1. Summary Information

Reference #

135-285805-01-020(20110224818)

Country

India

Company Name

RASHTRIYA CHEMICALS AND FERTILIZERS LIMITED

Principal Name 1

Mr. J. Kohareswaran

Status

Good

Principal Name 2

Mr. U.S. Jha

Our Reference #

134215

Registration #

11-20185

Street Address

Priyadashani, Eastern Express Highway, Sion, Mumbai – 400022, Maharashtra, India

Established Date

06.03.1978

SIC Code

--

Telephone#

91-22-24070968/0223/8590/24070024/24045024/25522260/24045001/2/3/4

Business Style 1

Manufacturer

Fax #

91-22-2407 0386/24070028/25522320

Business Style 2

Marketer

Homepage

http://www.rcfltd.com

Product Name 1

Chemical fertilizers

# of employees

4278

Product Name 2

Industrial chemicals

Paid up capital

Rs. 5,516,900,000/-

Product Name 3

--

Shareholders

Shareholding of Promoter and Promoter Group – 92.50 %

Public shareholding - 7.50%

Banking

State Bank of India

 

Public Limited Corp.

YES

Business Period

33 years

IPO

YES

International Ins.

-

Public Enterprise

YES

Rating

A (65)

Related Company

Relation

Country

Company Name

CEO

Joint Venture

India

Urvarak Videsh Limited

--

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2010

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

30,703,900,000

Current Liabilities

15,463,200,000

Inventories

4,095,900,000

Long-term Liabilities

13,308,400,000 

Fixed Assets

12,427,100,000

Other Liabilities

1,637,400,000

Deferred Assets

0,000,000

Total Liabilities

30,409,000,000

Invest& other Assets

1,553,500,000

Retained Earnings

12,854,500,000

 

 

Net Worth

18,371,400,000

Total Assets

48,780,400,000

Total Liab. & Equity

48,780,400,000

 Total Assets

(Previous Year)

51,679,800,000

 

 

P/L Statement as of

31.03.2010

(Unit: Indian Rs.)

Sales

27,101,000,000

Net Profit

2,348,700,000

Sales(Previous yr)

30,556,400,000

Net Profit(Prev.yr)

2,115,800,000

 

MIRA INFORM REPORT

 

 

Report Date :

05.03.2011

 

 

 

 

Tel No. :

91-22-2552..

Fax No. :

91-22-25522320

 

 

IDENTIFICATION DETAILS

 

Name :

RASHTRIYA CHEMICALS AND FERTILIZERS LIMITED

 

 

Registered Office :

Priyadashani, Eastern Express Highway, Sion, Mumbai – 400022, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

06.03.1978

 

 

Com. Reg. No.:

11-20185

 

 

CIN No.:

[Company Identification No.]

L24110MH1978GOI020185

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

 MUMR04953E

 MUMR15728G

 

 

PAN No.:

[Permanent Account No.]

AAACR2831H

 

 

Legal Form :

Public limited liability company. The company’s shares are listed on the Stock Exchanges

 

 

Line of Business :

Manufacturer and Marketer of chemical fertilizers and industrial chemicals

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (65)

 

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 73486000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having good track. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessman. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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 / Corporate Office :

Priyadashani, Eastern Express Highway, Sion, Mumbai – 400022, Maharashtra, India

Tel. No.:

91-22-24070968/0223/8590/24070024/24045024/25522260/24045001/2/3/4

Fax No.:

91-22-2407 0386/24070028/25522320

E-Mail :

investorcommunications@rcfltd.com

cmdrcf@bom3.vsnl.net.in 

kcprakash@rcfltd.com   

company_secretarial@rcfltd.com

Website :

http://www.rcfltd.com

 

 

Administrative Office :

Administrative Building, Mahul Road, Chembur, Mumbai – 400074, Maharashtra, India

 

 

Marketing Office :

Andhra Pradesh

 

Srilaxmi Complex, 10-2-289/25, Santinagar, Hyderabad - 500 028, Andhra Pradesh, India

Tel. No.: 91-40-23314259/23397084

Fax No.: 91-40-23316566

E-mail.: rcfhydmis@yahoo.co.in

 

Kadapa

 

1/189-3, NGOs Colony, Kadapa – 516002, Andhra Pradesh, India

Tel. No.: 91-8562-244695

Fax no.: 91-8562-244855

E-mail.: rdkadapa@yahoo.com

 

Khammam

 

11-3 128/2, Nehru Nagar, Khammam – 507001, Andhra Pradesh, India

Tel. No.: 91-8742-243664

Fax no.: 91-8742-225056

E-mail.: mmrcfkmm@rediffmail.com

 

