BUSINESS INFORMATION REPORT
1. Summary Information
|
|
|
Country |
|
|
Company Name |
MANGALORE
CHEMICALS AND FERTILISERS LIMITED |
Principal Name 1 |
DR. VIJAY MALLYA |
|
Status |
GOOD |
Principal Name 2 |
MR. DEEPAK ANAND |
|
|
|
Registration # |
08-002036 |
|
Street Address |
NO.5, CRESCENT ROAD, HIGH GROUNDS, |
||
|
Established Date |
18.07.1966 |
SIC Code |
-- |
|
Telephone# |
91-80-22208990-93 |
Business Style 1 |
MANUFACTURER |
|
Fax # |
91-80-22208989 |
Business Style 2 |
SELLER |
|
Homepage |
Product Name 1 |
COMPLEX FERTILIZERS |
|
|
# of employees |
827 |
Product Name 2 |
UREA |
|
Paid up capital |
Rs.1,185,486,000/- |
Product Name 3 |
DAP |
|
Shareholders |
PROMOTER AND PROMOTER GROUP-30.44% PUBLIC SHAREHOLDING-69.56% |
Banking |
AXIS BANK
LIMITED |
|
Public Limited Corp. |
YES |
Business Period |
44 YEARS |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
Ba (54) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
SUBSIDIARIES |
-- |
MCF INTERNATIONAL LIMITED |
-- |
|
Note |
--
|
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
3,433,460,000
|
Current Liabilities |
2,378,558,000
|
|
Inventories |
1,618,707,000
|
Long-term Liabilities |
981,633,000 |
|
Fixed Assets |
3,570,679,000 |
Other Liabilities |
1,249,070,000
|
|
Deferred Assets |
0,000 |
Total Liabilities |
4,609,261,000 |
|
Invest& other Assets |
282,476,000 |
Retained Earnings |
3,110,575,000 |
|
|
|
Net Worth |
4,296,061,000 |
|
Total Assets |
8,905,322,000 |
Total Liab. & Equity |
8,905,322,000 |
|
Total Assets (Previous Year) |
11,249,173,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
20,756,449,000 |
Net Profit |
564,912,000 |
|
Sales(Previous yr) |
24,696,198,000 |
Net Profit(Prev.yr) |
281,734,000 |
MIRA
INFORM REPORT
|
Report Date : |
04.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
MANGALORE CHEMICALS AND FERTILISERS LIMITED |
|
|
|
|
Registered
Office : |
No.5, Crescent Road, High Grounds, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
18.07.1966 |
|
|
|
|
Com. Reg. No.: |
08-002036 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24123KA1966PLC002036 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRM06363A BLRM00106B BLRM03609E BLRM00923G BLRM03445B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCM3599G |
|
|
|
|
Legal Form : |
Public limited liability company. The company's shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer, Purchaser and Seller of Fertilizers and Related
Products. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 17184000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Directors are reported as
experienced and respectable businessman. Trade relations are reported as
fair. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/ Head/ Marketing Office : |
No.5, Crescent Road, High Grounds, |
|
Tel. No.: |
91-80-22208990-93 |
|
Fax No.: |
91-80-22208989 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Level-11, UB Towers, UB City No.24, Vittal |
|
Tel. No.: |
91-80-39856000, 39856500, 39855000, 39855500 |
|
Fax No.: |
91-80-39855588 |
|
E-Mail : |
|
|
|
|
|
|
Flat No.1002, 10th Floor, Bhikaji Cama Bhavan,
|
|
Tel. No.: |
91-11-26181760 |
|
Fax No.: |
91-11-26107818 |
|
|
|
|
Works Office : |
Panambur, Mangalore - 575 010, |
|
Tel. No.: |
91-824-2220600 |
|
Fax No.: |
91-824-2407938 |
|
E-Mail : |
|
|
|
|
|
Zonal Office |
Located at: ·
Hubli
·
Raichur
|
|
|
|
|
Area Office |
Located at: ·
Hassan
·
Hubli
·
Raichur
·
Kerala |
DIRECTORS
As on 31.03.2010
|
Name : |
Dr. Vijay Mallya |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Deepak Anand |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. S.R. Gupte |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B.S. Patil, I.A.S. (Retd.) |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Pratap Narayan |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Shrikant G. Ruparel |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. N. Sunder Rajan |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. K. Prabhakar Rao |
|
Designation : |
Whole-time Director |
KEY EXECUTIVES
|
Name : |
Mr. A. Rudrachary |
|
Designation : |
Senior Vice President (Strategic
Initiatives) |
|
|
|
|
Name : |
Mr. V.C. Prakash |
|
Designation : |
Vice President (Marketing) |
|
|
|
|
Name : |
Mr. S. Ramaprasad |
|
Designation : |
Vice President (HR and Legal) and
Company Secretary |
|
|
|
|
Name : |
Mr. K. Raghuveeran |
|
Designation : |
Vice President (Finance) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Category of Shareholders |
No. of Shares |
Percentage of
holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
36,076,775 |
30.44 |
|
|
36,076,775 |
30.44 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
36,076,775 |
30.44 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
142,875 |
0.12 |
|
|
408,156 |
0.34 |
|
|
3,759,884 |
3.17 |
|
|
105,140 |
0.09 |
|
|
1,668,000 |
1.41 |
|
|
6,084,055 |
5.13 |
|
|
|
|
|
|
19,444,764 |
16.41 |
|
|
|
|
|
|
34,732,350 |
29.31 |
|
|
16,713,766 |
14.10 |
|
|
5,463,440 |
4.61 |
|
|
938,959 |
0.79 |
|
|
1,020 |
- |
|
|
3,438,490 |
2.90 |
|
|
1,048,921 |
0.89 |
|
|
4,300 |
- |
|
|
31,750 |
0.03 |
|
|
76,354,320 |
64.43 |
|
Total Public
shareholding (B) |
82,438,375 |
69.56 |
|
Total (A)+(B) |
118,515,150 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
118,515,150 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer, Purchaser and Seller of Fertilizers and Related
Products. |
