f) Other Expenditure |
447.800 |
1307.300 |
|
g) Total |
3115.100 |
9375.600 |
|
3. Profit from Operations before Other Income, Interest and
Exceptional Items (1-2) |
635.200 |
1987.800 |
|
4. Other Income |
|
|
|
-Dividend from Subsidiary |
- |
30.600 |
|
-Others |
82.100 |
209.800 |
|
5. Profit before Interest and Exceptional Items (3+4) |
717.300 |
2228.200 |
|
6. Interest |
113.800 |
315.300 |
|
8. Exceptional Items |
(33.800) |
(33.800) |
|
9. Profit from Ordinary Activities before tax (7+8) |
569.700 |
1879.100 |
|
10. Tax Expense |
167.100 |
540.100 |
|
11. Net Profit from Ordinary Activities after Tax (9-10) |
402.600 |
1339.000 |
|
12. Extraordinary Items (net of tax expense) |
- |
- |
|
13. Net Profit for the Period (11-12) |
402.600 |
1339.000 |
|
14. Paid-up Equity Share Capital (Face Value of Rs.10/- each) |
882.000 |
882.000 |
|
15. Reserves excluding Revaluation Reserves |
- |
- |
|
16. Earnings Per Share (EPS) |
|
|
|
a) Basic and diluted EPS (before Extraordinary items) |
4.56 |
15.18 |
|
b) Basic and diluted EPS (after Extraordinary items) |
4.56 |
15.18 |
|
17. Public Shareholding |
|
|
|
- Number of Shares |
50617188 |
50617188 |
|
- Percentage of Shareholding (rounded off) |
57 |
57 |
|
18. Promoters and Promoter Group Shareholding |
|
|
|
a) Pledged/ Encumbered |
|
|
|
- Number of Shares |
- |
- |
|
Percentage of Shares |
- |
- |
|
b) Non-Encumbered |
|
|
|
- Number of Shares |
37587755 |
37587755 |
|
-Percentage of Shares (as a % of the total Shareholding of promoter
and promoter group) |
100 |
100 |
|
Percentage of Shares (as a % of the total Share Capital of the
Company) |
43 |
43 |
* Non Annualised.
NOTES:
1. Exceptional items for the quarter represent Rs.3380.900 Millions being
cost of assets restructured in the real estate business (previous year’s
figures include gain of Rs.257.100 Millions (net) arising out of sale of
leasehold land net of cost of assets restructured in real estate business).
2. Previous period’s figures have been regrouped wherever necessary to
conform to current period’s figures.
3. The above unaudited financial results for the quarter ended 31st
December, 2010 have been subjected to a limited review by the Statutory
Auditors of the Company.
4. There was no investor complaint pending at the beginning of the
quarter. The Company, during the quarter, received five complaints and the same
have been resolved.
SEGMENT-WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs.
In Millions)
|
Particulars |
31.12.2010 |
31.12.2010 |
|
Quarter
Ended |
9
Months Ended |
|
|
1. Segment Revenue |
|
|
|
a) Chemicals |
|
|
|
Manufactured |
2629.600 |
7287.700 |
|
Traded |
0.000 |
0.000 |
|
Total |
2629.600 |
7287.700 |
|
|
|
|
|
b) Fertilisers |
|
|
|
Manufactured |
487.900 |
1949..300 |
|
Traded |
714.800 |
2433.300 |
|
Total |
1202.700 |
4382.600 |
|
|
|
|
|
c) Realty |
27.500 |
89.300 |
|
d) Others |
5.000 |
57.000 |
|
Total |
3864.800 |
11816.600 |
|
Less :Inter Segment Revenue |
114.500 |
453.200 |
|
Net Sales/Income from Operations before tax and interest from |
3750.300 |
11363.400 |
|
a) Chemicals |
799.200 |
2191.500 |
|
b) Fertilisers |
42.500 |
309.500 |
|
c) Realty |
(13.300) |
(42.000) |
|
d) Others |
(4.700) |
29.900 |
|
Total |
823.700 |
2488.900 |
|
Less: |
|
|
|
i) Interest |
113.800 |
315.300 |
|
ii) Other unallocable expenditure net of unallocable income |
140.200 |
294.500 |
|
Total Profit Before Tax from Ordinary Activities |
569.700 |
1879.100 |
|
3. Capital Employed |
|
|
|
a) Chemicals |
11170.500 |
11170.500 |
|
b) Fertilisers |
1917.200 |
1917.200 |
|
c) Realty |
2383.400 |
2383.400 |
|
d) Others |
397.500 |
397.500 |
|
e) Unallocated |
3425.300 |
3425.300 |
|
Total |
19293.900 |
19293.900 |
DETAILS OF ASSETS AND LIABILITIES
(Rs. in Millions)
|
Particulars |
31.12.2010 |
|
Shareholders Funds |
|
|
(a) Capital |
882.000 |
|
(b) Reserves and Surplus |
9765.000 |
|
Loan Funds |
7793.100 |
|
Deferred Tax Liability |
853.800 |
|
Total |
19293.900 |
|
Fixed Assets (net of
accumulated depreciation) |