Nizamabad

 

5-11-263, Pragathi Nagar, Behind Hotel Kapila, Nizamabad – 503003, Andhra Pradesh, India

Tel. No.: 91-8462-236850/234382

Fax No.: 91-8462-236850

 

Vijaywada

 

60-6-16/1, 1st Floor, 3rd Lane, Siddartha Nagar, Pinnamaneni Poly Clinic Road, Vijaywada – 520010, Andhra Pradesh, India

Tel. No.: 91-866-2472995/2474098

Fax No.: 91-866-24729955

E-mail.: mmrcfvja@rediffmail.com

 

Visakhapatnam

 

7-8-12, ‘Padmalya’ 1st Floor, Harbour Park Road, Vishakhpatnam (Vizag) – 530003, Andhra Pradesh, India

Tel. No.: 91-891-2539948/2553423

Fax No.: 91-891-2565441

E-mail.: rcfvsp@yahoo.com

 

Bihar and Jharkhand

 

Patna

 

F – 145, Sri Krishna Puri, Behind Ranjan Medico, Boring Road, Patna – 800001, Bihar, India

Tel. No.: 91-612-2213526/2211094

Fax No.: 91-612-2236420

E-mail.: patnarcf@satyam.net.in

 

Chhatisgarh

 

Raipur

 

A – 23, Shankar Nagar, Sector – 1, Raipur (CG) – 492007, Chhatisgarh, India

Tel. No.: 91-771-2420591/2423633

Fax No.: 91-771-2420591

Delhi Punjab Haryana HP and Chandigarh

 

H – 9, Green Park Extension, Mew Delhi – 110016, India

Tel. No.: 91-11-26195363/26195099

Fax No.: 91-11-26195097

E-mail.: rcfdelhi@del2.vsnl.net.in

 

Gujarat

 

Ahmedabad

 

Pushpak Building, 5th Floor, Khanpur, Ahmedabad – 380001, Gujarat, India

Tel. No.: 91-79-25602010/25601022

Fax No.: 91-79-25600275

E-mail.: rcfgujarat@rediffmail.com

 

Karnataka

 

Bangalore

 

174, MLA Layout, 80 ft. Road, R T Nagar, Bangalore – 560032, Karnataka, India

Tel. No.: 91-80-23542922/23542925

Fax No.: 91-80-23542045

E-mail.: rcfblr@vsnl.net

             rcfblrmktg@vsnl.net

 

Hassan

 

Congres Bhavan, B M Road, Hassan – 573201, Karnataka, India

Tel. No.: 91-8172-268957

Fax no.: 91-8172-265871

E-mail.: rcfhsnmm@sancharnet.in

 

Hubli

 

No. 6, BTM House, Vijay Nagar, Hubli – 580032, Karnataka, India

Tel. No.: 91-836-2350229/2357139

Fax No.: 91-836-2355144

E-mail.: rcfhubli@yahoo.com

 

Raichur

 

1-10-140, Kallur Colony, Station Road, Raichur – 584101, Karnataka, India

Tel. No.: 91-8532-230805

Fax No.: 91-8532-225142

E-mail.: rcfrch@sancharnet.in

 

Madhya Pradesh

 

Bhopal

 

HX – 8, E – 7, Extension Arera Colony, Bhopal – 462016, Madhya Pradesh, India

Tel. No.: 91-755-2420607/2464797

Fax No.: 91-755-2464788

E-mail.: rcflbhopal@sify.com

 

Maharashtra

 

Ahmed Nagar

 

S. No. 20, I. I. Lines, Behind Mahesh Talkies, Ahmed Nagar – 414001, Maharashtra, India

Tel. No.: 91-241-243074/2430150

Fax No.: 91-241-2430124

E-mail.: rcf_ahmednagar@indiatimes.com

             rcfnagar@sancharnet.in

 

Akola

 

Birla Colony, Tapdiya Nagar, Akola – 444005, Maharashtra, India

Tel. No.: 91-724-2426661/2426662

Fax No.: 91-724-2426662

E-mail.: akl_rcfltdakl@sancharnet.in

 

Aurangabad

 

Kanchan Chambers, 1st Floor, New Osmanpura, Aurangabad – 431005, Maharashtra, India

Tel. No.: 91-240-2333563/2352045

Fax No.: 91-240-2357798

E-mail.: rcfabad@sify.com

 

Jalgaon

 

47, Swapna Sakar Building, Jalgaon Hsg. Society, Shahu Nagar, Jalgaon – 425001, Maharashtra, India

Tel. No.: 91-257-2224023/2224081

Fax No.: 91-257-2224023

E-mail.: rcfjal@sancharnet.in

 

