1. Summary Information
|
|
|
Country |
|
|
Company Name |
NATIONAL
FERTILIZERS LIMITED |
Principal Name 1 |
Mr. V. K. Sharma |
|
Status |
Good |
Principal Name 2 |
Shri Deepak Singhal |
|
|
|
Registration # |
55-007417 |
|
Street Address |
Scope Complex Core – III-7, |
||
|
Established Date |
23.08.1974 |
SIC Code |
-- |
|
Telephone# |
91-164-2270220 / 2271200 |
Business Style 1 |
Producers |
|
Fax # |
91-164-2270463 / 2271270 |
Business Style 2 |
|
|
Homepage |
Product Name 1 |
Nitrogenous Fertilizers |
|
|
# of employees |
4760 (Approximately) |
Product Name 2 |
-- |
|
Paid up capital |
4,905,784,000/- |
Product Name 3 |
-- |
|
Shareholders |
Promotors Holding – 97.64% Publc Share holding – 2.36% |
Banking |
State Bank of Union Bank of |
|
Public Limited Corp. |
Yes |
Business Period |
37 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A (63) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
17,386,300,000 |
Current Liabilities |
5,785,300,000 |
|
Inventories |
3,471,200,000 |
Long-term Liabilities |
4,031,600,000 |
|
Fixed Assets |
6,658,000,000 |
Other Liabilities |
3,387,200,000 |
|
Deferred Assets |
0 |
Total Liabilities |
13,204,100,000 |
|
Invest& other Assets |
1,510,000,000 |
Retained Earnings |
10,915,600,000 |
|
|
|
Net Worth |
15,821,400,000 |
|
Total Assets |
29,025,500,000 |
Total Liab. & Equity |
29,025,500,000 |
|
Total Assets (Previous Year) |
27,363,000,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
51,480,200,000 |
Net Profit |
1,715,100,000 |
|
Sales(Previous yr) |
52,073,300,000 |
Net Profit(Prev.yr) |
974,600,000 |
MIRA
INFORM REPORT
|
Report Date : |
07.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
NATIONAL FERTILIZERS LIMITED |
|
|
|
|
Registered
Office : |
Scope Complex Core – III - 7, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
23.08.1974 |
|
|
|
|
Com. Reg. No.: |
55-007417 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1974GOI007417 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELN00055G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACN0189N |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Producers of Nitrogenous Fertilizers |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 63285000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track. General
financial position is good. Trade relations are reported as fair. Business is
active. Payments are reported to be regular and as per commitments. The company can be considered normal for business 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 Office : |
Scope Complex Core – III-7, |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Naya Nangal, Distt. Ropar, |
|
Tel. No.: |
91-187-220543 |
|
Fax No.: |
91-187-220541 |
|
E-Mail : |
|
|
|
|
|
Factory : |
Vijaipur, Distt. Guna, Madhya Pradesh – 473111 |
|
Tel. No.: |
91-7544-273101 / 273090 |
|
Fax No.: |
91-7544-273089 / 273109 |
|
E-Mail : |
|
|
|
|
|
Factory : |
|
|
Tel. No.: |
91-180-2652481 to 485 / 2655570 |
|
Fax No.: |
91-180-2652515 |
|
E-Mail : |
|
|
|
|
|
Factory : |
Sibian Road, Bhatinda, |
|
Tel. No.: |
91-164-2270220 / 2271200 |
|
Fax No.: |
91-164-2270463 / 2271270 |
|
E-Mail : |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. V. K. Sharma |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Ms. Neeru Abrol |
|
Designation : |
Director (Finance) |
|
|
|
|
Name : |
Mr. R. K. Aggarwal |
|
Designation : |
Director (Technical) |
|
|
|
|
Name : |
Shri Deepak Singhal |
|
Designation : |
Joint Secy., Dept. of Fertilizers |
|
Address : |
|
|
|
|
|
Name : |
Shri Satish Chandra |
|
Designation : |
Joint Secy., Dept. of Fertilizers |
|
Qualification : |
|
|
Name : |
Shri S. A. T. Rizvi |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri N. K. Goyal |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. S. K. Bhattacharya |
|
Designation : |
Director |
|
|
|
KEY EXECUTIVES
|
Corporate Heads |
|
|
Name : |
Mr. Ajoy Kumar |
|
Designation : |
Chief Vigilance Officer |
|
|
|
|
Name : |
Mr. Rakesh Sahai |
|
Designation : |
Executive Director (Finance and Accounts) |
|
|
|
|
Name : |
Mr. R. K. Bhatia |
|
Designation : |
Executive Director (Corporate Planning and Technical) |
|
|
|
|
Name : |
Mr. S. N. Mahey |
|
Designation : |
Chief General Manager (Human Resources and Public Relations) |
|
|
|
|
Name : |
Mr. Rajiv Johri |
|
Designation : |
Chief General Manager (Materials Managment) |
|
|
|
|
Name : |
Mr. P. K. Kataria |
|
Designation : |
Chief General Manager (Internal Audit) |
|
|
|
|
Name : |
Mr. S. K. Ghai |
|
Designation : |
General Manager (Incharge - Marketing) |
|
|
|
|
Name : |
N. R. Satyapalan |
|
Designation : |
General Manager (Management Services) |
|
|
|
|
Name : |
Mr. Tek Chand |
|
Designation : |
Company Secretary (Company Sectt. And Legal) |