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|
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|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2010)
(In
MT per annum)
|
Particulars |
|
Licensed
Capacity |
Installed
Capacity * |
Actual
Production |
|
Ammonia (for captive consumption) |
|
2,17,800 |
2,17,800 |
2,18,972 |
|
Urea |
|
3,79,500 |
3,79,500 |
3,79,500 |
|
Complex Fertilizers (DAP and NP) |
|
2,55,500 |
2,55,500 |
2,82,173 |
|
Ammonium Bi-Carbonate |
|
15,330 |
15,330 |
15,330 |
|
Sulphuric Acid |
|
33,000 |
33,000 |
27,543 |
|
Speciality Fertilizers |
|
40,000 |
40,000 |
8,931 |
* As certified by the Management
GENERAL INFORMATION
|
No. of Employees : |
827 (Approximately) |
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Bankers : |
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Facilities : |
Notes: a) Term loan from
Banks of Rs.157.431 millions (previous year Rs.141.803 millions) is secured
by exclusive charge on the specific assets, and second charge on all of the
Company's fixed assets including all movable and immovable properties both
present and future. b) Working
Capital facilities from banks are secured by a first pari passu charge on
present and future plant and machinery, stock of fertilizers including
work-in-process and raw materials, book debts, outstanding monies,
receivables, claims, bills, contracts, engagements, securities, investments,
rights and assets of the Company (except property effectively otherwise
hypothecated/ charged or mortgaged to the banks). c) Loans from others is lease liability secured by hypothecation of
assets acquired under the facility
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
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Auditors : |
|
|
Name : |
K.P. Rao and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Associates : |
United Breweries (Holdings) Limited |
|
|
|
|
Subsidiaries : |
MCF International Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
600000 |
13% Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.60.000 millions |
|
124000000 |
Equity Shares |
Rs.10/- each |
Rs.1240.000 millions |
|
|
Total
|
|
Rs.1300.000
millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
120000044 |
Equity Shares |
Rs.10/- each |
Rs.1200.000
millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
118515150 * |
Equity Shares |
Rs.10/- each |
Rs.1185.151
millions |
|
|
Add: Amount paid on equity shares forfeited: |
|
Rs.0.335
million |
|
|
Total
|
|
Rs.1185.486 millions |
* Of the above
shares, 44195473 Equity Shares are allotted as fully paid-up pursuant to a
contract without payment being received in cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1185.486 |
1185.486 |
1185.486 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3110.575 |
2706.481 |
2542.551 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4296.061 |
3891.967 |
3728.037 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
981.633 |
3912.049 |
3557.543 |
|
|
2] Unsecured Loans |
0.000 |
55.901 |
242.546 |
|
|
TOTAL BORROWING |
981.633 |
3967.950 |
3800.089 |
|
|
DEFERRED TAX LIABILITIES |
392.973 |
370.196 |
368.961 |
|
|
|
|
|
|
|
|
TOTAL |
5670.667 |
8230.113 |
7897.087 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3570.679 |
3199.208 |
3090.269 |
|
|
Capital work-in-progress |
281.976 |
165.930 |
155.712 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.500 |
0.500 |
0.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1618.707
|
1707.735 |
1706.805 |
|
|
Sundry Debtors |
173.084
|
90.500 |
170.119 |
|
|
Cash & Bank Balances |
74.413
|
160.905 |
599.110 |
|
|
Other Current Assets |
31.080
|
19.563 |
48.263 |
|
|
Loans & Advances |
3154.883
|
5904.832 |
5081.072 |
|
Total
Current Assets |
5052.167
|
7883.535 |
7605.369 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2359.953
|
2323.041 |
2356.138 |
|
|
Other Current Liabilities |
18.605
|
17.562 |
17.840 |
|
|
Provisions |
856.097
|
678.457 |
580.785 |
|
Total
Current Liabilities |
3234.655
|
3019.060 |
2954.763 |
|
|
Net Current Assets |
1817.512
|
4864.475 |
4650.606 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5670.667 |
8230.113 |
7897.087 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales and Services |
20756.449 |
24696.198 |
16559.445 |
|
|
|
Other Income |
60.856 |
144.217 |
90.942 |
|
|
|
TOTAL (A) |
20817.305 |
24840.415 |
16650.387 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenditure |
19556.232 |
23809.829 |
15747.599 |
|
|
|
Variation in Stock of Finished Goods and Work-in-Process |
(2.332) |
68.455 |
6.006 |
|
|
|
TOTAL (B) |
19553.900 |
23878.284 |
15753.605 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1263.405 |
962.131 |
896.782 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
234.357 |
359.971 |
154.329 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1029.048 |
602.160 |
742.453 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
183.704 |
169.550 |
159.084 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
845.344 |
432.610 |
583.369 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
280.432 |
150.876 |
178.818 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
564.912 |
281.734 |
404.551 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1327.712 |
1143.038 |
866.575 |
|
|
|
|
|
|
|
|
|
|
Adjustment as on
April 1, 2007 on account of AS 15 (Revised) on Employee Benefit |
-- |
-- |
(44.894) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
118.515 |
