BUSINESS INFORMATION REPORT
1. Summary Information
|
|
|
Country |
|
|
Company Name |
NAGARJUNA
FERTILIZERS AND CHEMICALS LIMITED |
Principal Name 1 |
MR. K.S. RAJU |
|
Status |
GOOD |
Principal Name 2 |
MR. ASHOK CHOPRA |
|
|
|
Registration # |
01-1983 |
|
Street Address |
NAGARJUNA HILLS,
|
||
|
Established Date |
28.01.1976 |
SIC Code |
-- |
|
Telephone# |
91-40-2335 2063 |
Business Style 1 |
MANUFACTURER |
|
Fax # |
91-40-2335 0282 |
Business Style 2 |
SELLER |
|
Homepage |
Product Name 1 |
AMMONIA |
|
|
# of employees |
-- |
Product Name 2 |
UREA |
|
Paid up capital |
Rs.4,653,855,000/- |
Product Name 3 |
-- |
|
Shareholders |
PROMOTER AND PROMOTER GROUP-38.28% PUBLIC SHAREHOLDING-61.72% |
Banking |
STATE
BANK OF |
|
Public Limited Corp. |
YES |
Business Period |
34 YEARS |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
A (66) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
SUBSIDIARIES |
-- |
NAGARGUNA OIL CORPORATION LIMITED |
-- |
|
Note |
-- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
4,752,922,000
|
Current Liabilities |
3,442,606,000
|
|
Inventories |
593,772,000
|
Long-term Liabilities |
9,773,519,000 |
|
Fixed Assets |
18,550,878,000 |
Other Liabilities |
2,171,017,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
15,387,142,000 |
|
Invest& other Assets |
7,317,296,000 |
Retained Earnings |
11,173,871,000 |
|
|
|
Net Worth |
15,827,726,000 |
|
Total Assets |
31,214,868,000 |
Total Liab. & Equity |
31,214,868,000 |
|
Total Assets (Previous Year) |
34,292,489,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
19,879,092,000 |
Net Profit |
663,734,000 |
|
Sales(Previous yr) |
23,719,061,000 |
Net Profit(Prev.yr) |
324,144,000 |
MIRA
INFORM REPORT
|
Report Date : |
04.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
Nagarjuna Hills, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
28.01.1976 |
|
|
|
|
Com. Reg. No.: |
01-1983 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24129AP1976PLC001983 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDN00018E |
|
|
|
|
PAN No.: [Permanent Account No.] |
HYDN00583C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
stock exchange. |
|
|
|
|
Line of Business
: |
Manufacturer and Seller of Fertilizers viz. Ammonia and Urea. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 63311000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Nagarjuna Group, diversified and progressive
industrial house and Andhra Pradesh. It is an established company having fine track records. Financial position
of the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. 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/ Corporate Office : |
Nagarjuna Hills, |
|
Tel. No.: |
91-40-2335 2063/
3495/ 7204/1374/ 7200/ 5317/ 23356414/ 23356418 |
|
Fax No.: |
91-40-2335 0282/
4660/ 4788/ 0247 |
|
Telex : |
0425-6538 NSL IN |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
|
|
|
|
|
Factory 2 : |
|
|
Tel No.: |
91-884-2360390/2360391 |
|
Fax No.: |
91-884-2362084/23675020 |
|
Email : |
|
|
|
|
|
Branch Office : |
Corporate
Affairs, |
|
Tel. No.: |
91-824-2456806 /
816 |
|
Fax No.: |
91-824-2454416 /
457 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. K.S. Raju |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Ashok Chopra |
|
Designation : |
Nominee of Saipem S.P.A. |
|
|
|
|
Name : |
Mr. Bal Krishna Batra |
|
Designation : |
Nominee of IDBI |
|
|
|
|
Name : |
Mr. Chandra Pal Singh Yadav |
|
Designation : |
Nominee of KRIBHCO |
|
|
|
|
Name : |
Mr. B. Sam Bob |
|
Designation : |
Nominee of Government of Andhra Pradesh |
|
|
|
|
Name : |
Mr. N.C.B. Nath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M.P. Radhakrishnan |
|
Designation : |
Nominee of SBI |
|
|
|
|
Name : |
Mr. S.R. Ramakrishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B.B. Tandon |
|
Designation : |
Nominee of IFCI |
|
|
|
|
Name : |
Mr. P.P. Singh |
|
Designation : |
Director (Technical) |
|
|
|
|
Name : |
Mr. R.S. Nanda |
|
Designation : |
Director and Chief Operating Officer |
|
|
|
|
Name : |
Mr. K. Rahul Raju |
|
Designation : |
Joint Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. M. Ramakanth |
|
Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.122010
|
Category of Shareholder |
Total No. of
Shares |
Percentage of Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
138,100 |
0.03 |
|
|
29,479,990 |
6.88 |
|
|
122,305,938 |
28.56 |
|
|
151,924,028 |
35.48 |
|
|
|
|
|
|
4,000,000 |
0.93 |
|
|
8,000,000 |
1.87 |
|
|
8,000,000 |
1.87 |
|
|
12,000,000 |
2.80 |
|
Total shareholding
of Promoter and Promoter Group (A) |
163,924,028 |
38.28 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
4,223,450 |
0.99 |
|
|
150,478 |
0.04 |
|
|
8,572,016 |
2.00 |
|
|
32,212,352 |
7.52 |
|
|
45,158,296 |
10.55 |
|
|
|
|
|
|
53,983,922 |
12.61 |
|
|
|
|
|
|
139,531,783 |
32.59 |
|
|
20,144,141 |
4.70 |
|
|
5,439,651 |
1.27 |
|
|
5,439,651 |
1.27 |
|
|
219,099,497 |
51.17 |
|
Total Public shareholding
(B) |
264,257,793 |
61.72 |
|
Total (A)+(B) |
428,181,821 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
428,181,821 |
- |
(1) Indian
Individuals / Hindu Undivided Family
NRI based CompanyBUSINESS DETAILS
|
Line of Business : |
Manufacturer and
Seller of Fertilizers viz. Ammonia and Urea.