|
Address : |
A-11, Sector – 24, Noida – 201301, Distt. Gautam Budh Nagar, |
|
|
|
|
Unit Head |
|
|
Name : |
Mr. B.G.Singh |
|
Designation : |
General Manager (Incharge – Nangal) |
|
|
|
|
Name : |
Mr. P. C.Jain |
|
Designation : |
Chief General Manager (Panipat) |
|
|
|
|
Name : |
Mr. K. B.Verma |
|
Designation : |
Executive Director (Bathinda) |
|
|
|
|
Name : |
Mr. S. M. H. Rizvi |
|
Designation : |
Executive Director (Vijaipur I & II) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Central Government and State Government |
478999800 |
97.64 |
|
Sub Total (A)
(1) |
478999800 |
97.64 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Financial Institutions / Banks |
12620 |
- |
|
Central Government/State Government |
7463117 |
1.52 |
|
Sub Total (B)
(1) |
7475737 |
1.52 |
|
|
|
|
|
2. Non Institutions
|
|
|
|
Bodies Corporate |
966570 |
0.20 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
1879184 |
0.39 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
864927 |
0.18 |
|
|
|
|
|
Non Residents |
|
|
|
NRI |
56459 |
0.01 |
|
Clearing Members |
284898 |
0.06 |
|
Trusts |
4500 |
- |
|
Sub Total (B)
(2) |
4056538 |
0.84 |
|
(B) = (B) (1) +
(B) (2) |
11532275 |
2.36 |
|
|
|
|
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
0 |
0 |
|
|
|
|
|
Total (A) + (B) +(C) |
490532075 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Producers of Nitrogenous Fertilizers |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS AS ON (31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Ammonia |
Tonnes |
1894200 |
1944112** |
|
Urea |
Tonnes |
3230700 |
3329927 |
|
|
Tonnes |
23700 |
7131 |
|
Methanol |
Tonnes |
22110 |
2669 |
|
Bio Fertilizers |
Tonnes |
100 |
226 |
|
Argon Gas |
Tonnes |
950400 |
419413 |
Note :
*Licensed Capacity not applicable in terms of
government of
**Ammonia is primarily consumed for production
of urea
GENERAL INFORMATION
|
No. of Employees : |
4760 (Approximately) |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Chartered Accountant
Chartered Accountant |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500,000,000 |
Equity Shares |
Rs.10/-each |
Rs.5000.000 million |
|
|
|
|
|
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
490578400 |
Equity Shares |
Rs.10/-each |
Rs.4905.800 million |
|
|
|
|
|
|
|
|
|
|
*Includes 68,807,500 Equity shares allotted
for consideration other than 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 |
4905.800 |
4905.800 |
4905.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10915.600 |
9801.200 |
9170.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
15821.400 |
14707.000 |
14076.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2331.600 |
648.700 |
4246.600 |
|
|
2] Unsecured Loans |
1700.000 |
2000.000 |
1000.000 |
|
|
TOTAL BORROWING |
4031.600 |
2648.700 |
5246.600 |
|
|
DEFERRED TAX LIABILITIES |
1196.000 |
1156.200 |
1497.700 |
|
|
|
|
|
|
|
|
TOTAL |
21049.000 |
18511.900 |
20821.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6658.000 |
7344.100 |
8093.500 |
|
|
Capital work-in-progress |
292.000 |
174.900 |
123.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
1218.000 |
4604.300 |
6333.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3471.200
|
3486.800 |
3810.300 |
|
|
Sundry Debtors |
9205.500
|
9304.800 |
7767.200 |
|
|
Cash & Bank Balances |
6908.100
|
1076.000 |
1613.700 |
|
|
Interest Acrued on Investments |
11.900
|
69.900 |
81.300 |
|
|
Loans & Advances |
1260.800
|
1302.200 |
1157.200 |
|
Total
Current Assets |
20857.500
|
15239.700 |
14429.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4997.200
|
6039.000 |
5799.000 |
|
|
Other Current Liabilities |
788.100
|
616.100 |
677.200 |
|
|
Provisions |
2191.200
|
2196.000 |
1683.000 |
|
Total
Current Liabilities |
7976.500
|
8851.100 |
8159.200 |
|
|
Net Current Assets |
12881.000
|
6388.600 |
6270.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
21049.000 |
18511.900 |
20821.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
16953.900 |
16831.100 |
16230.200 |
|
|
|
Subsidy on Urea |
33959.500 |
34439.900 |
25176.300 |
|
|
|
Interest Earned |
306.100 |
500.000 |
360.200 |
|
|
|
Other Income |
260.700 |
302.300 |
289.200 |
|
|
|
TOTAL (A) |
51480.200 |
52073.300 |
42055.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/decrease in stock |
757.100 |
(295.800) |
(134.100) |
|
|
|
Purchase of Traded goods |
1537.100 |
33.800 |
65.800 |
|
|
|
Material Consumed |
27232.200 |
29372.800 |
23417.200 |
|
|
|
Employees remuneration and benefits |
3495.200 |
3303.400 |
3033.000 |
|
|
|
Power and Fuel |
10668.500 |
12403.900 |
8839.700 |
|
|
|
Freight and Handling |
2286.800 |
2326.600 |
2180.600 |
|
|
|
Repairs and Maintenance |
765.700 |
655.700 |
661.200 |
|
|
|
Other Expenses |