82.961 |
71.109 |
|
|
|
Corporate Dividend Tax |
20.142 |
14.099 |
12.085 |
|
|
BALANCE CARRIED
TO THE B/S |
1753.967 |
1327.712 |
1143.038 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports (F.O.B. Value) |
1.608 |
4.618 |
3.359 |
|
|
TOTAL EARNINGS |
1.608 |
4.618 |
3.359 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
38.365 |
41.940 |
36.586 |
|
|
|
Spare Parts |
59.410 |
32.168 |
34.743 |
|
|
|
Raw Materials |
3905.704 |
8101.677 |
8458.106 |
|
|
|
Purchase of Finished Goods |
4536.565 |
1353.111 |
1059.865 |
|
|
TOTAL IMPORTS |
8540.044 |
9528.896 |
9589.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.77 |
2.38 |
3.41 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
4899.330 |
10232.520 |
6124.110 |
|
Total Expenditure |
4630.780 |
9638.990 |
5697.550 |
|
PBIDT (Excl OI) |
268.550 |
593.530 |
426.560 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
268.550 |
593.530 |
426.560 |
|
Interest |
31.490 |
34.310 |
61.390 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
237.060 |
559.220 |
365.170 |
|
Depreciation |
49.310 |
52.750 |
54.090 |
|
Profit Before Tax |
187.750 |
506.470 |
311.080 |
|
Tax |
62.350 |
168.260 |
103.330 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
125.410 |
338.210 |
207.750 |
|
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 |
125.410 |
338.210 |
207.750 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.71
|
1.13 |
2.43 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.07
|
1.75 |
3.52 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.80
|
3.90 |
5.45 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.11 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.98
|
1.80 |
1.81 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.56
|
2.61 |
2.57 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
2009-2010
has been yet another year of records, with the Company achieving sales of 1
million metric tonnes of fertilizer sales, highest ever sales of Phosphatics and
highest ever profit after tax (PAT).
Sales (including other income) of the Company during the year 2009-2010
aggregated to Rs.20817.300 millions against Rs.24840.400 millions in the
previous year. Despite a higher sales volume, the turnover was lower,
attributable to decrease in the prices of raw materials as well as finished
goods. The EBITDA for the year was Rs.1306.100 millions compared to Rs.1318.500
millions during the previous year.
PRODUCTION
Urea
The
Company achieved production of the full re-assessed capacity of 3,79,500 MTs.
Di-Ammonium Phosphate (DAP) and Complex Fertilizers
The
Company achieved the highest ever annual production of 2,82,173 MTs of DAP and
NP (20:20:0:13) during the year compared to 2,33,343 MTs in the previous year.
Ammonium Bi-Carbonate (ABC)
Production of 15,330 MTs of ABC achieved by the Company was also the highest
ever compared to the production of 15,121 MTs during the previous year.
SALES
The Company achieved a record sale of One Million Metric Tonnes of Fertilizers
for the year 2009-10. During the year, the Company sold 3,83,338 MTs of Urea
compared to 3,86,836 MTs in the previous year. Sales of DAP and NP [20:20:0:13]
amounted to 2,80,413 MTs as against 2,35,566 MTs in the previous year. Sales of
traded products also registered significant growth, especially imported DAP at
1,74,670 MTs as against 64,126 MTs in the previous year.
INTEGRATED NUTRIENT MANAGEMENT
Under its Integrated Nutrient Management (INM) initiative, the Company
continued its efforts to create awareness about the advantages of balanced use
of fertilizers. As a result of the sustained focus of the Company over the last
few years, sales from this initiative for the year stood at Rs.720.000 millions, representing an increase of 33% over Rs.540.000 millions in the previous year.
In addition to providing extension support to farmers and dealers, the
INM unit of the Company at Hassan continued with its research activities and
produced soil and crop specific grades of fertilizers and soil health enhancers.
Farmers using the recommended soil and crop specific products reported better
crop quality and significant increase in yields. The Company will continue its
efforts to ensure that awareness of balanced use of fertilizers further
increases amongst the farming community.
WORKING CAPITAL
During
the year, domestic production as well as imports of phosphatic fertilizers were
substantially higher than in the previous year. Nevertheless, on account of lower
prices of raw materials as well as of finished products, the overall
requirements of working capital limits did not increase. Further, in order to
meet its working capital needs, the Company availed of short term loans from
banks that carried lower rates of interest compared to normal cash credit
limits. Settlement of subsidy claims was also relatively better during the
year. All these factors contributed to reduction in interest costs.
During the year, the Government of India did not issue any Fertilizer
Bonds. However, in order to meet working capital needs, the Company had to
liquidate the Fertilizer Bonds issued during the previous year, at a discount,
resulting in a loss of Rs.42.700 millions.
FERTILIZER POLICY
Stage-III of the New Pricing Scheme (NPS) for Urea announced by the Government
of India in March 2007 expired on March 31, 2010. As the new policy is yet to
be finalized and announced, the existing scheme has been extended
provisionally.