Kolhapur

 

Kanchanjanga Complex, 204 – E, New Shahupuri, Kolhapur – 416001, Maharashtra, India

Tel. No.: 91-231-2650010/2654083

Fax No.: 91-231-2660029

E-mail.: rcfkolhapur@sancharnet.in

 

Konkan

 

RCF JET Hostel, Chembur, Mumbai – 400074, Maharashtra, India

Tel. No.: 91-22-25548300/25546628

Fax No.: 91-22-25548863

 

Nagpur

 

Dandige Layout, East Shankar Nagar, Nagpur – 440010, Maharashtra, India

Tel. No.: 91-712-2542496

Fax No.: 91-712-2556126

E-mail.: rcfnagpur@sify.com

 

Nasik

 

1st Floor, Guru Krupa, Kulkarni Colony, Opposite Nelson Children’s Hospital, Sharanpur Road, Nasik – 422002, Maharashtra, India

Tel. No.: 91-253-2318744/2575937

Fax No.: 91-253-2318744

E-mail.: rcfnasik@sancharnet.in

 

Pune

 

685/2A, Mahalaxmi Complex, Bibwewadi, Satara Road, Pune – 411037, Maharashtra, India

Tel. No.: 91-20-24213526/24212928

Fax No.: 91-20-24210782

E-mail.: rcfpune@vsnl.net

 

Tamilnadu

 

Chennai

 

No. 1, 4th Main Road, United India Colony, Kodambakkam, Chennai – 600024, Tamilnadu, India

Tel. No.: 91-44-24721287/24880905

Fax No.: 91-44-24721286

E-mail.: rcfchennai@vsnl.net

 

Uttar Pradesh, Uttaranchal

 

Lucknow

 

A – 7, Sector – J, Aliganj, Lucknow – 226020, Uttar Pradesh, India

Tel. No.: 91-522-2762585/2364085

Fax No.: 91-522-2364197

E-mail.: rcflucknow@hotmail.com

 

West Bengal

 

Kolkata

 

Shanti Niketan, Flat No. 8, 5th Floor, 8, Camac Street, Kolkata – 700017, West Bengal, India

Tel. No.: 91-33-22820089/22820852

Fax No.: 91-33-22821546

E-mail.: rcfkol@rediffmail.com

 

Resident Representative at Delhi :

A-1, Qutab Hotel, Off Aurobindo Marg, New Delhi – 110 016, India

Contact Person: Mr. M. K. Gera (Chief Marketing Manager)

Tel. No.:

91-11-2685 1419 (Office) / 2723 2637 (Res.)

 

 

Guest House:

Ark Guest House, RCF Colony, Chembur, Mumbai – 400 074, Maharashtra, India

Contact Person: Mr. A. N. Borkar, Chief Executive Officer

Tel. No.: 91-22-2558 3981 (Office) / 2555 1242 (Res.)

 

Swagat Guest House, Kihim, District Raigad, Alibaug, Maharashtra, India

Contact Person: Maj. Ranade, CAM

Tel. No.: 91-2141-238028 (Office) / 238019 (Res.)

 

 

DIRECTORS

 

Name :

Mr. U.S. Jha

Designation :

Chairman and Managing Director

 

 

Name :

Mr. J. Kohareswaran

Designation :

Director (Marketing)

 

 

Name :

Mr. Gautam Sen

Designation :

Director (Finance)

 

 

Name :

Mr. Mathew C. Kunnumkal, IAS

Designation :

Additional Secretary and Financial Advisor Department of Fertilizers, New Delhi

 

 

Name :

Mr. Deepak Singhal, IAS

Designation :

Jt. Secretary Department of Fertilizers, New Delhi

 

 

Name :

Mr. I.C. Srivastava, IAS

Designation :

Retired Director

Address:

4 Ka-26, Jawahar Nagar, Jaipur-302004

 

 

Name :

Dr. Ashok Misra

Designation :

Director

Address:

Intellectual Ventures India, #701, Raheja Paramount, 138, Residency Road, Bangalore-560025, India.

 

 

Name :

Dr. Rajagopalan, IAS

Designation :

Additional Secretary and Financial Advisor, Department of Fertilizers, New Delhi

 

 

KEY EXECUTIVES

 

Name :

Mr. Ajoy Kumar, IAS

Designation :

Chief Vigilance Officer

 

 

Name :

Mr. R. K. Jain

Designation :

Executive Director (Trombay)

 

 

Name :

Mr. A. B. Ghasghase

Designation :

General Manager [IPD]

 

 

Name :

Mr. K.K. Phadnis

Designation :

Executive Director (HR)

 

 

Name :

Mr. P.K. Lahiri

Designation :

Executive Director (IA)

 

 

Name :

Mr. Bhunesh Mathur

Designation :

Executive Director (M)

 

 

Name :

Mr. C. M. T. Britto

Designation :

General Manager [Coordn]

 

 

Name :

Mr. V. G. Londhe

Designation :

General Manager [Fin. And IT]

 

 

Name :

Mr. Kumar Gupta

Designation :

Chief General Manager (Projects)

 

 

Name :

Mr. R. B. Patil

Designation :

General Manager [Fin. Tr.]