1091.500 |
1349.600 |
1378.400 |
|
|
|
TOTAL (B) |
47834.100 |
49150.000 |
39441.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3646.100 |
2923.300 |
2614.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
109.600 |
408.900 |
166.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3536.500 |
2514.400 |
2447.700 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
937.500 |
964.100 |
891.500 |
|
|
|
PROFIT FOR THE
YEAR |
2599.000 |
1550.300 |
1556.200 |
|
|
Add |
Adjustment
pertaining to prior period |
0.500 |
5.800 |
2.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2599.500 |
1556.100 |
1558.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
884.400 |
581.500 |
471.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1715.100 |
974.600 |
1086.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6984.900 |
6452.100 |
5855.600 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
171.500 |
97.500 |
108.600 |
|
|
|
Dividend |
515.100 |
294.300 |
326.000 |
|
|
|
Tax on Dividend |
85.600 |
50.000 |
55.400 |
|
|
BALANCE CARRIED
TO THE B/S |
7927.800 |
6984.900 |
6452.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
100.800 |
51.000 |
70.700 |
|
|
|
Capital Goods |
53.900 |
28.400 |
62.400 |
|
|
TOTAL IMPORTS |
154.700 |
79.400 |
133.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
171.51 |
97.46 |
-- |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
11660.100 |
15628.700 |
14721.900 |
|
Total Expenditure |
11190.900 |
14819.200 |
13778.40 |
|
PBIDT (Excl
OI) |
469.200 |
809.500 |
943.500 |
|
Other Income |
41.700 |
32.800 |
54.100 |
|
Operating
Profit |
510.900 |
842.300 |
997.600 |
|
Interest |
14.600 |
29.500 |
12.300 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
496.300 |
812.800 |
985.300 |
|
Depreciation |
230.900 |
205.700 |
223.200 |
|
Profit
Before Tax |
265.400 |
607.100 |
762.100 |
|
Tax |
87.600 |
176.100 |
253.100 |
|
Reported PAT |
177.800 |
431.000 |
509.000 |
|
Net Profit |
177.800 |
431.000 |
509.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.33
|
1.87 |
2.58 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.33
|
9.25 |
9.60 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.45
|
6.89 |
6.92 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.11 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.76
|
0.78 |
0.95 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.61
|
1.72 |
1.77 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL PERFORMACE :
During the year, the Company achieved turnover of Rs.50913.400 millions
(previous year Rs. 51271.000 millions). The profit before tax is Rs. 2599.500
millions (previous year Rs.1556.100 millions) and profit after tax is
Rs.1715.100 millions (previous year Rs.974.600 millions). The increase in net
profit by 76% over previous year is mainly due to improvement in the energy
efficiency at Panipat unit and reduction in interest expenses. The total
borrowings of the company as at 31st March, 2010, stood at Rs. 4031.600
millions (Rs.2648.700 millions as at 31st March, 2009). However, it had short
term deposits with scheduled banks of Rs.6782.800 millions as on 31st March,
2010 (Rs.900.000 millions as at 31st March, 2009), thus virtually a debt free
company. During the year, fertilizer bonds issued in lieu of cash subsidy of
face value of Rs.3711.900 millions were sold at a loss of Rs.331.700 millions.
At the year end, bonds of the face value of Rs. 1250.000 millions were held.
Operations
During the year, the company produced 3.330 millions tonnes of Urea
(103.07% of installed capacity) compared to 3.344 millions tonnes in the
previous year. The marginal reduction in production is due to additional
production of 3.900 millions tones at fuel-based Nangal and Bathinda Units in
previous year being economically viable considering the prevalent import parity
price of urea. The production includes 9.900 millions tonnes of additional
production of urea from Vijaipur unit. Marginal shortfall of 0.400 millions MT
at Nangal unit was made up by producing additional Urea at Panipat and
Bathinda. Company achieved ever best production of 226 tonnes of Biofertilizers
and 37648 tonnes of Neem-coated urea. The percentage share of NFL in urea
production in the country has been estimated at 15.8. Company has also started
the production of foundation and certified seeds under a pilot project.
During the year, with availability of additional 0.6 mmscmd (million
metric standard cubic meter per day), RIL natural gas from 1st May, 2009, naphtha
consumption has been substituted at Vijaipur unit with low cost gas.
Sates & Marketing
Company sold 3.378 millions tonnes of Urea against 3.377 millions tonnes
in the previous year. The sales turnover including subsidy for the year was Rs.