As per the existing policy, all Naphtha/Furnace Oil/LSHS based units
were to convert to gas by March 31, 2010. The Company is in readiness for
conversion, subject to availability of gas. Conclusion of agreements with
Indian Oil Corporation, Gas Authority of India Limited for supply of gas and
its transportation is in final stages. Based on latest indications, supply of
gas to Mangalore is expected to commence by end 2012. The Company has
commissioned a basic engineering study for the purpose of conversion to gas.
The policy in regard to concessions for Phosphatic and Potassic
fertilizers was based on import parity price during the year 2009-10. With
effect from April 1, 2010, the Government has introduced the Nutrient Based
Subsidy (NBS) policy for these fertilizers. In terms of this policy, each
nutrient content in fertilizer, is assigned a value and the aggregate of these
values is considered to arrive at the concession rates. Besides, an additional
subsidy on fortified subsidized fertilizers carrying secondary and
micro-nutrients as per the Fertilizer (Control) Order, 1985 [FCO] has also been
announced. The Government of India has also issued guidelines for the
manufacture and sale of customized fertilizers under clause 20B of FCO to
promote balanced plant nutrition and maximize fertilizer use efficiency.
SUBSIDIARY COMPANY
Besides being one of the world’s largest producers of food grains,
Recognizing the need to improve efficiencies and to address the issue of
inadequate post-harvest processing, storage, packing and distribution
facilities, the Company’s subsidiary MCF International Limited had embarked on
an innovative AGRI project to address some of these problems by leveraging its
linkages with farmers.
The number of farmers enrolled and the area of coverage under the
project increased to 3900 and 13500 acres respectively during the year and the
Company achieved vegetable sales of 30MTs per day by the end of the financial
year.
The Ministry of Corporate Affairs, Government of India, has exempted the
Company from the requirement of attaching the audited accounts of the
subsidiary Company to its annual accounts for the year ended March 31, 2010. The
annual accounts of the subsidiary Company and the related detailed information
will be made available to the holding and subsidiary Company’s investors
seeking such information at any point of time. The annual accounts of the
subsidiary Company is also available for inspection by any investor at the
Registered Office of the subsidiary Company as well as the Company and the
accounts of the subsidiary Company is also uploaded on the website of the
Company.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Industry Structure and Developments
The Company has only one business segment, viz. Fertilizers. It
manufactures both nitrogenous and phosphatic fertilizers and is the only
manufacturer of fertilizers in the State of
Threats and Opportunities
Stage III of New Pricing Scheme for Urea announced in March 2007
stipulated that existing Naphtha/Furnace Oil/LSHS units should convert to gas
by 31.3.2010. Despite their readiness for conversion, availability of gas at Mangalore
is a concern and the requisite pipeline infrastructure is not yet in place.
Given the gas supply situation, the Government of India is considering
extending this deadline for conversion to gas by 3 years upto 31.3.2013. It
appears that the work on the LNG terminal at
The Nutrient Based Subsidy scheme (NBS) announced by the Government with
effect from 1.4.2010 has announced concession rates for the year 2010-11 in
advance, thereby facilitating import of higher quantities of Phosphatic and
Potassic fertilizers. This move of the Government indicates a step towards
further reforms in the fertilizer sector. The Company has entered into
agreements with leading suppliers of fertilizers abroad for import of DAP and
MOP on a larger scale compared to last year.
Future Outlook
The demand for both Nitrogenous and Phosphatic fertilizers in
The Company is looking for diversifying into other products that are
synergistic with the existing operations. In addition, the Company has
increased imports of DAP and specialty fertilizers and a major thrust has been
given to maximize trading operations and focus on the Integrated Nutrient
Management business.
Financial and Operational Performance
Production Performance
A total production of 3,79,500 MTs of Urea, 2,82,173 MTs of Complex
fertilizers [DAP/ NP], and 15,330 MTs of Ammonium Bi-Carbonate was achieved
during the year.
Operating Results
Due to reduction in the concession rates on account of lower prices of
raw materials / imported fertilizers, the Company achieved a turnover of Rs.20820.000
millions against Rs.24840.000 millions, despite higher volume of sales. The
Profit after tax (PAT) was Rs.564.900 millions compared to Rs.281.700 millions
in the previous year. This is after accounting for Rs.42.700 millions towards
loss on account of Fertilizer Bonds issued by GDI as compared to Rs.356.300
millions in the previous year.
Resource Utilization
The Gross fixed assets as at 31.3.2010 were Rs.6532.300 millions as
compared to Rs.6100.600 millions in the previous year. During the year, the
Company added assets worth Rs.431.700 millions (net).
Working Capital
Net working capital excluding cash and bank balances, as on 31.3.2010
was Rs.1743.100 millions. Book debts outstanding for more than 6 months as on
31.3.2010 stood at Rs.0.088 million as compared to Rs.2.288 millions in the
previous year.