|
|
|
|
PRODUCTION STATUS (AS ON 31.03.2010)
Licensed Capacity
*
Installed Capacity
@
|
Particulars |
Unit |
|
|
31.03.2010 |
|
Ammonia # |
MT/ Day |
|
|
2100 |
|
Urea # |
MT/ Day |
|
|
3620 |
|
Extruded Irrigation System and Parts thereof |
Lakh Mtrs/ Annum |
|
|
874 |
|
|
|
|
|
|
* Licenced Capacity
is not applicable in terms of Government of India Notification No. S.0.477(E)
dated 25th July, 1991.Registered pursuant to the scheme of
delicensing. @ As certified by the Management and relied upon by the Auditors
being a technical matter. # Re-assessed capacity by Government of India.
|
Particulars |
Unit |
|
|
Actual
Production |
|
Ammonia |
MT |
|
|
846533.00 |
|
Urea |
MT |
|
|
1482103.00 |
|
Extruded Irrigation System and Parts thereof |
Lakh Meters |
|
|
787.87 |
|
PVC Pipes |
Lakh Meters |
|
|
12.75 |
|
|
|
|
|
|
GENERAL INFORMATION
|
Bankers : |
State Bank of |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
M. Bhaskara Rao and Company Chartered Accountants |
|
Address : |
5-D, “Kautilya”, 6-3-652, Somajiguda, |
|
|
|
|
Subsidiaries : |
·
Nagarguna Oil Corporation Limited ·
Jaiprakash Engineering and Steel Company Limited ·
Kakinada Fertilizers Limited |
|
|
|
|
Associates : |
·
iKisan Limited ·
Nagarjuna Agrichem Limited ·
Nagarjuna Foundation ·
Nagarjuna Management Services Private Limited ·
Nagarjuna Holdings Private Limited ·
Nagarjuna Corporation Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
600000000 |
Equity Shares |
Rs.10/- each |
Rs.6000.000 Millions |
|
20000000 |
Preference Shares |
Rs.100/- each |
Rs.2000.000 Millions |
|
|
Total |
|
Rs.8000.000
Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
428181821 |
Equity Shares |
Rs.10/- each |
Rs.4281.818
Millions |
|
3720372 |
0.01% Ordinary Redeemable Preferences Shares
|
Rs.100/-
each |
Rs.372.037
Millions |
|
|
Total |
|
Rs.4653.855 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
428181821 |
Equity Shares Of the above1,29,94,561 Shares were allotted as fully Paid pursuant to
the approved Schemes of amalgamation without payments being received in cash |
Rs.10/- each |
Rs.4281.818
Millions |
|
|
Call in Arrears - Others |
|
-- |
|
3720372 |
0.01% Ordinary Redeemable Preference Shares |
Rs.100/-each |
Rs.372.037
Millions |
|
|
Total |
|
Rs.4653.855 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 |
4653.855 |
4652.031 |
4651.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
65.300 |
|
|
3] Reserves & Surplus |
11173.871 |
11574.804 |
12019.800 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
15827.726 |
16226.835 |
16736.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8615.096 |
12475.066 |
13913.100 |
|
|
2] Unsecured Loans |
1158.423 |
675.020 |
624.200 |
|
|
TOTAL BORROWING |
9773.519 |
13150.086 |
14537.300 |
|
|
DEFERRED TAX LIABILITIES |
1811.465 |
1812.119 |
1965.500 |
|
|
|
|
|
|
|
|
TOTAL |
27412.710 |
31189.040 |
33239.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
18550.878 |
19612.674 |
21198.200 |
|
|
Capital work-in-progress |
92.229 |
875.570 |
302.300 |
|
|
Lease Adjustment |
0.000 |
0.000 |
(629.500) |
|
|
|
|
|
|
|
|
INVESTMENT |
7225.067 |
7224.567 |
7224.600 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
593.772
|
749.423
|
1892.400 |
|
|
Sundry Debtors |
2981.619
|
3460.499
|
2981.400 |
|
|
Cash & Bank Balances |
619.591
|
576.997
|
312.000 |
|
|
Other Current Assets |
0.000
|
647.817
|
0.000 |
|
|
Loans & Advances |
1151.712
|
1144.942
|
4159.400 |
|
Total
Current Assets |
5346.694
|
6579.678
|
9345.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3145.893
|
|
2731.400 |
|
|
Other Current Liabilities |
296.713
|
257.176 |
|
|
|
Provisions |
359.552
|
91.000
|
1469.700 |
|
Total
Current Liabilities |
3802.158
|
3103.449
|
4201.100 |
|
|
Net Current Assets |
1544.536
|
3476.229
|
5144.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
27412.710 |
31189.040 |
33239.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales, Subsidy and Equated Freight (Net of taxes, duties, margins and discounts) |
19879.092 |
23719.061 |
21935.908 |
|
|
|
Other Income |
217.731 |
119.918 |
198.433 |
|
|
|
TOTAL (A) |
20096.823 |
23838.979 |
22134.341 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of traded products |
5261.870 |
3959.298 |
6410.362 |
|
|
|
Raw Material Consumed |
4067.246 |
7313.159 |
6012.548 |
|
|
|
Power & Fuel |
3119.126 |
4704.250 |
3115.894 |
|
|
|
Catalysts Charges |
57.187 |
54.397 |
76.507 |
|
|
|
Chemical and
Consumables |
73.256 |
53.550 |
64.754 |
|
|
|
Salaries, Wages and Benefits |
773.424 |
662.629 |
593.273 |
|
|
|
Increase/(Decrease) in Stock |
134.514 |
1061.512 |
(1009.839) |
|
|
|
Packing Material Consumed |
454.010 |
445.071 |
820.026 |
|
|
|
Transport and handling charges |
1287.780 |
1424.144 |
2086.386 |
|
|
|
Distribution Expenses |
83.446 |
88.405 |
71.903 |
|
|
|
Other Expenditure |
898.642 |
666.999 |
660.040 |
|
|
|
TOTAL (B) |
16210.501 |
20433.414 |
18901.854 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3886.322 |
3405.565 |
3232.487 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST & FINANCIAL
EXPENSES (D) |
1490.412 |
1693.220 |