50913.400 millions against Rs.51271.000 millions in the previous year. The
reduction in Sales turnover is due to decrease in the subsidy rate pursuant to
decrease in prices of FO/LSHS and substitution of Naphtha with Natural Gas,
which has been largely off-set by sale of imported Murate of Potash (MoP) of Rs
1469.100 millions. Company achieved ever-best bio-fertilizer sales of 196
tonnes. It also sold 3468 tonnes of seeds during the year (previous year 1632
tonnes).
Company is also dealing in various industrial products including nitric
acid, ammonium nitrate, sodium nitrate/nitrite, sulphur, liquid argon,
methanol, etc. Company has also started the sale of ammonia from its Vijaipur
Unit. During the year sales turnover for industrial products is Rs.98.35
millions. Company also sold Compost, Micorhizza and seeds of the value of
Rs.73.100 millions.
Modernization and Expansion Projects
The year 2009-10 was a landmark year for the Company. Consequent upon
notification of remunerative investment polices by Government of India in urea
sector, the Company has undertaken a number of projects as follows:-
• Revamp of fuel-oil based plants at Panipat, Bathinda & Nangal
Company has undertaken revamp of fuel-oil based plants at Panipat,
Bathinda & Nangal for change over of feedstock from FO/LSHS to NG/RLNG.
Zero date of these projects has been fixed as 29th January 2010. These projects
involve a total investment of Rs.40660.000 millions and gestation period of 36
months from the zero date i.e. 29lh January 2010. Contract for revamp of
Panipat and Bathinda units has been signed with M/s Larsen & Toubro
(L&T) on 10th March 2010 and for Nangal unit with consortium of M/s
Tecnimont ICB (TICB) on 12th May 2010. M/s. Project & Development India
Limited (PDIL) has been engaged as Project Management Consultant for all the
projects.
• Capacity Augmentation & Energy Saving Project (ESP) at Vijaipur
Company has undertaken Capacity augmentation of urea plants at
Vijaipur-l & II by 16% and 23% respectively
including installation of Carbon Dioxide Recovery plant at an investment
of around Rs.9000.000 millions. The total urea
capacity after completion of Energy Saving project at Vijaipur-l and
Capacity Enhancement Project at Vijaipur-ll is
expected to be 6261 MTPD. Basic engineering for Ammonia-l, Ammonia-ll,
Urea-l and Urea-ll has been completed. Procurement of equipment is in progress.
The projects are expected to be commissioned by 2011 -2012.
Awards & Accolades
The Company excelled in performance in various areas, which got
recognition from various quarters during the year. The company has received the
ninth consecutive "Excellent" MoU rating for the fiscal year 2008-09.
Vijaipur unit has received "Green Tech Safety Award 2009" in
Fertilizer sector from Green Tech Foundation,
Environment Management
The Company has in place a system for controlling and monitoring
pollutants at all units complying with environmental standards and
legislations. Resource conservation, waste management and pollution prevention
are the driving forces for environmental excellence at the Company.
Silo system for collecting fly ash from ESP Hoppers using dense phase
pneumatic conveying system has been installed at Panipat and Bathinda units for
evacuation of ash from the plants.
All the Units are ISO 9001-2000 certified for Quality Management System,
ISO-14001 certified for Environment
Management System and have received OHSAS-18001 certification for
occupational health and safety management system.
Company has finalized and submitted the project development document for
installation of facilities for reducing Nitrous Oxide emissions from Nitric Oxide
Plant at Nangal. The project shall enable the Company to earn Carbon Credits
under Clean Development Mechanism.
Company is putting up a Carbon Dioxide Recovery Plant of 450 MTPD
capacity for recovery of carbon dioxide from Flue Gases of primary reformer at
Vijaipur. This will also help in reduction in discharge of green house gases.
Information Technology
The Company is using information technology in all of its business
functions and now looking at integration of these functions through
implementation of Enterprise Resource Planning (ERP). The Consultant is
reviewing all the business processes and formulate the strategy and road map
thereon.
On the IT infrastructure front, the Gompany has replaced its Leased Line
based wide area network by setting up MPLS - Virtual Private Network, which is
providing a secured & scalable connectivity amongst Corporate Office, Units
and Marketing Offices. The Marketing mobile staff have been provided with
high-speed data cards. DSLAMs/ADSL Routers have been provided at the Units for
LAN connectivity to remote locations through internal exchanges.
Corporate Social Responsibility
Socio Economic Development of Weaker Sections in rural areas
The Company is committed towards improving the crop productivity and living
standard of socio-economically weaker sections of the society. Keeping with its
strong commitment to rural development, the Company continued to facilitate the
farming community in improving the crop productivity by educating farmers about
the efficient use of fertilizers. In furtherance of this cause, during the year
424 field demonstrations and 161 R&D trials were undertaken on
different crops in different areas. Around 60,000 soil samples were collected
and tested for nutrient deficiency and analysis report provided to the farmers.
Mass awareness campaign was undertaken through intensive farmers' training to
apply inputs including micronutrients as per soil test recommendations.