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER & NINE MONTHS ENDED 31.12.2010
(Rs.
in millions)
|
Particulars |
For the Quarter
Ended |
For the 9 Months
Ended |
|
31.12.2010 |
31.12.2010 |
|
|
Unaudited |
Unaudited |
|
|
(a) Net Sales / Income from Operations |
6111.570 |
21223.974 |
|
(b) Other Operating Income |
12.539 |
28.136 |
|
Total Income (a+b) |
6124.109 |
21252.110 |
|
Expenditure : |
|
|
|
a. (Increase) / Decrease in Stock in trade
and work in progress |
1117.102 |
(109.232) |
|
b. Consumption of raw materials |
2798.960 |
8427.736 |
|
c. Purchase of traded goods |
211.775 |
7128.160 |
|
d. Employees cost |
138.228 |
414.636 |
|
e. Depreciation |
54.086 |
156.141 |
|
f. Power and fuel |
867.332 |
2378.459 |
|
g. Other expenditure |
564.158 |
1723.716 |
|
h. Total expenditure |
5751.641 |
20119.616 |
|
Profit from operations before Interest
(1-2) |
372.468 |
1132.494 |
|
Interest |
61.391 |
127.187 |
|
Profit (+) / Loss (-) before tax and exceptional
items (3-4) |
311.077 |
1005.307 |
|
Exceptional items - Gain /(Loss) on sale
and Gain /(Diminution) in value of Fertilizer Companies Government of India
Special Bonds |
-- |
-- |
|
Profit (+) / Loss (-) before tax (5-6) |
311.077 |
1005.307 |
|
Tax expenses |
103.332 |
333.938 |
|
Net Profit (+) / Loss (-) for the period
(7-8) |
207.745 |
671.369 |
|
Paid-up equity share capital |
1185.486 |
1185.486 |
|
Reserves excluding Revaluation Reserves |
|
|
|
Basic & Diluted EPS not annualised
(Rs.) |
1.75 |
5.66 |
|
Public shareholding |
|
|
|
- Number of shares |
82438375 |
82438375 |
|
- Percentage of shareholding |
69.56 |
69.56 |
|
Promoters and promoter group Shareholding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of shares |
21780709 |
21780709 |
|
- Percentage of shares (as a % of the
total shareholding of promoter and promoter group) |
60.37 |
60.37 |
|
- Percentage of shares (as a % of the
total share capital of the company) |
18.38 |
18.38 |
|
b) Non Encumbered |
|
|
|
- Number of shares |
14296066 |
14296066 |
|
- Percentage of shares (as a % of the
total shareholding of promoter and promoter group) |
39.63 |
39.63 |
|
- Percentage of shares (as a % of the
total share capital of the company) |
12.06 |
12.06 |
Notes:
1. The concession for Urea for the 9 months period has been estimated
and accounted as per the pricing policy parameters applicable to Stage-III of the
New Pricing Scheme, which has been extended from 01.4.2010 on provisional basis
until further orders.
2. DAP, 20:20:00:13 and MOP subsidy has been accounted based on rates
announced by GOI under Nutrient Based Subsidy policy for 2010-11.
3. The Company's operations predominantly relate to the fertilizer
segment and profitability is dependent on prevailing GOI concession policy.
4. During the quarter 18 investor complaints
were received and redressed. There were no complaints pending at the beginning
and at the end of the quarter.
5. Previous period figures have been
regrouped, wherever necessary.
6. The above results were taken on record by
the Board of Directors at its meeting on 10.02.2011
The Auditors have carried out a limited review.
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2010 (Rs.
in millions) |
|
a) Outstanding Bank Guarantees |
35.837 |
|
b) Outstanding Corporate Guarantee given to bank for loans taken by
subsidiary |
24.786 |
|
c) Claims against the Company not acknowledged as debt. |
|
|
i) Disputed arrears of electricity charges, under appeal by Company /
KPTCL |
23.858 |
|
ii) Despite settlement of all crystallised dues under 'one-time
settlement' approved by the BIFR, Syndicate Bank had made a claim which was disputed
by the Company. This has been settled during the year. |
-- |
FIXED ASSETS:
·
·
·
Buildings
·
Railway Sidings
·
Roads, Drainage and Culverts
·
Plant and Machinery
·
Intangible Assets
·
Electrical Installations and Fittings
·
Equipment
·
Cranes and Locomotives
·
Furniture and Fixtures
·
Vehicles
- Owned
- Leased
·
Books
WEBSITE DETAILS:
CORPORATE PROFILE
Subject, with a turnover of over Rs.20817.300 millions (FY 2009-2010), is
the only manufacturer of chemical fertilizers in the state of Karnataka. The
factory is strategically located at Panambur, 9 km north of Mangalore City, on
the banks of the Gurpur River, in front o the New Mangalore Port. The plant is
well connected, both by rail and road. The
The Company is a part of the UB Group with Group shareholding of 30.44%. Dr.
Vijay Mallya is Chairman of the Board of Directors. The operations are managed
by a team of highly dedicated and experienced professionals.
The
The Company has capacity to manufacture 2,17,800 MT Ammonia (intermediate
product), 3,79,500 MT Urea, 2,55,500 MT Phosphatic Fertilizers (DAP and NP
20:20:00:13), 15,330 MT Ammonium Bi-Carbonate (ABC) and 33,000 MT Sulphuric
Acid (SAP) annually. . The design and engineering of the Ammonia/Urea plants
was done by Humphreys and Glasgow Limited,
The Phosphatic plant is designed and engineered by Toyo Engineering
Corporation,
The construction work started with the first pile driven on October 15,
1972 by the then Chief Minister, Shri D. Devaraj Urs.
The Ammonia/Urea plants were commissioned in March 15, 1976.
1976 - Ammonia and Urea production commenced
1982 - 60 tons per hour auxiliary boiler installed Ammonium Bi-carbonate
plant commissioned
1984 - Purge gas recovery unit installed
1985 - Captive power plant commissioned
1986 - Di-ammonium phosphate plant went on stream
1993 - 2.5 Million Gallons reservoir constructed
1999 - Marketing of Granulated Fertilizers
2002 - Installation of Pipe Reactor.