 

 

Name :

Mr. Rajesh Aggarwal

Designation :

Chief General Manager (O) : Thal

 

 

Name :

Mr. P.M.C. Nair

Designation :

Chief General Manager (Corp)

 

 

Name :

Mr. V.B. Gandhalikar

Designation :

Chief General Managers (Tech) Tr.

 

 

Name :

Mr. R.H. Kulkarni

Designation :

Chief General Manager (Finance)

 

 

Name :

Mr. Dilip Ranade

Designation :

General Manager [Vin]

 

 

Name :

Mr. Mukund M. Patil

Designation :

General Manager (Fertilizer Marketing)

 

 

Name :

Mr. B.B. Prasad

Designation :

General Manager (Tech) Thal

 

 

Name :

Mr. Sudhir Parkhi

Designation :

General Manager (HR) Corporation

 

 

Name :

Mr. Bhaskar Das

Designation :

General Manager [project] Thal

 

 

Name :

Mr. P.B. Asai

Designation :

General Manager (HWP and Chem): Thal

 

 

Name :

Mr. Vikas D. Bhat

Designation :

General Manager (C)

 

 

Name :

Mr. P.S. Patare

Designation :

General Manager (Fertilizers Marketing)

 

 

Name :

Mr. K.C. Prakash

Designation :

Company Secretary

 

 

Name :

Mr. B. Nagraj

Designation :

General Manager (Research and Development)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2010

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Central Government / State Government(s)

510,314,900

92.50

Sub Total

510,314,900

92.50

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

510,314,900

92.50

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

4,041,180

0.73

Financial Institutions / Banks

646,863

0.12

Insurance Companies

7,084,525

1.28

Foreign Institutional Investors

689,148

0.12

Sub Total

12,461,716

2.26

(2) Non-Institutions

 

 

Bodies Corporate

6,778,295

1.23

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

16,370,177

2.97

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

2,612,020

0.47

Any Others (Specify)

3,150,992

0.57

Clearing Members

2,176,759

0.39

Non Resident Indians

956,033

0.17

Overseas Corporate Bodies

900

-

Trusts

17,300

-

Sub Total

28,911,484

5.24

Total Public shareholding (B)

41,373,200

7.50

Total (A)+(B)

551,688,100

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

551,688,100

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Marketer of chemical fertilizers and industrial chemicals.

 

 

Products :

Item Code Number (ITC CODE)

Product Description

3102.10

Urea

3105.20

Complex Fertilizers

2814.10

Ammonia 

 

PRODUCTION STATUS

 

As on 31.03.2010 

                                                                                                                       

Metric Tonnes

Products

Licensed Capacity

Installed * Capacity (As certified by the Management)

“Annual Production

Without Adjustment for Shortages / Excesses”

Ammonia

116000

115500

87856

Ammonia (Trombay-V)

297000

297000

330235

Ammonia (Thal)

NA

990000

1128320

Urea (Trombay-V)

427500

330000

306905

Urea (Thal)

NA

1706800

1782171

Suphala15:15:15 (Complex Fertilizers)

300000

300000

490000

Suphala 20:20:20 (Ammonium Nitrate Phosphate)

361000

361000

17070

Methanol

37500

49500

44103

Ammonium Bicarbonate

NA

4000

24722

Argon (million NM3)

NA

3

1.9

Aragon (million NM3) Thal

N.A

8

4.2

Nitric Acid (100%)

101600

105600

99710

Nitric Acid (100%) (Trombay IV)

255000

247500

263105

Sulphuric Acid (98%)

99000

99000

59753

Phosphoric Acid

32000

30000

17040

Dilute Sulphuric Acid

NA

0

64194

Sodium Nitrate/Nitrite

4000

4000

5360

Concentrated Nitric Acid

NA

20000

18051

Methylamines - (Trombay)

4000

4000

5887

Methylamines - (Thal)

NA

11400

11056

Ammonium Nitrate (100%)

54000

54000

164288

Dimethyl formamide

NA

2500

3161

N-15 (Grams)

NA

800

0

T. G. Urea (Thal)

NA

0

8529

Di Methyl Acetamide

NA

5000

1642

Carbon Monoxide Plant (million NM3)

NA

9.5

4.5

Biola (Bio Fertilizer)

150

150

310

Microla (Ltrs)

100000

100000

183250

Formic Acid

NA

10000

5341

Sujala 19:19:19

NA

150

4010

* Relied upon by Auditors without verification, this being a technical matter.