Krishi melas, exhibitions, crop seminars, farmers' & dealers'
training programmes and study tours were organized to disseminate information
regarding improved farm technology and establish direct communication with the
farmers and also to educate the farmers of the balanced use of fertilizers and
its timely application besides providing guidance on pesticides &
fungicides. More than 0.200 millions crop literature in the form of
folders, leaflets, pamphlets in local languages were distributed during these
programmes. Krishi diary, an annual publication for farmers and Kisan Sandesh,
a season-wise crop advisory newsletter was addressed to the farmers. Anumber of
health camps for women and children, animal health camps, vocational training
programmes were organized. Water tank, water coolers, solar lights, tricycles,
school furniture, books etc. were also distributed.
Vijaipur, Panipat, Bathinda and Nangal Units carried out various
activities for the benefit of socially and economically weaker sections of the
society in their peripheral areas. Health awareness programmes, medical camps
were also organized. Financial aid, blankets, sewing machines, etc. were
provided to the poor and needy persons of the nearby villages. Scholarship to
meritorious students belonging to SC/ST categories, stationery items, sweaters,
furniture items, etc. were also distributed to school children. Community works
in the surrounding villages such as construction of boundary wall, flooring
work and other civil works at nearby schools were also carried out to provide
better environment for the students.
Implementation of Right to Information Act, 2005
Company has created necessary mechanism to provide information to
citizens of the country. Public Information Officers/Asstt. Public Information
Officers/Appellate Authorities have been appointed at all the Units/Offices of
the Company to respond expeditiously to the requests of the applicants under
the Act. During the year, 121 requests were received from the public and the
information was made available within the prescribed time.
Vigilance
Vigilance Division endeavoured for evolving and effectively implementing
preventive techniques including transparency, accountability, fair play,
objectivity and timely response in dealing with matters relating to public
administration.
All systems and processes for deliverance of services are being
synchronized through use of technology like effecting e-payments to vendors,
e-receipts, publishing complete details of tenders on website, e-procurement,
reverse auction, etc.
To impart proper training to the employees, yearly calendar was prepared
for organizing training programmes/ workshops. Special emphasis was laid by
organizing workshops on leveraging technology and disciplinary matters through external faculties. Vigilance
Awareness Week was also observed at all Units/Offices involving all employees
to create an environment of ethical growth in the organization.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
State of Economy & Industry
During the fiscal year 2009-10, economy started recovering from the
Global economic slowdown experienced during 2008-09. The economy responded well
to the policy measures undertaken in the wake of global financial crisis. It
was also a year of reckoning for the policy makers, who had taken a calculated
risk in providing substantial fiscal expansion to counter the negative fallout
of the global slowdown. A delayed and severely sub-normal monsoon added to the
overall uncertainty. Over the span of the year, the economy posted a remarkable
recovery in terms of overall growth and certain fundamentals justifying the
optimism for the Indian economy in the medium to long run.
The Indian Economy (GDP) grew by 7.4% in 2009-10. This has come about
despite a decline of 0.2% in agricultural output, which was a consequence of sub-normal
monsoons. The fast pace recovery of the economy underscores the effectiveness
of the policy response of the government in the wake of financial crisis.
Chemical Fertilizers have played a significant role in the development
of agricultural sector. The per hectare consumption of fertilizers in nutrients
terms has increased from 105.5 Kg in 2005-06 to 128.6 Kg in 2008-09. The
Government has taken a number of measures to improve the fertilizer application
in the country. To encourage balance use of fertilizers, a new concept of
customized fertilizers has been introduced. These fertilizers are soil specific
and crop specific. Organic fertilizers namely city based compost and vermin
compost and bio-fertilizers have been recognized and incorporated in Fertilizers
Control Order.
The domestic production of urea during the year 2009-10 was 211 millions
tonnes against the production of 19.900 millions tones in 2008-09. The
consumption of urea was 26.500 millions tonnes during the year which was almost
at previous year's level. Due to buoyant demand of urea in the country 5.200
millions tonnes of urea was imported compared to 5.700 millions tones in
previous year.
The Government implemented the Nutrient Based Subsidy (NBS) Policy on
decontrolled Phosphatic & Potassic fertilizer with effect from 1st April,
2010. The policy entails fixation of subsidy on the basis of nutrient contents
of Nitrogen, Phosphorous, Potash and
Business Organization
Company is mainly in the business of production and marketing of urea.
It has five Urea plants, one each at Nangal and Bathinda (
Company has an extensive marketing network spread with significant
presence in Northern and
NFL is the second largest producer of urea in the country with a share of
15.8% of total urea production.
Positioning for the future
(a)
Projects : Agriculture sector will continue to remain
vital for Indian economy. The contribution of fertilizers in increasing the
production and productivity of Indian agriculture especially food-grains is
undisputed. Considering the
opportunities available, Company has undertaken the following
initiatives:
Revamp of fuel-oil based plants at Panipat, Bathinda & Nangal
Company has undertaken revamp of fuel-oil based plants at Panipat,
Bathinda & Nangal for change over of feedstock from FO/LSHS to NG/RLNG.
These projects involve a total investment of Rs.4066 millions and have been
taken up for execution on 29th January, 2010 with gestation period of 36
months. Contract for revamp of Panipat and Bathinda units has been signed with
M/s L&T on 10th March, 2010 and for Nangal unit, on 12th May, 2010 with M/s
TCM (LSTK vendor). PDIL has been engaged as Project Management Consultant for
all the projects. Funds of Rs.3,8500.000 millions for the projects have been
tied-up from the market and loan agreements signed on 29th June, 2010.