20:20:0 and 16:20:0 complexes produced Marketing of micro nutrient -
Zinc Sulphate
2003 - SAP R/3, integrated software system, OPERATION MITE, implemented.
MCF receives ISO 14001 Certification
2005 - Receives OHSAS certification
2006 - Installation of 100 TPD Sulphuric Acid plant
2008 - Installation of Imported Fertilizers Handling Unit
BOARD OF DIRECTORS
Dr. Vijay Mallya, is the Chairman of the $ 2 billion UB
Group. Dr. Mallya took over the reins of the Group in 1983 at the age of 28 and
has, since then, steered the UB Group to a multinational conglomerate.
Instrumental in shaping the Kingfisher brand as one of the most popular beers
across the globe. Dr. Mallya has received several awards both in
In recognition of Dr. Vijay Mallya’s contribution to the development of Trade
and Industry in Karnataka, the Federation of Karnataka Chambers of Commerce and
Industry conferred upon him “ Sir M. Visveswaraiah Memorial Award” for the year
2001.
Dr. Mallya is a former Member of Parliament and on board of several Public
Companies in
Mr. S. R. Gupte, Handled
diverse assignments in sectors like finance, administration and personnel with
oil major Caltex and airline major Air
Mr. Gupte joined the UB Group in March 1992 as Executive Vice Chairman and is
on the Board of a number of Public Limited Companies. He has been on the Board
of the Company from December 1996.
Mr. Deepak Anand, has
over 36 years senior managerial experience in
He started his career in the management consultancy division of A.F.Ferguson
and Company (AFF), the then largest firm of chartered accountants and
management consultants in
Mr. Anand joined the UB Group in 1988 as Senior Vice President, Corporate
Planning and Coordination. He held various senior management positions in the
group including Head of Liquor manufacturing, CEO of Kissan Food Products and
CEO of UB Global Corporation Limited (UBGCL).
Mr. Deepak Anand, took over as Managing Director of subject, in April 2005. MCF
has been growing rapidly under his leadership. Mr. Anand is now charting out a
new vision and growth strategy for the Company.
Mr. Shrikant G Ruparel,
was the Managing Director of Kolhapur Sugar Mills between 1971 and 1981. He was
also on the board of State Bank of
Mr. Ruparel is also on the Advisory Board of Stanford Research Institute and
holds important positions in various other educational centres. He is on the
Board of several public Companies.
Mr. Pratap Narayan,
started his career in the Sales Tax Department of Madhya Pradesh. He worked in
Indian Railways in various capacities before taking over as Deputy Director and
Joint Director – Planning in Railway Board.
Mr. Pratap Narayan was the first Executive Director of Fertilizer Industry
Co-ordination Committee and retired as a Director General of the Fertilizer
Association of India. He has taken up various international assignments and was
member of various committees appointed by the Government on policy issues such
as Gokak Committee to review pricing of phosphates and energy consumption norms
under Stage II of new pricing scheme for Indian Urea Industry etc., Mr. Narayan
has co-authored a book with Dr. H L S Tandon on Indian Agriculture, Past,
Present and Future.
Mr. N Sunder Rajan,
served in various capacities in the Finance Ministry, Ministry of Tourism and
Civil Aviation, Lok Sabha Secretariat and the Office of the Director of Audit,
He has served on the Boards of Vayudooth Limited, Hotel Corporation of India
Limited, Airline and Allied Services Limited. He retired from the Government in
May 2003 as Deputy Comptroller and Auditor General of
Mr. B S Patil, IAS, held several important assignments. He has wide ranging experience from heading State financial institutions to industrial development. The industrial and IT development in Karnataka owes a great deal to him for initiating imaginative policies for attracting investments. He retired as the Chief Secretary to the Government of Karnataka.
Mr. Prabhakar Rao, has been working with MCF since 1978 and has handled various responsibilities in the Company. As Director – (Works), he is presently responsible for production, maintenance, quality control, technical services, projects, safety and logistics at the Company’s plant in Mangalore.
Mr. Rao has widely travelled and participated in many National and
International symposiums. He has attended various Management Development
Programs in premier Institutions such as IIM Bangalore and Ahmedabad.
AWARDS AND RECOGNITIONS
From the year
1996-97, the Company’s performance dramatically improved with higher levels of
production in all the plants. In fact, the rated capacity of Urea was manufactured
for the first time in 1996-97 since commissioning in 1976, a singular
achievement!
Awards:
· FAI Award for 'Improvement in overall performance of a Company’ for three consecutive years 1996-97, 1997-98 and 1998-99.
· Letter of recognition in 1997 from Directorate General of Factory advisory Services and Labour Institutes (DGFASLI) for maintaining good safety and occupational health standards.
· MCF received the ‘Honest Tax paying businessmen’ award from Commercial Taxes Department, Mangalore Division, a unique initiative taken by Government of Karnataka to honour the prompt Tax payers. Mr. P. C. Jain, Senior Vice President (Works), MCF, Mangalore, received the award in a felicitation function held at Mangalore on 18th March 2005.
· MCF has been awarded the prestigious certificates on 1. Environment Management System conforming to ISO 14001:2000 in 2003 which was updated to latest version ISO 14001:2004 in 2005 and 2. Occupational Health and Safety Management System conforming to OHSAS 18001:1999 standard in 2005 which was updated to latest version OHSAS 18001:2007 in 2008.