 

 

GENERAL INFORMATION

 

No. of Employees :

4278 (Approximately)

 

 

Bankers :

v      State Bank of India

Swastik Chamber, Chembur, Mumbai-400071, Maharashtra, India.

 

 

Facilities :

SECURED LOANS

                                                                                                (Rs. in millions)

Particulars

31.03.2010

31.03.2009

Term Loan from Banks

 

 

1. Rupee Loan from Banks

 

 

a. Loan from State Bank of Hyderabad (SBH)'

A term loan facility of Rs.1000 millions sanctioned by SBH availed by the Company is secured by hypothecation with, first pari passu .charge on Ammonia V plant at Trombay for a value Rs.1000 millions (Amount repayable within one year Rs. 285.700 millions P.Y. Rs. 285.700 millions.

0.000

285.700

b. Loan from State Bank of Bikaner and Jaipur (SBBJ) A term loan facility aggregating to Rs.1064.100 Millions sanctioned by SBBJ availed by the company are secured by hypothecation with first charge on project assets of Con. Nitric Acid Plant at Trombay and Agron Recovery Plant at Thai and parri passu first charge basis on the project asset of Rapidwall Plant at Trombay.

(Amuont repayable within one year Rs.167.300 millions P.Y. Rs.95.000 Millions)

931.000

926.000

Loan from Syndicate Bank

A loan of Rs.700.000 Millions sanctioned by and availed from Syndicate Bank is secured by hypothecation of Plant and Machinery pertaining to manufacture of granulated Ammonium Nitrophosphate  Plant at Trombay.

(Amount repayable within one year Rs.53.300 Millions P.Y. Nil)

700.000

0.000

Loan from New India Cooperative Bank Limited.

A loan of Rs.240 Millions sanctioned by and availed from New India Cooperative Bank is secured by first pari passu charge by way of hypothecation on all movable fixed assets of the Menthol Plant with a minimum security cover of 1.25 times of the amount borrowed from this Bank.

(Amount repayable within one year Rs.53.300 Millions P.Y. Nil)

240.000

0.000

Loan from Kotak Mahindra Bank.

An amount of Rs.650.000 Millions borrowed as of 31.03.2010 out of Rs.750.000 Millions sanctioned by Kotak Mahindra Bank is secured by first pari passu charge by way of hypothecation on all fixed assets of the Methanol Plant with a minimum security cover of 1.25 times of the amount borrowed from this Bank.

(Amount repayable within one year Rs. Nil P.Y. Rs. Nil)

650.000

0.000

 

 

 

2. Foreign Currency Loan l External Commercial Borrowings

 

 

a. Loan from ICICI Bank Limited  (ADB)

A term loan (USD 5.50 million availed by the company during 2004-05 was secured by hypothecation of all tangible movable Machinery and Plant required for up gradation of High Pressure Nitric Acid Plant at Trombay (both present and future),whether installed or not and whether lying loose or in case at site or in transit or which may at any time hereafter during the continuance of this security be installed or lying loose or in case or being. in or upon or about the borrower's premises arid godown at Trombay or wherever else the same may be or be held by any party

anywhere to the order and disposition of the Company or in course of transit to the Company.(Amount repayable within one year Rs. 12.400 millions P.Y. Rs. 56.000 millions)

12.400

70.100

b. Loan from Calyon Credit Agricole CIB Singapore (Calyon)

 Term Loan of JPY 109,176,141 availed by the Company from Calyon, is secured by hypothecation on pari passu first charge basis on the project assets of Rapid wall Plant at Trombay. (Amount repayable within one year Rs. 10.600 millions P.Y. Rs. 5.700 Millions)

47.600

56.600

B. Working Capital Loans

Cash Credit Account (Cash Credit Account is secured by hypothecation of entire stocks of raw materials and finished goods, consumable stores’ and spares, stock in transit, book debts)

0.000

14.600

C. Interest accrued and due

0.000

7.100

Total

2581.000

1360.100

 

UNSECURED LOANS

                                                                                                    (Rs. in millions)

Particulars

31.03.2010

31.03.2009

 

 

 

Short Term Loans from Banks

10727.400

12874.600

Interest accrued and due

0.000

7.600

Total

10727.400

12882.200

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

JCR  and Company

Chartered Accountants

Address :

Mumbai

Name :