1629.663 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2395.910 |
1712.345 |
1602.824 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1281.757 |
1209.569 |
1201.521 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1114.153 |
502.776 |
401.303 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
450.419 |
178.632 |
176.395 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
663.734 |
324.144 |
224.908 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1582.019 |
1257.918 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
150.000 |
0.000 |
NA |
|
|
|
Preference Dividend |
0.037 |
0.037 |
NA |
|
|
|
Proposed Dividend - Equity |
214.091 |
0.000 |
NA |
|
|
|
Dividend Tax |
36.391 |
0.006 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
1845.234 |
1582.019 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Services |
32.816 |
0.000 |
3.132 |
|
|
TOTAL EARNINGS |
32.816 |
0.000 |
3.132 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Spares |
16.963 |
23.572 |
12.111 |
|
|
|
Traded Products |
1633.473 |
257.284 |
234.934 |
|
|
|
Capital Goods (WIP) |
175.773 |
57.819 |
175.500 |
|
|
TOTAL IMPORTS |
1826.209 |
338.675 |
422.545 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
1.55 |
0.76 |
0.53 |
|
|
|
- Diluted |
0.00 |
0.00 |
0.51 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.012.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3311.490 |
11230.210 |
8545.790 |
|
Total Expenditure |
2289.510 |
10058.630 |
7401.630 |
|
PBIDT (Excl OI) |
1021.980 |
1171.580 |
1144.160 |
|
Other Income |
6.990 |
34.430 |
19.340 |
|
Operating Profit |
1028.970 |
1206.010 |
1163.500 |
|
Interest |
311.850 |
509.910 |
474.380 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
717.120 |
696.100 |
689.120 |
|
Depreciation |
319.990 |
204.140 |
197.910 |
|
Profit Before Tax |
397.130 |
491.960 |
491.210 |
|
Tax |
125.760 |
208.350 |
157.500 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
271.380 |
283.610 |
333.710 |
|
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 |
271.380 |
283.610 |
333.710 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.30
|
1.36
|
1.02 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.60
|
2.12
|
1.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.66
|
1.92
|
1.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.03
|
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.86
|
1.00
|
1.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.41
|
2.12
|
2.22 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject the flagship company of the Nagarjuna Group was incorporated on
28th January 1976 at
FORFEITURE AND
REISSUE OF PARTLY PAID SHARES
Pursuant to the
approval of the shareholders at the 33rd Annual General Meeting held on
September 17, 2009, 3,75,151 forfeited equity shares of Rs.10/- each at an
issue price of Rs.33.50/- per share (including a premium of Rs.23.50 ps. Per
share) were re-issued and allotted to Nagarjuna Holdings Private Limited.
PLANT OPERATIONS
Urea
The company during
the year manufactured 14.82 LMT of Urea as against 13.78 LMT in the previous
year. This is the highest ever production achieved surpassing the previous best
of 2004-05 which was 13.93 LMT. The company’s plant achieved Lowest Annual Urea
Specific Energy of 5.588 Gcal/ MT Urea surpassing the previous best of 5.607
Gcal / MT Urea achieved during 2007-08.
The company during
the year undertook various initiatives for improving energy efficiency,
reliability and cost reduction. Following are the major initiatives taken for
improving Plant Production, energy efficiency, reliability and cost reduction.
• The Annual Turn
Around and Revamp Schemes were successfully implemented ahead of schedules.
• With the
commencement of supply of gas to both the plants, the Company has phased out
usage of Naphtha in a phased manner and has completely changed over to Natural
Gas feed Stock from August ’09 onwards.
Carbon Dioxide
Recovery (CDR) Plant / De-bottlenecking and Revamp
The company during
the year, commissioned the Carbon Dioxide Recovery (CDR) Plant of 450 metric
tons per day capacity from the gases for commercial use in the company’s
existing urea production facilities.
The revamp / de-bottlenecking
Phase II has been completed by September ‘2009 and this has resulted in
increase of production by about 2 lakh metric tons per annum. Both the projects
were carried out at a cost of approximately Rs.2000.000 millions.
Micro Irrigation
The company
achieved highest ever production of 801 Lakh Mtrs against of 511 Lakh Mtrs
during the previous year.
MARKETING
Urea
The company
achieved the highest ever sale of manufactured urea of 15.05 LMT surpassing the
previous best: of 13.97 LMT in the previous year.
The total urea
sales both manufactured and imported was 21.19 LMT compared to 23.08 LMT of
previous year.
Specialty
Fertilizers
The company sold
8263 MTS during the year, in comparison with sales of 9890 MTS during the
previous year.
Micro Irrigation
The company during
the year achieved 55% growth in sales aggregating to Rs.1017.000 millions which
is the highest cumulative sales as compared with that of the previous year
(Rs.608.800 millions).