The certificates were awarded by DET NORSKE VERITAS (DNV),
the
INFRASTRUCTURE:
MCF International
Limited
MCF International Limited [MCFIL] is a wholly owned subsidiary of
subject, a USD 330 Million Fertilizers manufacturing Company in the state of
MCF International Limited provides, inter alia, Consultancy and Plant
Management Services.
With a team of highly dedicated professionals, state-of-the-art infrastructure,
and wide global contacts, MCFIL is constantly seeking out opportunities to
create value to its customers.
MCFIL started its own Consultancy Services in 2006 offering expertise gained
over 3 decades in operation and maintenance of highly complex process plants.
With rich experience in chemical, fertilizer and petrochemical industries and
base load power plants the Company handled assignments both in
The Plant Management and Consultancy Services offered by MCFIL include:
· Erection and Commissioning
· Operation and Maintenance including turnaround activities
· Condition Monitoring
· Civil Engineering Services
· Technical Training using Simulators and on the job training
· Safety Practices and Training
· Environment and Quality Control Services
· Human Resources- HR Training and Placement Services.
· Logistics – Handling, Warehousing, Transportation and C and F Services for hazardous chemicals and bulk cargo.
Overview
Urea
The Urea Plant is designed based on the CO2 stripping process,
licensed by Stamicarbon b.v., the
The Urea solution that comes from the Stripper is separated and concentrated in
a low pressure section consisting of a rectification column, a flash vessel,
pre evaporator and two stages of evaporation. The molten Urea solution coming
from the final evaporator is taken to a revolving perforated prill bucket at
the top of the prill tower. The Urea solution is sprayed in the form of fine
droplets by rotation of the prill bucket. The droplets solidify into prills
before reaching the bottom of the prill tower as they come in contact with an
upward flow of air. The prills are collected and sent for bagging or
alternatively for storage in the Silo.
The Urea plant was revamped in March 2002. This resulted in improvement in the
product quality with a marginal increase in production quantity. For better
control of the operations, a new Distributed Control System replaced the
obsolete pneumatic controls. In 2006, HP Scrubber, the ammonia recovery unit,
was replaced with MP Scrubber which can be operated at low pressure and
Hydrogen converter was installed to improve the overall process safety.
The Company’s original industrial license was to produce 3,40,000 MT of Urea
annually. Subsequent to the revamp, the Government of India has recognised the
enhancement in the capacity to 3,80,000 MT per annum. Maximum production of
3,80,000 MT has been achieved in the year 2002-03.
Di Ammonium Phosphate (DAP)
To diversify into phosphatic fertilizers, the Company commissioned a DAP Plant
in 1986 with a licensed capacity of 1,38,000 MT per year. Imported Ammonia and
Phosphoric Acid (H3PO4) are the main raw materials. Toyo
Engineering Corporation,
Ammonia and
Phosphoric Acid react in a Preneutraliser (reactor) to produce slurry of Mono
Ammonium Phosphate (MAP). The slurry is then sprayed in a rotary granulator on
a rolling bed of recycle seed material with simultaneous ammoniation to produce
DAP. The wet granules obtained are dried to less than 1% moisture in a rotary
drier and sent for screening. The product is cooled in a fluidised cooler and
bagged.
In March/April 2002,
the Plant was modernized by installing a pipe reactor system in the granulator
with technology from Incro
With the introduction of improved operation and maintenance techniques and the
resultant increase in the on stream efficiency of the plant, production of
2,60,000 MT per annum of DAP and complex fertilizers can be achieved.
Ammonia (an intermediate product for urea production)
ICI, U.K, technology utilizing steam naphtha reforming process.
The erstwhile engineering firm, Humphreys and Glasgow Limited,
Naphtha, a petroleum product, is the main raw material for producing Ammonia.
It is first desulphurized and passed through primary reformer tubes, filled
with catalyst,
along with the
required quantity of steam to yield a gaseous mixture of Hydrogen (H2),
Carbon Monoxide (CO), Carbon Dioxide (CO2) and Methane (CH4).
The heat needed to complete the reaction is supplied by burning the fuel Naphtha
in the Primary Reformer furnace. The gas is then passed through the Secondary
Reformer along with the required quantity of air and steam to yield CO2.
H2 and Nitrogen (N2). The remaining CO is converted into
CO2 in two stages and then separated for use in Urea synthesis. The
product gases consisting of N2 and H2 are compressed to
about 180 kg/cm2 pressure and passed through the Ammonia Synthesis Converter at
about 480’C to produce gaseous Ammonia. This is further condensed and the
liquid Ammonia obtained is either sent to the Urea plant or stored in the
Horton Sphere.
The annual
production capacity is 217,800 MT. (The highest annual production of 227,028 MT
has been achieved in the year 2005-06.)
Ammonium Bi Carbonate (ABC)
The plant is capable of producing 15,000 MT per year of ABC and is based on
indigenous technology. The main raw materials, NH3 and CO2, are first bubbled
through water in a carbonation tower to form Ammonium Carbonate solution. This
solution is fed to a Bi carbonation tower where it is further reacted with CO2
to form slurry of ABC. This slurry is pumped to a centrifuge to separate
crystals of ABC from the mother liquor. The wet ABC crystals are dried in a
rotary drier and then bagged.