K S Aiyar and Company

Chartered Accountant

Address :

Mumbai

Name :

Mr. Anil Agrawal

Chartered Accountant

Address :

B – 139, Kalkaji, New Delhi – 110019, India

 

 

Subsidiaries :

v      Rajasthan Rashtriya Chemicals and Fertilizers Limited

 

 

Joint Ventures ;

v      Fact-RCF Building Products Limited

v      Urvarak Videsh Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2009

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

800000000

Equity Shares

Rs. 10/- each

Rs. 8000.000 millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

551688100

Equity Shares

Rs. 10/- each

Rs. 5516.900

millions

 

(Of the above 112528100 shares were allotted as fully paid-up pursuant to a contract without payment being received in cash)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

5516.900

5516.900

5516.900

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

12854.500

11213.500

9872.200

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

18371.400

16730.400

15389.100

LOAN FUNDS

 

 

 

1] Secured Loans

2581.000

1360.100

11040.400

2] Unsecured Loans

10727.400

12882.200

1394.400

TOTAL BORROWING

13308.400

14242.300

12434.800

DEFERRED TAX LIABILITIES

1637.400

1487.100

1660.900

 

 

 

 

TOTAL

33317.200

32459.800

29484.800

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

12427.100

10771.600

10541.400

Capital work-in-progress

1400.500

2365.800

1146.800

 

 

 

 

INVESTMENT

153.000

352.500

3596.900

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
4095.900
6926.900

8655.200

 

Sundry Debtors
8589.800
17881.700

11375.600

 

Cash & Bank Balances
7846.500
4118.000

493.100

 

Other Current Assets
12245.600
6477.500

0.000

 

Loans & Advances
2022.000
2779.600

2313.200

Total Current Assets
34799.800
38183.700

22837.100

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
13234.800
16476.100

5893.800

 

Provisions
2228.400
2743.900

2758.900

Total Current Liabilities
15463.200
19220.000

8652.700

Net Current Assets
19336.600
18963.700

14184.400

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

6.200

15.300

 

 

 

 

TOTAL

33317.200

32459.800

29484.800

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

27101.000

30556.400

26290.200

 

 

Subsidy on Fertilizer

29320.100

53103.400

25112.500

 

 

Other Income

1797.500

1189.000

876.100

 

 

TOTAL                                     (A)

58218.600

84848.800

52278.800

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Purchase of Bought out Products

18460.900

27404.100

 

 

 

Material Consumed

17124.400

19738.600

 

 

 

Salaries, Wages, Bonus, etc.

3586.500

3822.100

 

 

 

Power & Fuel

5521.200

13690.300

 

 

 

Freight and Handling charges

5291.300

5734.000

 

 

 

Excise Duty

1.800

(4.100)

 

 

 

Repairs and Maintenance

733.600

698.800

 

 

 

Other Expenditure

1057.800

4804.800

 

 

 

Increase/(Decrease) in Finished Goods

924.300

3847.500

 

 

 

Research and Development

23.300

16.700

 

 

 

Loss on Impairment of Assets

(299.600)

(0.500)

 

 

 

Provision For Doubtful Debts/Claims/Advances

52.100

9.800

 

 

 

Provision For Bad Debts / Claims / Loans / Irrecoverable Amount Written off

0.100

80.100

 

 

 

Provision for obsolescence of stores and spares

13.600

16.500

 

 

 

Bad Debts Written off

617.500

5.400

 

 

 

Transfer Credits

(93.600)

(245.900)

 

 

 

Prior period adjustments

0.200

0.100

 

 

 

TOTAL                                     (B)

53015.400

79618.300

48363.800

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

5203.200

5230.500

3915.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

705.500

1107.200

662.500

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

4497.700

4123.300

3252.500

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1055.600

866.300

831.800

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

3442.100

3257.000

2420.700

 

 

 

 

 

Less

TAX                                                                  (I)

1093.400

1141.200

839.200

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

2348.700

2115.800

1581.500

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

1641.000

1341.300

NA

 

 

Dividend

606.900

662.000

NA

 

 

Tax on Dividend

100.800

112.500

NA

 

BALANCE CARRIED TO THE B/S

0.000

0.000

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods calculated on FOB basis

25.800

22.300

1.300

 

 

Freight and Insurance recovered

0.000

0.000

0.000

 

 

Tech. manpower fees

2.000

0.000

0.000

 

TOTAL EARNINGS

27.800

22.300

1.300

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1998.600

7470.900

2424.000

 

 

Stores & Spares

150.700

115.600

152.800

 

 

Capital Goods

46.400

207.200

185.200

 

TOTAL IMPORTS

2195.700

7793.700

2762.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

4.26

3.84

2.87

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

(1st Quarter)