NEW PROJECTS
The company at
their 15th Extra-ordinary General Meeting informed that various growth options
were being considered to enhance the company’s future revenues and for the
expansion of one of its core businesses i.e., fuels and feedstock.
The company is
venturing into the field of manufacture of chemicals for solar and
semi-conductor applications businesses.
Pursuant to the
consent of the members a wholly owned subsidiary company under the name and
style of ‘Nagarjuna Mauritius Private Limited’ has since been incorporated with
the Registrar of Companies,
Awards
The company during
the year bagged various awards, the prestigious awards being :
- The “FAI
Excellent Environmental Protection Award” in Nitrogenous Fertilizer Plants
category for the year 2008-09. The Company won this award for the
fifth time and third time consecutively.
- “The
Excellence in Safety” for the year 2009 from FAI.
- “Excellence
in Management of Health, Safety and Environment” from ICC (Indian
Chemical Counsel),
- Runner-up Award
for “Excellence in Energy Conservation” for the year 2008-09 under
the Chemicals and Fertilizer Sector from NEDCAP (Non-Conventional
Energy Development Corporation of Andhra Pradesh Limited),
SUBSIDIARY
COMPANIES
The company
acquired 100% of the equity capital of Kakinada Fertilizers Limited on December
15, 2009, pursuant to the approval of the members at their 33rd Annual General
Meeting held on September 17, 2009 and Kakinada Fertilizers Limited has become
a wholly owned subsidiary of the company.
The company
incorporated a wholly owned subsidiary under the name and style of Nagarjuna
Mauritius Private Limited on April 20, 2010, pursuant to the approval of the
shareholders at the 15th Extraordinary General Meeting of the company held on
April 15, 2010.
A statement of the
holding company’s interest in the subsidiary companies viz., Jaiprakash
Engineering and Steel Company Limited (JESCO), Nagarjuna Oil Corporation
Limited (NOCL) and Kakinada Fertilizers Limited (KFL), is enclosed in
accordance with Section 212 (2)(a) of the Companies Act, 1956. Nagarjuna
Mauritius Private Limited has not been included in the above statement as it
was incorporated only on April 20, 2010.
In accordance with
the approval granted by the Central Government, the Balance Sheet and Profit
and Loss account, Report of the Directors’ and Auditors’ Report of subsidiary
companies viz., Nagarjuna Oil Corporation Limited, Jaiprakash Engineering and
Steel Company Limited and Kakinada Fertilizers Limited are exempted from being
appended to the Annual Report. Any member seeking information on any of the
subsidiary companies may write to the company to enable the same to be
forwarded.
Jaiprakash
Engineering and Steel Company Limited (JESCO)
The company is
considering various options for the optimum use of the land acquired for the
Steel project.
Nagarjuna Oil
Corporation Limited (NOCL)
Nagarjuna Oil
Corporation Limited, the company’s subsidiary, is setting up 6 million metric
tons per annum refinery project at Cuddalore, Tamil Nadu. NOCL has made substantial
progress. The refinery project was appraised by IDBI in 2006 at a total cost of
Rs.47900.000 millions. The project was again appraised by SBI in 2007 at the
same cost. The project of Rs.47900.000 millions is to be financed by equity of
Rs.13720.000 millions, subordinated debt (treated as quasi-equity) of
Rs.2250.000 millions and rupee term loans of Rs.31930.000 millions. The
Debt/Equity ratio including quasi-equity was 2:1.
Since the
appraisal, the following developments have taken place which have a bearing on
the cost as well as direction of the project.
• Increase in
Crude prices (from USD 35 to 80 / bbl)
• Increase in
forex rates
• Increase in
Interest rates
• Delay in the
recommencement of implementation of the project which has resulted in increase
in the preoperative expenses
• Changes in
design in the refinery for increased sour crude processing as it would fetch
additional refining margins.
In view of the
above reasons NOCL had appointed a reputed consultant to assess the project
cost and the consultants have submitted a report indicating a revised project
cost of Rs.69600.000 millions.
The company
proposes to further invest a sum of Rs.770.000 millions in the equity capital
of the subsidiary company NOCL in view of the increase in the project cost.
The progress of
the project has been on various fronts such as Engineering activities for all
the Relocated Units of the Project in
Shipment of
equipment from European ports has been completed in September 2009. The
Contractors for refurbishment of various equipment have been lined up and
refurbishment work is in full swing. Arrangements for setting up a 3x 60 MW
coal based power plant is in progress The Crude supply and product off-take
(export) contract with British Petroleum is in place, as also the agreement
with domestic marketing with Indian Oil Corporation.
The drawdown of
term loan sanctioned by the Financial Institutions are being availed to meet
the financial requirements of the project.
Kakinada
Fertilizers Limited (KFL)
The company has been
exploring various opportunities in the areas of manufacturing/ trading in Urea,
Complex Fertilizers, Micronutrients and other fertilizers.
No major activity
has commenced which needs to be reported to the shareholders of the company.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY SCENARIO
AND DEVELOPMENT
There is a growing
consensus across the world, that the worst of the financial crisis is over.
Economies have started to stabilize and recover from the recession of the past
two years. The Indian Economy has displayed remarkable resilience over the
course of the downturn and as per the recent announcements made by the
Government, it is expected to have a growth rate of 8% in 2010 – 11.
The prices of
fertilizers which saw new highs in the previous year have now dropped and are
stabilizing. In certain cases they are lower than the earlier threshold. In
February ‘2010 Government of India announced major policy changes for the
domestic fertilizer sector wherein non-urea fertilizers have been brought under
Nutrient Based Subsidy (NBS) policy. Manufacturers of non-urea fertilizers are
free to fix their MRP and the subsidy component is fixed for an entire year
unlike in the past.