9064.100 |
|
Capital Work-in Progress |
3775.600 |
|
Investments |
1982.900 |
|
Current Assets, Loans and
Advances |
|
|
(a) Interest Accrued on
Deposits |
30.300 |
|
(b) Inventories |
1257.400 |
|
(c) Sundry Debtors |
2868.400 |
|
(d) Cash and Bank Balances |
1260.500 |
|
(e) Loans and Advances |
855.700 |
|
|
6272.300 |
|
Less : Current Liabilities and
Provisions |
|
|
(a) Liabilities |
1612.200 |
|
(b) Provisions |
188.800 |
|
|
1801.000 |
|
Net Current Assets |
4471.300 |
|
Total |
19293.900 |
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
Products:
Ø
Methanol
Ø
Nitric Acid
Ø
Liquid Carbon Dioxide
Ø
Ammoniu Nitrate
Ø
Isopropyl Alcohol
Deepak Fertilisers and Petrochemicals Corporation Limited is
one of the largest producers of Methanol in
Assured Year-Round Supply
Consistent supply of raw material, natural gas from Mumbai High gas fields is
assured through DFPCL's own pipeline. A methanol storage facility of 10,000 MT
on site ensures uninterrupted supply.
International Technology
World's state of the art know-how and technology from ICI/Davy McKee, UK
guarantees consistent high purity methanol meeting ASTM D 1152 1989 and IS
517:1986 (Pure Grade).
Recognition
and Awards:
US
Pharmacopoeia Certification
Our Company has received the US Pharmacopoeia certification
under the excipient verification program for its IPA product and enjoys the
distinction of being the first company in the world to have received this
certification.
Dun
and Bradstreet Award
DFPCL is ranked 5 th as per the total income in the
Chemicals sector by
Deepak Fertilisers and Petrochemicals' unwavering commitment
to quality, safety and community development is reflected by the numerous
awards we have received. A few of these awards recognising DFPCL are listed
below:
British
Safety Council Award
The British Safety Council Award is awarded annually to
organisations that have attained high health and safety standards. The awards
are judged by comparing safety records (including accident rates) with others
in the same industry.
The award has been conferred upon DFPCL for the third
consecutive year (2000-2001) for their expertise and effort in maintaining a
good record on health and safety in the plant.
Environment,
Agriculture and Rural Development Award
This award is for outstanding contribution in the field of:
Ø
Control of air and water pollution in
industry
Ø
Rural development for the benefit of
the poorer sections of the people
Ø
Agriculture for highest productivity of
a crop
The Indian Merchants' Chamber has conferred its
'environment, agriculture and rural development' award for 2001 to Deepak
Fertilisers.
The award decided by the trustees of the Chamber's 'diamond
jubilee endowment trust', was given to DFPCL for "its outstanding
contribution to promoting the growth of
The area of study was - Women's Dairy Co-operative and Self
Help Groups (Savings and Credit Society). Both these rural development programs
were recognised. The award ceremony was organised in Mumbai on 02 May, 2002.
Annual
Fertilisers Association of
The Fertiliser Association of India awards are given to provide
incentives for high quality fundamental or applied research amongst the Indian
scientists in the field of Fertiliser Use Research.
DFPCL was honoured with three awards, in various categories
at the 2000-2001 Annual Seminar of Fertiliser Association of
Ø
Shri. T. D. Mathwani, Sr. Vice
President received the FAI Award for Improvement in Overall Performance of the
Taloja Plant.
Ø
Shri V. M Deshpande, Vice President,
Marketing - Agri Inputs received the FAI runner up Award for the paper "IT
Applications in Fertiliser Marketing".
Ø
Shri Tushar Mehta, Communication and
Publicity Department, won the FAI runner up award for the video film "
National
Safety Council of
National Safety Council of India declared DFPCL the winner
of the Prashansa Puraskar for
developing and implementing very effective Occupational Safety and Health
Management Systems and Procedures and achieving very good performance.