30.09.2010

(2nd Quarter)

31.12.2010

(3rd Quarter)

Net Sales

7913.400

15628.600

15335.500

Total Expenditure

7486.300

14474.200

14389.300

PBIDT (Excl OI)

427.100

1154.400

946.200

Other Income

110.600

91.300

291.800

Operating Profit

537.700

1245.700

1238.000

Interest

(12.400)

67.500

0.000

Exceptional Items

1.700

(1.100)

0.000

PBDT

551.800

1177.100

1238.000

Depreciation

255.600

265.500

284.600

Profit Before Tax

296.200

911.600

953.400

Tax

98.400

302.800

269.800

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

197.800

608.800

683.600

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

197.800

608.800

683.600

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
4.03
2.49

3.02

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
12.70
10.66

9.21

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
7.29
6.16

6.35

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.19
0.19

0.16

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.57
1.22

0.56

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.25
1.93

2.64

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

Subject was incorporated in 1978 with the reorganisation of the erstwhile Fertiliser Corporation of India. Subject manufactures and markets a wide range of chemical fertilisers and a series of industrial chemicals. It has plants at Trombay and Thal.

 
Subject set up purge gas recovery units in order to recover ammonia, hydrogen, methane and argon from the purge gas coming out of the ammonia plants at Trombay and Thal. A dimethyl formamide plant (cap.: 2500 tpa) and a methylamine plant with a capacity of 5000 tpa were installed at Thal in 1991-92. It commissioned a dimethyl acetamide plant at Thal in 1993-94. In 1994-95, Subject signed a MoU with Saudi Formaldehyde Chemical Company, to set up a chemical complex in Saudi Arabia for the manufacture of 300 tpa of methanol. At present, Subject has four urea fertiliser plants, two complex fertiliser plants, four ammonia plants and several industrial product plants consisting of heavy water, methyl alchohol, methylamines, nitric acid, sulphuric acid, phosphoric acid, ammonium bicarbonate, sodium nitrate, sodium nitrite, dimethyl formamide and dimethyl acetamide. 

 
During 1998-99, the company has signed MOU with UCB S.A. Chemicals, Belgium, an internationally reputed chemicals manufacturing and marketing company having units all over the world, to produce 20000 MTPA, of Methylaminies and its derivatives at Thal. It has also commissioned 10000 MTPA Formica Acid Plant at Thal. 

 
The Company is envisaging a joint venture project for manufacturing DAP at Udaipur in Rajashtan with Hindustan Zinc Limited, Udaipur and Rajasthan State Mines and Minerals Limited and the final decision on feasibility project is awaiting. The company has invested around Rs 5000.000 millions for the upgradation of its plants at Trombay and is converting most of its existing plants to operate on natural gas. 

 
During 2000-2001, the company entered into an agreement with Metgas a subsidiary of Enron, for long term supply of regassified LNG. The Company has also recently commissioned the Naptha Feed Supplement Project at Thal, which would enable the plant to run at enhanced capacity by utilising alternate feed Naptha partly along with available gas from GAIL. To reduce steam consumption from Urea Plant at Thal the company implemented an energy saving optimization scheme at a cost of Rs. 400.000 millions.  

 
A major expansion plan at Thal plant consisting of 1350 MTPD Ammonia and 2200 MTPD urea plan is under awaiting the final approval from the Government of India at an estimated capital outlay of Rs.14460.000 millions. The Techno-economic Feasibility of Methylamine for expansion is under preparation. The total cost for the expansion is estimated to be Rs. 250.000 millions. The Disinvestment Ministry has started the process of disinvestment of the company and the Government is proposing to reduce 51% of its equity to a strategic partner, with transfer of Management Control. 

 
Subject has completed the project of modernization of the front end of H.P. Nitric Acid Plant at its Trombay unit, consisting of air compressor, reactor etc at cost of Rs. 858.100 millions in January 2005. The Company has planned to revamp the Trombay- V Ammonia Plant by upgrading the technology to improve efficiency and reduce energy consumption at an estimated cost of Rs. 2490.000 millions and this project will be completed by April 2006. The company has also planned to increase the production capacity of Methylamine plant at Thal to produce additional 6400 MTPA and this project is estimated at a cost of Rs.297.800 millions. Further the company has planned to setup 1 X 2000 MTPD Ammonia Plant and 1 X 3200 MTPD Urea Plant along with power generation, offsite, utilities and product handling facilities at Thal and this project is estimated at a cost of Rs. 18410.000 millions. The company has also planned for adopting Cryogenic separation of tail gas generated in Hydrogen Recovery Unit of Ammonia Plants at Thal, at an estimated cost of Rs. 700.000 millions.