• Urea Capacity Augmentation & Energy Saving Project (ESP) at Vijaipur
Company has undertaken Capacity augmentation of urea plants at
Vijaipur-l & II by 16% and 23% respectively alongwith installation of
Carbon Dioxide Recovery (CDR) plant. The total urea capacity after completion
of Energy
Saving project at Vijaipur-l and Capacity Enhancement Project at Vijaipur-ll
is expected to be 6261 MTPD from present level of 5240 MTPD. Basic engineering
for Ammonia-l, Ammonia-ll, Urea-l and Urea-ll has been completed. Procurement
of equipment is in progress. The estimated project cost would be around
Rs.9000.000 millions. These projects are expected to be commissioned by 2011
-12.
COM Project for Nitric Acid Plant at Nangal
Company had finalized and submitted the Project Development Document for
approval for putting up facilities for reducing nitrous oxide emissions from
Nitric Acid Plant at Nangal. The project will enable the Company to improve
environment and earn carbon credits under Clean Development Mechanism.
(b) Marketing:
•
In order to further strengthen its product line with a complete range of
chemical fertilizers, company has been importing MOP fertilizer for trading
through its distribution network. Contracts are also being lined-up to import
other fertilizers like DAP, complex fertilizers. Addition of Single Super
Phosphate (SSP) fertilizer in the product range is also in progress.
• Bio-fertilizers
Company has also initiated marketing of special fungus based
Bio-fertilizer 'Mycorrhiza' under the brand name of "Kisan
Mycorrhiza", which increases the root growth and improves soil structures
to provide vital nutrition to the plant.
• Seeds
Company has begun the production of foundation and certified seeds in a
pilot project at selected farmer's fields in adopted villages which can pave the
way for seed production on a commercial scale. Company has also initiated
action to set up its own Seed Processing Plant at
• Promotion of balanced use of fertilizers
Company believes in marketing its products and services through
extensive field demonstrations coupled with an effort to build relationships
with the end users, the farmers. This has helped to make its brand "Kisan
Urea" a household name.
In furtherance to that cause, during the year 424 field demonstrations
and 161 R&D trials were undertaken on different crops to exhibit the use of
balanced fertilization and bio-fertilizers, bio-pesticides/bio-insecticides to
improve crop production and soil health. Approximately, 60,000 soil samples
were collected and tested for nutrient deficiencies and analysis reports
supplied to the farmers.
Company has been organizing Kisan Melas, Crop Seminars, Farmers/Dealers
Training Programmes and study tours to disseminate improved farm technology and
establish direct communication with the farmers. Illustrated crop literature in
the form of folders, leaflets, pamphlets in local languages is distributed at
these programmes. Krishi diary, an annual publication for farmers and Kisan
Sandesh- a season-wise crop advisory newsletter is made available to farmers,
with the focus to reach farmers to improve their lot and to participate in
nation building.
Company continuously organizes Training Programs for its field force and
its dealers to boost their knowledge level and upgrading their skills.
• Customized fertilizers
In line with the Government of India, initiatives by declaring Nutrient
Based Subsidy Policies, Company intends to produce and market customized
fertilizers through its distribution network to strengthen the soil health and
to boost balanced use of fertilizers to harness productivity.
·
Business alliance
with Bharat Sanchar Nigam Limited (BSNL)
Company has entered into a strategic Business Alliance with Bharat
Sanchar Nigam Limited (BSNL) to market their products viz. Recharge Coupons,
(c) Joint Venture
:
Company signed MoU with M/s. KRIBHCO and RCF in January 2008 to form a Joint
Venture Company with the name "Urvarak Videsh Limited" to explore investment
opportunities abroad and within the country in nitrogenous, phosphatic and
potassic sectors and to render consultancy services for setting up projects in
Review of Performance of the Company
Production Review
Company produced 3.330 millions tonnes of Urea (103.1% of installed
capacity) compared to 3.344 millions tonnes in the previous year. Shortfall of
4391 tonnes of urea at Nangal was made up by extra production from Bathinda and
Panipat. Combined production of urea from Vijaipur-l and Vijaipur-ll during the
year was 1.828 millions tonnes. Total additional production from Vijaipur
plants over and above the installed capacity was 9.900 millions tonnes. All the
plants achieved their annual production targets except Nangal due to closure of
plant owing to an accident. The shortfall in production at Nangal was made good
by additional production from Bathinda and Panipat. The percentage share of NFL
in Urea production in the country during the year 2009-2010 is 15.8%. Company
achieved ever-best bio-fertilizers production of 226 tonnes against the earlier
best of 160 tonnes during 2008-09. Supply of gas at Vijaipur was adequate
because of availability of additional gas from Reliance Industries Limited
w.e.f. 1s1 May, 2009. With the commencement of supply of gas from M/s Reliance
Industries Limited (RIL) w.e.f. 1s1 May 2009, naphtha consumption has been
substituted with low cost gas.