The government has
gone ahead with the NBS policy only for non-urea fertilizers. The present
policy for urea expired on March 31, 2010 and a new policy is expected to be
announced soon. It is to be hoped that further changes in the government policy
are favorable and a level playing field is also ensured to the manufacturers of
urea.
The implementation
of NBS would lead to uncertainties for the fertilizer companies till such time
the dynamics of the policy are fully understood. There is every likelihood of
increased volatility in the profitability of companies in the fertilizer industry
under the new regime. Efficient companies will be better placed to handle this
volatility as they will be in a better position to control costs. The subsidy
component is fixed but any major changes in raw material prices will impact the
profitability of companies in the complex fertilizer segment more than before.
NBS regime is also expected to bring down the government’s subsidy bill for
complex fertilizers under control as the subsidy will now be fixed for an
entire year.
One welcome
announcement made in the Union Budget 2010-11 is that the fertilizer subsidy
payout will be in the form of cash instead of fertilizer bonds. This will help
in having greater working capital flexibility. Higher allocation towards
agricultural sector in the form of higher agricultural credit, renewed emphasis
on expansion of the Green Revolution and subsidised interest on farm loans are
expected to increase demand for fertilizers in the long term.
While the
announcement of the NBS policy is a step in the right direction, more needs to
be done quickly to encourage further investment in this vital sector. Direct
payment of subsidy to farmers which is a long pending reform should be brought
out without further delay. This would encourage judicious use of fertilizers by
the farmers. Government should also remove pricing and distribution controls on
all fertilizers including urea. steps should be taken in the immediate future
and the industry should move towards a decontrolled regime which will make a
big dent on the ballooning subsidy bill and reduce dependence on costly
imports.
FUTURE STRATEGIC
DIRECTIONS
The company during
the year, commissioned the Carbon Dioxide Recovery (CDR) Plant of 450 Metric
Tones per day capacity for commercial use in the company’s existing facilities.
The Revamp and
De-bottlenecking Phase-II projects have been completed and these measures are
expected to increase the production by about 2 lakh Metric Tonnes per annum.
The Micro
Irrigation business is also expanding by establishing new production lines to
meet the growing requirements in the country. The growth rate of their MI
business was several times higher than the industry growth rate.
The company is
also exploring various growth options to enhance its future revenues by
expanding one of its core businesses – fuels and feedstock. In this regard, the
company has identified investment opportunities in a joint venture company in
To take the above
proposal forward, the company is in the process of investing an amount of Euro
5 million in the equity capital of its wholly-owned subsidiary - Nagarjuna
Mauritius Private Limited , which investment would in-turn be re-invested in
Nagarjuna Spawnt GmbH, Germany, in Germany.
The above
investment would be advantageous to the company’s future prospects as there is
a growing market for these chemicals in solar applications.
UNAUDITED FINANCIAL RESULTS
(PROVISIONAL) FOR THE QUARTER / NINE MONTHS ENDED 31ST DECEMBER,
2010
(Rs.
in millions)
|
PARTICULARS |
Three months
ended |
Nine months
ended |
|
31.12.2010 (Unaudited) |
31.12.2010 (Unaudited) |
|
|
1 a) Net Sales/Income from operations |
8534.988 |
23063.143 |
|
b) Other Operating Income |
10.797 |
24.344 |
|
Total |
8545.785 |
23087.487 |
|
2 Expenditure |
|
|
|
a) (Increase)/decrease in stock |
(1304.009) |
(1799.974) |
|
b) Consumption of raw materials |
1468.346 |
4235.508 |
|
c) Power and Fuel |
998.278 |
2908.191 |
|
d) Purchases of traded products |
5019.249 |
10996.131 |
|
e) Employees Cost |
219.703 |
659.490 |
|
f) Depreciation |
197.908 |
722.037 |
|
g) Packing, Transport & Handling |
830.315 |
2162.171 |
|
h) Other expenditure |
169.743 |
588.250 |
|
Total |
7599.533 |
20471.804 |
|
3 Profit(+)/Loss(-) from Operations before Other Income, Interest &
Exceptional Items (1-2) |
946.252 |
2615.683 |
|
4 Other Income |
19.339 |
60.764 |
|
5 Profit(+)/Loss(-) before Interest & Exceptional Items (3+4) |
965.591 |
2676.447 |
|
6 Interest |
474.378 |
1296.138 |
|
7 Profit(+)/Loss(-) before Exceptional Items (5-6) |
491.213 |
1380.309 |
|
8 Exceptional Items |
-- |
-- |
|
9 Profit(+)/Loss(-) from ordinary activities before Tax (7+8) |
491.213 |
1380.309 |
|
10 Tax Expense |
157.503 |
491.610 |
|
11 Net Profit(+)/Loss(-) from Ordinary Activities after Tax (9-10) |
333.710 |
888.699 |
|
12 Extraordinary Items (net of tax expenses of Rs.) |
-- |
-- |
|
13 Net Profit(+)/Loss(-) for the period (11-12) |
333.710 |
888.699 |
|
14 Paid-up Equity Share Capital (Face Value of Rs. 10/- per share) |
4281.818 |
4281.818 |
|
15 Preference Share Capital (Face Value of Rs. 100/- per share) |
372.037 |
372.037 |
|
16 Reserves excluding revaluation reserve |
-- |
-- |
|
17 Earning Per Share (not annualised) - Rs. |
|
|
|
- Basic before/after extraordinary items |
0.78 |
2.08 |
|
- Diluted before/ after extraordinary items |
-- |
-- |
|
18 Public Shareholding |
|
|
|
- No. of shares |
264257793 |
264257793 |
|
- Percentage of shareholding |
61.72% |
61.72% |
|
19 Promoters and Promoter group Share holding |
|
|
|
a) Pledged/Encumbered |
|
|
|
- No. of shares |
120882348 |
120882348 |
|
- Percentage of shares (as a % of the total shareholding of Promoter
and promoter group) |
73.74% |
73.74% |
|
- Percentage of shares (as a % of the total share capital of the company) |
28.23% |
28.23% |
|
b) Non-encumbered |
|
|
|
- No. of shares |
43041680 |
43041680 |
|
- Percentage of shares (as a % of the total shareholding of Promoter
and promoter group) |
26.26% |
26.26% |
|
- Percentage of shares (as a % of the total share capital of the
company) |
10.05% |
10.05% |
Notes:
1. The Board of Directors of the company at their meeting held on January
10, 2011 have approved a Composite Scheme of Arrangement and Amalgamation
between Ikisan Limited, Kakinada Fertilizers Limited (KFL), Nagarjuna
Fertilizers and Chemicals Limited (NFCL) and Nagarjuna Oil Refinery Limited
(NORL).