National Safety Council of India is a member of the Asia-Pacific Occupational
Safety and Health Organization (APOSHO) is an international body composed of
non-profit professional organizations devoted to the prevention of occupational
accidents and diseases.
PRESS RELEASE:
Deepak Fertilisers And Petrochemicals Corporation’s Operating
Profit Before Tax up 31%
Highlights:
- Profit Before Tax and exceptional items
up 31 % for Q3 FY11
- PAT not comparable with the
corresponding quarter for FY10 owing to net exceptional gain of Rs.
257.100 millions in Q3 FY10
- Chemicals business grows 23% for Q3 FY11
- Company’s own manufactured component of
sales grew 20% for Q3 FY11
Mumbai
/ Pune, January 25, 2011: Deepak Fertilisers And Petrochemicals
Corporation Limited (DFPCL) today announced that for the quarter-ended December
31, 2010 (Q3 FY11), Income from operations rose to Rs. 3750.300 millions against
Rs. 3668.400 millions in Q3 FY10. The Company’s own manufactured component of
the sales grew 20% for Q3 FY11.
Profit Before Tax (before exceptional items) (PBT) grew 31% to
Rs. 603.500 millions from Rs. 461.200 millions in the corresponding quarter of
the previous financial year. Profit After Tax (PAT) stood at Rs. 402.600
millions for Q3 FY11 against Rs. 528.600 millions in Q3 FY10. PAT for the
quarter under review is not comparable with the corresponding quarter for the
previous financial year given the exceptional gain of Rs. 257.100 crore (net)
arising from sale of surplus land in Q3 FY10.
The Chemicals business registered a growth of 23% for Q3
FY11 to Rs. 2629.600 millions from Rs. 2134.100 millions in the corresponding
quarter for FY10. Sales for the fertiliser business stood at Rs. 1202.700
millions for Q3 FY11 against Rs. 1576.400 millions in Q3 FY10. The own
manufactured fertiliser component of sales was higher in Q3 FY11 than Q3 FY10
by 9%. The trading component of fertiliser sales was lower mainly on account of
lower prices for bulk fertilisers like MOP. The Company also announced that it
had introduced an enhanced version of its Nitro Phosphate fertiliser product,
Mahadhan Power, with the grading of 24:24:0 from its earlier 23:23:0.
For the nine months ended December 31, 2010, Income from
operations grew 18% to Rs. 11363.400 millions against Rs. 9641.500 crore in the
corresponding period for FY10. Profit Before Tax (before exceptional items)
(PBT) for this nine month period under review grew 25% to Rs. 1912.900 millions
against Rs. 1528.600 millions in corresponding period of FY 10. Profit After
Tax (PAT) for the nine months ended December 31, 2010 grew to Rs. 1339.000
millions against Rs. 1278.900 millions for the corresponding period ended
December 31, 2010. PAT was not comparable given the exceptional item of Rs.
257.100 crore (net) arising from sale of land in Q3 FY10.
The Chemicals business of the Company grew 22% to Rs.
7287.700 millions in terms of sales revenue during the nine months under review
for FY 11, against Rs. 5988.100 millions for the comparable period for the
previous financial year. The Fertiliser business grew 19% to Rs. 4382.600
millions in terms of sales revenue during the nine months under review against
Rs. 3686.700 millions for the corresponding period in the previous financial
year.
DFPCL’s mall venture, High Street Ishanya, is progressing
well in terms of new tenant acquisitions with new sign-ons in categories like a
hypermarket, and some key lifestyle / fashion and food category brands.
Mr. Sailesh C. Mehta, Vice-Chairman and Managing Director,
DFPCL, said: “DFPCL’s thrust in the coming months will be on improving and
consolidating its position in its chemicals business, especially in Technical
Ammonium Nitrate. We are now looking for strong growth opportunities in our
chosen sectors like agri/food, mining and chemicals for our next phase.”
About
DFPCL:
DFPCL is a multi-product Company in the business of
manufacture and sale of Methanol, Nitric Acid, Iso Propyl Alcohol, Technical
Ammonium Nitrate, Nitro-Phosphate and Sulphur Bentonite fertiliser. It also
offers a basket of outsourced specialty fertilisers. DFPCL products meet stringent
international standards and the Company’s plant efficiencies are benchmarked to
some of the best in the world. All its business operations are supported by
ERP/SAP 6.0.
It is the only Company in the Fertiliser and Chemical
sectors from
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.99 |
|
|
1 |
Rs.73.24 |
|
Euro |
1 |
Rs.62.15 |
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.