Marketing Review
During the financial year 2009-10, Company achieved turnover of
Rs.50913.400 millions. In quantitative terms, sales of 3.378 millions tonnes of
Urea were achieved against 3.377 millions tonnes in corresponding period last
year.
Company achieved sales turnover of Industrial Products of Rs.991.500
millions. During the year 61081 MT of MoP was also traded fora value of
Rs.1469.100 millions. During the year, seeds, micorhizza and compost worth
Rs.73.100 millions were traded.
Company has been making continuous efforts to curtail marketing expenses
especially warehouse, handling, rake
handling, inventory carrying cost. Product movements are continuously
monitored to achieve the highest level of efficiency. Human Resource Management
Review To achieve sustainable growth and to foster motivational climate,
several initiatives were taken up in Human Resources area during the year. This
was accomplished through meeting training needs at various levels, providing
opportunities for employees participation in Management and rewarding suitably
for innovative ideas. Company achieved 2.98 man days training per employee.
Emphasis is put on to develop multiple skills and multidiscipline exposure
amongst the employees to achieve higher level of performance and productivity.
The manpower strength as on 31st March 2010 was 4760, as compared to 4868 at
the beginning of the year.
Review of
Financial Performance
During the year, Company achieved turnover of Rs.50913.400 millions. The
profit before tax was Rs.2599.500 millions (previous year Rs.1556.100 millions)
and profit after tax was Rs.1715.100 millions (previous year Rs.974.600
millions). The company was able to register increase of 76% in the profit
before tax over the previous year. During the year the interest expenses
decreased to Rs.109.600 millions (previous year Rs.408.900 millions) due to
receipt of subsidy in cash in place of bonds. The total borrowing of the
company as on 31st March 2010 stood at Rs.4031.600 millions against Rs.2648.700
millions as on 31st March, 2009. Debt
Equity Ratio as on 31.03.2010 is 0.25:1 as compared to 0.18:1 as on 31.03.2009.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.3010
|
Particulars |
Quarter Ended (Unaudited) |
Nine months Ended (unaudited) |
|
31.12.2010 Quarter |
31.12.2010 6th Month |
|
|
Operating Income |
|
|
|
Gross sales / Income from Operations |
14717.300 |
41921.700 |
|
Less: Excise Duty / Sale Tax recovered |
29.000 |
81.700 |
|
a) Net Sales / Income from Operations |
14688.300 |
41840.000 |
|
b) Other Operating Income |
33.600 |
170.700 |
|
Total Operating Income |
14721.900 |
42010.700 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
(232.300) |
(440.100) |
|
(b) Consumption of Raw Materials |
8990.000 |
24367.400 |
|
(c) Purchase of Traded Goods |
77.600 |
1073.400 |
|
(d) Employees Cost |
894.500 |
2617.000 |
|
(e) Power and Fuel |
3086.500 |
8994.600 |
|
(f) Depreciation |
223.200 |
659.800 |
|
(g) Other Expenditure |
962.100 |
3176.200 |
|
Total Expenditure |
14001.600 |
40448.300 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
720.300 |
1562.400 |
|
Other Income |
54.100 |
128.600 |
|
Profit/(Loss) before Interest and Exceptional items |
774.400 |
1691.000 |
|
Interest |
12.300 |
56.400 |
|
Profit / (Loss) after interest before Exceptional items |
762.100 |
1634.600 |
|
Deferred Interest |
0.000 |
0.000 |
|
Net Profit/(Loss) after exceptional item |
762.100 |
1634.600 |
|
Tax Expenses |
253.100 |
516.800 |
|
Net Profit/(Loss) after tax |
509.000 |
1117.800 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
4905.800 |
4905.800 |
|
Public Share Holding |
|
|
|
Number of Shares |
11577900 |
11577900 |
|
Percentage of Shareholding |
2.36 |
2.36 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
- |
- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
- |
- |
|
- Percentage of shares(as a % of the total share capital of the company) |
- |
- |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
479000500 |
479000500 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
|
- Percentage of Share (as a % of the total share capital of the company) |
97.64 |
97.64 |
Note :
1. Auditors have
carried out the limited review of the financial
results for the quarter/nine months ended 31.12.2010. The results were reviewed
by the audit committee and were approved and adopted in the meeting of the
board of directors held on 27th January 2011.
2. No investor
complaint was pending at the beginning and end of the quarter ended 31.12.2010.
During the quarter, 185 complaints were received and resolved.
3. Company is in the
process of offering an alternate optional employees social rehabilitation
scheme in lieu of existing social security scheme to its employees w.e.f.
01.01.2010. Differential impact of actuarial valuation, if any, shall be known
after receipt of response form employees and provided at the year end.
4. Previous
quarter/nine months figures have been regrouped and/or rearranged wherever necessary
to make their classification comparable with the current quarter /nine months.