ChemCF NL and ChemCF NP
SULPHONATED
NAPHTHALENE FORMALDEHYDE (SNF), a speciality basic chemical used in
construction industry is manufactured in a state-of-the-art plant adopting
modern process technology. It is largely consumed in formulation of Concrete
Admixtures which facilitate dispersion of the cement particles and increase the
rate of hydration resulting in usage of less water for concrete mixture. The
entire manufacturing facility is fully automated to ensure environmentally
clean, safe and efficient operation producing consistent quality product.
ChemCF NL, the SNF
solution, stored in product storage tank and is sent to the filling station for
filling in road tankers and sold as liquid SNF.
Liquid SNF is dried
in spray dryer system to produce powder. The powder material is sent to packing
section and sold as powder SNF, the ChemCF NP.
Sulphuric Acid and Utilies
Manufacture of
Sulphuric Acid
The Sulfuric Acid
Plant technology is based on double conversion, double absorption contact
sulfuric acid process using powder sulphur as raw material. It consists of
three principal steps:
- Combustion of Sulfur to produce Sulfur Dioxide gas. S + O2 = SO2
- Conversion of Sulfur Dioxide gas to Sulfur Trioxide gas in the presence of vanadium catalysts. SO2 + ½ O2 = SO3
Absorption of Sulfur
Trioxide in sulfuric acid and reaction of water with Sulfur Trioxide to form
Sulfuric Acid. SO3 + H2O = H2SO4
Raw sulphur is
melted in pits with the help of steam coils using LP steam of 5kg/cm2.
This raw sulphur contains impurities like ash and organics which are removed by
filtration using ‘Leaf Filter’. The molten sulphur, stored in a Clean pit at
135oC is charged to the furnace through a sulphur gun which atomises
the sulphur. Dry combustion air is introduced into the furnace.
Sulphur-dioxide is
converted into sulphur- trioxide using Vanadium Pentoxide as catalyst in first three
beds of conversion maintaining gas inlet temperature of 410oC to 450oC
at each stage. Third Converter bed outlet is taken to IAT (Intermediate
The advantage of
this technology is that much better SO2 to SO3 conversion efficiencies are obtained due to
this intermediate absorption, since the ‘product’ formed i.e. SO3 has been removed and so the reaction tends
to proceed more towards the product side. It is possible to get conversion efficiencies
up to 99.8% compared to about 98% of earlier single absorption technology. Such
high conversion efficiencies naturally result in lower SO2 emissions
to the environment from the process.
Conversion from SO2 to SO3 is Exothermic and heat is removed at each stage to produce steam. Fifth Converter bed outlet
after complete conversion (99.8%) passes through final absorption tower to
produce Sulphuric acid. Hence the process is called Double Conversion Double
Absorption Process.
Utilities
The following systems cater to the requirement of different plants:
- Cooling water system - 16,600 m3/h circulation rate.
- Water De-mineralizing plant - 120 m3/h capacity.
- Nitrogen plant - 650 Nm3/h of gaseous nitrogen and equivalent 50 Nm3/h of liquid nitrogen.
Instrument Air Compressor
with Instrument Air drier of 1,500 Nm3/h capacity.
Product Handling
There are in all four streams for Urea and three streams for phosphatic fertilizers for bagging and dispatch.
Auxiliary Boiler
The Ammonia and Urea plants are supplemented with an auxiliary boiler of 60 MT/h steam capacity at 75 kg/cm2 pressure and 480°C.
Purge Gas Recovery
Unit (PGRU)
The productivity of the
Ammonia plant was increased by installing a PGRU in May 1984 of 4,800 NM3/h.
Captive Power Plant (CPP)
To overcome the frequent interruptions in power supply, resulting in equipment failure and wastage of energy during shut down and start ups of the plants, a Captive Power Plant with eight Wartsila Diesel Engine was commissioned. This has ensured smooth functioning and improved life of all the plants and critical equipment through the steady supply of quality power captively produced. The power plant meets the total power needs (35 MW) for the entire complex.
Imported Ammonia and Phosphoric Acid Terminal (IAT)
The terminal facilitates direct unloading from a ship. Ammonia is stored in a 10,000 MT atmospheric pressure storage tank. Phosphoric Acid is unloaded into two tanks of 8,000 MT each capacity.
Imported fertilizer handling facility
MCFL has installed Imported Fertilizer handling facility. The fertilizer imported through ships will be brought from the port by trucks/tippers and discharged inside the Bulk Storage Silo or to a receiving Hopper outside the silo for bagging and dispatch. The Silo capacity is 20,000 MT.
Imported Material transfer from silo to bagging plant - A partly
underground receiving hopper of capacity 20 MT has been provided outside the
silo for receiving the material directly from trucks. Pay loaders will be used
for reclaiming previously dumped material inside the silo into the receiving
hopper. A set of conveyors of capacity 150 tons per hour is provided to transfer
material from receiving hopper to bagging plant.
Bagging Plant (imported fertilizer) - The material brought from port is
transferred to the Bagging plant through bulk handling conveyors of capacity
150 tons per hour. The Bagging plant has two streams of 60 tons per hour
capacity each which can either be loaded to wagons or truck.
The bagging capacity is 2000 MT per day for 2 streams.
Water Reservoir
The entire complex requires 2 Million Gallons (MG) per day
of clarified water which is supplied by the Mangalore City Corporation from the
Bulk Storage (Silo)
There are two separate silos to store 30,000 MT and 10,000 MT of Urea and Phosphatic fertilizers respectively.
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.44.96 |
|
|
1 |
Rs.73.37 |
|
Euro |
1 |
Rs.62.33 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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.