The Scheme envisages demerger of the Oil Business undertaking of NFCL
into NORL and merger of the Fertilizer and Micro-Irrigation Business of NFCL
alongwith Ikisan Limited into KFL
The Scheme is subject to necessary approvals,
shall be effective from April 1, 2011.
2. The financial results relate mainly to Fertilizer segment. The
financial results of Micro Irrigation segment, Wind Energy segment being less
than the limit prescribed for separate disclosure in Accounting Standard 17,
has not been shown separately.
3. Income from urea operations is accounted on the basis of prices
notified under Stage III New Pricing Policy by the Government of India (GOI)
which has been further extended from 01-04-2010 onwards until further orders.
Input escalation/de-escalation and freight subsidy are accounted in accordance
with parameters notified by GOI. Credit for Import Parity Price benefit will be
recognised on achieving the cut-off quantity of production for the year.
Adjustments, if any, required will be considered on notification of final prices.
4. Depreciation on the increased value of
assets due to revaluation is adjusted from revaluation reserve.
5. Tax Expense includes current income tax,
prior years income tax and deferred tax.
6. Consolidated financial statements are not
published since the projects of the subsidiary company is in the implementation
stage.
7. The results for the quarter ended December
31, 2010 have been subjected to "Limited Review" by the Statutory
Auditors of the company.
8. The Company has not received any investor complaint during the current
quarter. No investor complaint was pending at the beginning / end of the
quarter.
9. Previous quarter / period figures have been re-grouped / re-classified
wherever necessary to make them comparable with the current quarter / period.
10. The above results were reviewed by the Audit Committee and approved
by the Board of Directors at their respective meetings held on February 7,
2011.
FIXED ASSETS:
·
Land
·
Building
·
Roads, Drains and Culverts
·
Railway Siding
·
Plant and Machinery
·
Furniture, Fixture and
Office Equipments
·
Vehicles
·
Leasehold Assets
WEBSITE DETAILS:
Profile:
The flagship company of the Nagarjuna Group, subject is a
leading manufacturer and supplier of plant nutrients in
Their broad portfolio of products and services include:
· Nutrition solutions:
Macro and Micro fertilizers and Farm Management services
· Micro Irrigation solutions
They offer their expertise for the management of chemical process plants, which include Specialist Services and Total Project Management.
Their operations and offerings have been aligned into three strategic business units:
· Straight Nutrition Business
· Nutrition Solutions Business
· Nagarjuna Management Services
To survive, grow and attain leadership position in their areas of operation it is essential for them to identify and capitalise on emerging opportunities.
Preparing for the future, proactively, they are addressing the most important aspects of their organisation:
· Strategy – Having a long term vision for the company
· Structure – To facilitate achieve their strategy
· People – Aligning related policies with Strategy and Structure. In turn to build the right capability, attitude and behaviour in employees.
· Process – To enable employees to work more efficiently and effectively, to have the best in class internal business processes.
Their endeavour is to unlock the full potential of their people by transforming into a performance driven organisation that attracts the best talent, nurtures a more productive and results-focused workforce and implements initiatives, which align people strategies with organisational objectives.
The key action areas in this road map
are:
· Facilitating redefinition of organisation structure to support subject’s business direction, goals and priorities.
· Evolving a people management philosophy and institutionalising systems and policies that reflect uniformity, fairness and transparency.
· Establishing Best in Class HR systems and processes, in line with organisational requirements.
· Facilitating creation of a performance based culture with clear linkages to rewards and careers.
· Defining the organisation capability framework and assessing organisational people capability to support subject’s vision.
The Founder
Shri K V K Raju - An eternal source of inspiration
Nagarjuna Group is a dream willed into reality by its visionary Founder Shri
KVK Raju. Shri KVK Raju a first generation technopreneur was born in a humble
agricultural family in Andhra Pradesh on November 28, 1928. On graduating from
A recipient of various awards for his outstanding contribution to the
industry and society, KVK, was a firm believer in the adage "practice what
you preach". A self-made man KVK practised simple living and high
thinking. He dreamt big and worked with an unstinted focus of mind and body to
make those dreams come true. KVK was a visionary with firm belief in his
mission to serve society through industry. It is this belief, which continues
to be the guiding light of Nagarjuna Group.
Shri P P Singh, Director (Technical)
A Mechanical Engineer and Fellow of Institution of Engineers with over 39 years
of experience in Management of Fertilizer Companies, he was formerly the
Managing Director of KRIBHCO, one of the largest fertilizer companies in the
co-operative sector in India. He is a Member of various committees and task forces
constituted by Government of India.