SEGMENT WISE
REVENUE RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER/NINE MONTHS ENDED 31.12.2010
|
|
Particulars |
Quarter Ended (Unaudited) |
Nine months Ended (unaudited) |
|
1 |
Segment Revenue |
|
|
|
|
Urea |
14308.800 |
39892.700 |
|
|
Other Products |
379.500 |
1954.000 |
|
|
Less: Inter Segment Revenue |
0.000 |
6.700 |
|
|
Total Segment Revennue |
14688.300 |
41840.000 |
|
2 |
Segment Results |
|
|
|
|
Urea |
752.600 |
1572.300 |
|
|
Other Products |
57.000 |
257.400 |
|
|
Total Segment Results |
809.600 |
1829.700 |
|
|
Less : Unallocable Expenses (net of unallocable income) |
35.200 |
138.700 |
|
|
Less : Interest expenses |
12.300 |
56.400 |
|
|
Profit before tax |
762.100 |
1634.600 |
|
3 |
Capital Employed |
|
|
|
|
Urea |
16907.600 |
16907.600 |
|
|
Other Products |
297.200 |
297.200 |
|
|
Unallocable |
(265.600) |
(265.600) |
|
|
Total Capital Employed |
16939.200 |
16939.200 |
Note :
Company’s primary business segments are Urea
and other products (which include industrial products, traded goods ans bio
fertilizers which have got similar risk and return profiles) and are reportable
segment under accounting standard – 17 on segment reporting issued by the
institute of chartered accountant of
India. The operation of the company are conducted within
FIXED ASSETS :
- Free
- Lease hold Land
- Building
- Railway Sidings
- Plant and Machinery
- EDP Equipments
- Electrical Installation
- Other equipments
- Furniture and fixtures
- vehicles
AS PER WEBSITE :
Company Profile
NFL was incorporated on 23rd August 1974 with two
manufacturing Units at Bathinda and Panipat. Subsequently, on the
reorganization of Fertilizer group of Companies in 1978, the Nangal Unit of
Fertilizer Corporation of
The Vijaipur Plant was a landmark achievement in
project management in
Three of the Units Three of the Units are strategically located in the high
consumption areas of
NFL, a profitable public sector undertaking operates under the administrative
control of Department of Fertilizers in the Ministry of Chemicals and
Fertilizers. The Company is consistently making profits and registered a profit
(PBT) of Rs.260 crores for the year 2009-10.The Company’s strength lies in its
sizeable presence, skilled manpower, Marketing and strong distribution network
nationwide.
Aiming towards further growth, NFL is already in the process of revamping its
three fuel oil based plants for change over its feedstock from FO/LSHS to
NG/R-LNG and Capacity Augmentation of Urea at Vijaipur Unit. Towards reduction
of Green House Gases, Company has already initiated action for various CDM
(Clean development Mechanism) Projects so as to earn revenue in terms of carbon
credits.
NFL in collaboration with M/s KRIBHCO and RCF has formed a joint venture
company (JVC) named as Uravarak Videsh Limited (UVL) to explore investment
opportunities abroad and within country in Nitrogenous, Phosphatic and Potassic
sectors and to render consultancy services for setting up Projects in India and
Abroad. A brown field gas based Urea plant at Barauni in
Kisan Urea NFL’s popular brand is sold over a large marketing territory
spanning the length and breadth of the country. The Company also manufactures
and markets Bio-fertilizers and a wide range of industrial products which
include Methanol, Sodium Nitrate, Sodium Nitrite, Nitric Acid,
NFL over the years has developed a team of dedicated professionals in the areas
of production, maintenance, project management, safety and environment control.
These professionals are sought after in the Industry both in
NFL is known in the industry for its work culture, value added human resources,
Quality Management, Safety, Environment, Concern for Ecology and its
commitment to social upliftment and to ensure their compliance, All NFL plants
are certified and being maintained under ISO-9001 (2000), ISO-14001 and
OSHAS-18001 by conforming to International Quality, Environmental and
Occupational Safety and Hazards standards. With the certification of Corporate
Office/Marketing operations under ISO-9001: 2000, NFL has become the first
Fertilizer Company in the country to have its total business covered under
ISO-9001 Certification.
Urea is an essential commodity under the Essential Commodities Act, 1955. The
Department of Fertilizers (DoF) plans and monitors production, import and
distribution of fertilizers and manage the subsidy for indigenous and imported fertilizers
in the country. In this regard, DoF has set up an on line web based Fertilizers
Monitoring System (FMS). Presently Fertilizer companies are allowed to market
50% of their total Urea produce out side EC allocation.
The Department of Public Enterprises, Govt. of India in order to improve
accountability and giving higher autonomy to Public Sector Undertakings,
introduced the concept of MoU from early nineties NFL enters into a Memorandum
of Understanding (MoU) with the Government for each year under which the
Government undertakes to assist NFL with regard to availability of inputs,
obtaining ECA allocations commensurate with the availability of fertilizers
from NFL plants etc. NFL on its part undertakes to adhere to its production and
movement plans, achieve its ECA allocation and provide regular feedback to the
Administrative department. NFL signed first MoU with Department of Fertilizers
(DoF) for the year 1991-92. The company has been awarded Excellent rating for
the fiscal year 2008-09, which is 9th excellent rating in a row.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or
was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.99 |
|
|
1 |
Rs.73.23 |
|
Euro |
1 |
Rs.62.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.