Shri R S Nanda, Director and Chief Operating Officer
A Mechanical Engineer with Distinction, he was formerly the President and
Managing Director of Coromandel Fertilizers Limited. He has a rich experience
in holding senior positions in various other reputed companies in his career
like EID Parry Limited , The Fertilizer Corporation of
Shri K Rahul Raju, Joint Managing Director
A young and dynamic professional with foresight and futuristic thinking, he is
a member on the Board of most Group companies. He has been fast propelling the
Group into several breakthrough areas, such as, Life Sciences and
Biotechnology. He has been instrumental in setting up the state-of-the-art
The Group
Founded in 1973 by Shri K V K Raju with a modest investment of US$ 23
million, the Nagarjuna Group today is a prominent industrial house in
1974: Birth of a
business group that pioneered several core sector enterprises in the coming
decades. Starting with manufacturing steel, Nagarjuna Steels Limited was
launched.
1985: With focus on
agriculture input business started plant nutrition business with subject.
1992: Forayed into the
Crop Protection Business with investments in Pesticide Formulations
manufacturing followed by Technical Grade Manufacturing in the year 1994.
1994: Micro irrigation
business started to address the irrigation problems of farmers living in water
and energy scarce regions.
1995: Ventured into Energy
sector. Entered into power generation by setting up Nagarjuna Power Corporation
Limited.
1997: Entered into
petroleum by setting up Nagarjuna Oil Corporation Limited.
Consolidating its core activities, today the Group’s major operations
cover Agri and Energy sectors.
Manufacturing
Facility
Urea manufacturing facility -
One of the largest Urea complexes in
The Natural gas based plants operate with one of the lowest energy consumption rates in the world. Charting out an ambitious future, the plant has expanded its operating capacity from the current 1.4 Million Tonnes to about 1.5 Million Tonnes per annum after completing the de-bottlenecking and the revamp of the project. The expansion has been planned keeping in mind the availability of additional Natural gas from huge Natural gas reserves in the nearby Krishna- Godavari basin.
They strive to adopt the global best practices in all areas of operations. The world class operations have resulted in long uninterrupted runs of plants for over 365 days with maximum availability of plant on-stream days. Minimum possible human interference and best maintenance practices keep equipment and facilities fit for intended use under safe working conditions. Process simulation software like ASPEN PLUS and drafting software like AUTOCADD are being used for plant simulations / modifications and in turn to minimise energy consumption, maximise production and maximise asset utilisation.
The plant also has an exhaustive documentation section and technical library with over 1300 Technical books and journals. The library also houses more than 1250 national and international standards.
Maintenance
Best maintenance
practices like predictive / proactive maintenance and reliability centred
maintenance are adopted in the plant to have zero equipment breakdown and zero
accidents due to equipment failure.
Quality Control
Strict adherence to quality in every aspect of production. Laying stress on technology, the plant maintains strict quality control of products with online product sampling and product quality monitoring. This has resulted in minimal fines and biuret in the product.
Certifications and Recognitions:
· Subject has been awarded with Rashtriya Chemicals and Fertilizers Award by the FAI for the best article in Production and Technology. 2007
· Subject has won the Best Technical Innovation Award from Fertilizer Association of India for performance excellence in the field of production technology. 2006
·
Golden Peacock National Quality Award for 1995
by
·
ISO 9002 Certification from BVQI,
Technical Services
To consistently achieve Global Manufacturing Excellence and to meet world benchmarks in product quality, energy efficiency, production maximisation, environment control and plant safety, the plant has adopted the best practices like Total Productive Maintenance (TPM), Process Safety Management (PSM) and has also undertaken several other initiatives.
To achieve all these they have specialised and dedicated teams like Process Engineering, General Engineering, Total Productive maintenance, Quality Control, Occupational Health and Safety.
People
Culture
They believe in creating a culture that encourages values,
teamwork, innovation, leadership and performance. The plant site at
Recognitions:
· Subject has been awarded with prestigious National Award for Excellence in Water Management by CII-Sohrabji Godrej Green Business Centre, Hyderabad.2006
· Subject has been awarded with 'Best Management' by Labour Department, Government of Andhra Pradesh on the occasion of May Day. 2006
· “Best Workers Welfare (Including Family Planning) effort by an Industrial or Commercial Unit in the State” for 1997-98 from A.P. Chamber of Commerce and Industry 1998
·
Good Housekeeping for 1994 by National Safety
Council, AP Chapter,
·
Best Industrial Canteen for 1994 by National
Safety Council, AP Chapter,
Talent
The company has a pool of immensely talented people with wide experience in the industry. Specialising in Operation and Maintenance, Project Management, Technical Services, E H and S, the team has experience in large modern integrated process plants across the globe.
Training and Development
The company has recognised well in advance the need for training and development of its human resources, to help them develop their skills to adapt to the changing world business and technological scenario.
The plant has world class training infrastructure facilities. Spacious classrooms congenial for learning sessions are well equipped with the latest and modern gadgets.
Environment, Health and Safety
Laying utmost importance to Environment, Health and Safety standards, they have been proactively adopting systems, implementing and effectively maintaining them.
Nagarjuna Management
Services
Nagarjuna Management
Services (NMS) is a strategic business unit of subject. NMS offers its expertise on
a long-term basis for the management of chemical process plants, especially to
ammonia and urea complexes worldwide.
The team of professionals managing the Fertilizer Plant have acquired wide and
rich experience in smooth operation, troubleshooting and emergency handling.
Engineers and Operators have provided maintenance services to fertilizer plants
in
NMS offers services for taking over total responsibility of operation and
maintenance (O and M) and other specialist services on long-term basis. NMS
aims at fullest satisfaction of client in achieving pre-agreed targets on
performance parameters. A comprehensive package of services include
pre-commissioning, commissioning, guarantee run, normal operation, maintenance
(routine as well as turnaround), inspection and condition monitoring,
environment and safety services, laboratory and quality assurance, purchase and
stores, process engineering and general engineering. In addition to O and M,
NMS can take-up total project management services too, during project phase.
NMS also provides class room as well as field training to clients’ personnel
for developing competencies and enhancing skills in plant services. This would
enable the clients’ team taking over the operations subsequently at an
appropriate time. For the provision of the services, NMS is backed by their
business partners who are well known names in their respective fields.
PRESS RELEASES:
NFCL Revamp Measures – Production to go up by 3.71 Lakh Metric Tonne
per Annum Urea.
Nagarjuna Fertilizers and Chemicals Limited is operating Natural Gas based Fertilizer Plants at Kakinada, Andhra Pradesh, which consists of two Units to produce Urea Fertilizer having a capacity of around 6 Lakhs MT per Annum each. Unit-I was commissioned in Aug 1992, is fully based on Natural Gas both as feed and fuel. Unit-II was commissioned in March 1998 and can operate on a mixture of Naphtha and Natural Gas in varying proportions depending upon the availability of Natural gas.
In anticipation of availability of additional Natural Gas from RIL KG Basin D-6 Block, NFCL had initiated Revamp / De-bottlenecking schemes stage-wise in the year 2006 in order to increase the Capacity, reduce Pollution and improvement in Energy and Reliability. Accordingly, in Revamp Phase-I, which mainly consisted of Installation of S-300 Ammonia Converter, replacement of Synloop Water Cooler, replacement of Air Pre-heater, replacement of HRSG-C economizer, etc., were implemented in the year 2007-08 with an investment of Rs. 550 millions and has resulted in Production increase of 50,000 MT per Annum from Unit-I.
Revamp Phase-II was initiated in the year 2007, mainly to
convert Unit-II fully operational on Natural Gas and to implement
de-bottlenecking measures in order to augment the capacity and to reduce
emissions. Accordingly, CDR Plant was installed and commissioned during Mar
2009. The CDR Plant recovers Carbon Di-Oxide from Reformer flue gas and there
by reduces the emissions. Revamp of both the plants were also taken up and
schemes have been commissioned on 23rd September 2009 in Unit-I and on 28th
September 2009 in Unit-II. With the measures taken up in Revamp Phase I and Phase-II,
the production capacity has increased to 15.66 Lakh MTPA from 11.95 Lakh MTPA.
The investment for Revamp Phase-II was approx. Rs. 2000 millions.
Apart from de-bottlenecking for capacity enhancement, due thrust has
been given for reduction of specific energy consumption and also enhancement of
reliability of the existing equipment. The energy consumption shall be reduced
from 5.66 Gcal / MT of Urea to 5.50 Gcal / MT of Urea. “Serving Society through
Industry” was the mission of NFCL founder Shri K V K Raju. On the same
lines, NFCL taken up these measures, which will help in making more Urea
available to the Farming community, besides bringing down the subsidy burden to
the Govt. of India and also substantially
reducing the Imports of Urea by the Country. The measures taken up for
recovery of 450 MTPD of CO2 from flue gases and reduction of energy shall also
qualify as ‘Clean Development Mechanism’ projects.
NAGARJUNA FERTILIZERS and CHEMICALS LIMITED MOVES TOWARDS CLEAN
DEVELOPMENT MECHANISM BY COMMISSIOINING CARBON DIOXIDE RECOVERY (CDR) PLANT AT
Sri K S Raju, Chairman and Managing Director of the Company declared the Commissioning of Carbon Dioxide Recovery (CDR) Plant of 450 Metric Tonnes Per Day capacity for commercial use in the existing Urea Production facilities. This glittering Inauguration ceremony was graced by the Senior Officials of M/s Mitsubishi Heavy Industries (MHI), Mitsubishi Corporation (MC), Tecnimont ICB (TICB) and other Senior Executives of the Company and the Government Officials in the NFCL Plant premises. A Pooja ceremony was performed prior the Inauguration.
The Order for CDR Plant was placed on MHI,
NFCL has two Units for the manufacture of Urea Fertilizer
with a capacity of 6
The company in order to maintain sufficient proportion of CO2 during the manufacture of Urea and Ammonia consequent to the change over of feed stack from naphtha to natural gas has undertaken the installation of the CDR Plant. In fact CDR Plant forms part of Revamp / De-bottlenecking Phase-II, which is in the process of execution. The intended De-bottlenecking schemes under Phase-II will be in place by September 2009. The advantages of this Revamp are given below:
· The CDR Project has been installed under Clean Development Mechanism and it shall reduce CO2 emission by 450 Metric Tonnes per Day.
· The energy norm will improve to 5.500 Gcal / MT of Urea from the present level of 5.610 Gcal / MT of Urea.
·
Production level will increase from both Units
by about 2.0
· Naphtha usage will be stopped, which will reduce the Subsidy burden of the Government.
· The additional Production will help to cover up the shortfall of Urea in the Country, which otherwise, has to be imported at a huge cost.
It is worth noting that NFCL had executed another similar Revamp in the year 2007-08, which helped to increase the Urea Production capacity by around 50,000 Metric Tonne per Annum. It was informed by NFCL sources that another Revamp, called Phase-III is in the feasibility study stage, to further augment the capacity of the Plants.
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 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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.