 

Highlights for the year 2009-2010

 

The Company achieved a turn over of Rs.56971.800 millions compared to Rs.84553.200 Millions in the previous year. The turnover is lower by Rs 27581.400 millions during the year compared to previous year mainly due to lower imports of urea by Government of India and discontinuance of costly feed stock of Naptha leading to less subsidy realisation. The total income from operations was Rs. 58262.500 millions as against Rs. 85384.300 millions during the previous year. The Company achieved a gross profit of Rs.4396.600 millions as against Rs. 4872.000 millions. The net Profit before Tax at Rs. 3442.100 millions as against Rs. 3257.000 millions registered an increase of 5.68 % despite lower gross profit mainly due to substantial reduction in the net interest. The Net Profit after Tax during the current year, is higher at Rs.2348.700 millions as against Rs.2115.800 millions in the previous year registering an increase of 11 % over previous year. The net Interest post during the year has been Rs. 198.700 millions compared to Rs.749.300 millions during the previous year due to good treasury and foreign currency management which ensured reduction in interest cost and gain in foreign exchange transactions. The Company received 'MOU Excellent' rating for 2008-2009 and is likely to get the same for 2009-10 from Ministry of Heavy Industries and Public Enterprises.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS:

 

OPERATIONAL RESULTS:

 

 PRODUCTION:

 

 Fertilizers:

 

The Company produced 25.96 lakh MT of fertilizers (Urea-20.89 lakh MT, Suphalal 5:15:15- 4.90 lakh MT and Suphala 20:20-0.17 lakh MT) during the year as against 23.75 lakh MT (Urea-19.04 lakh MT and Suphalal 5:15:15- . 4.71 lakh MT) produced in the previous year and achieved overall capacity utilisation of 96.23 % as against 88.030% during the previous year. The capacity utilisation of the Urea plants was to the extent of 102.56%. As regards complex fertilizers, Suphala [15:15:15] plant produced to the extent of 163.33% and Suphala 20:20 (ANP) produced 4.73%. In terms of nutrients, the Company produced 10.38 lakh MT of Nitrogen (N), 0.77 lakh MT of Phosphate (P2O5) and 0.74 lakh MT of Potassium (K2O) during the year as compared to 9.46 lakh MT of N, 0.71 lakh MT of P2O5 and 0.71 lakh MT of K2O during the previous year.

 

The performances of the units are given below:

.

Thai Unit:

 

Thai unit produced 17.82 lakh MT of Urea during the year compared to 19.04 lakh MT produced in the previous year. The unit achieved a capacity utilisation of 104.41 % as compared to 111.55% during the previous year. The unit produced 11.28 lakh MT of Ammonia compared to 10.97 lakh MT during previous year. The Thai unit of the company was using naphtha as an alternative feedstock to overcome the gas shortage. With the availability of Reliance gas, the Company has stopped the usage of naphtha. Naphtha is a rich source of Carbon dioxide whereas gas does not provide the same level of Carbon dioxide required for converting entire ammonia produced into urea and hence the decline in urea production at Thai. The energy consumption per MT of Urea was 6.297 Qcal/ MT (6.472 Gcal in the previous year). In terms of nutrients in the fertlisers, the unit produced 8.20 lakh MT of N during the year compared to 8.76lakh MT during the previous year.

 

Thai unit of your Company bagged following awards during the year:

 

  1. National Energy Conservation award in appreciation of achievements in Energy conservation in Fertilizer Sector for the year 2009 was awarded by Government of India, Ministry of Power (2nd Prize).
  2. State Level award for excellence in Energy consumption and management for the year 2007-08 awarded on 5th July, 2009.
  3. Green Tech Environment Excellence Award in Gold Category for the year 2009.

 

The unit, continued to be certified for ISO-9001, ISO- 14001 and ISO18001 under Integrated Management System.

 

Trombay Unit:

 

The Trombay Unit produced 3.07 lakh MT of Urea, 4.90 lakh MT of Suphala 15:15:15 and 0.17 lakh MT of ANP during the year compared to 4.71 lakh MT of Suphala 15:15:15 produced during the previous year. During the year company started receiving gas from KG Basin from April /May 2009. Government of India also declared a special dispensation for the Trombay Urea plant under the NPS III. As a result of this, the company could restart its Urea plant at Trombay after a gap of 6 years and it is very gratifying to note that the plant after initial problems has stabilized and running very efficiently.

 

ANP plant also started its operation and produced 17070 MT. The unit achieved an overall capacity utilization of 82.14 % compared to 47.53% during the previous year. In terms of Nutrient values, the unit produced 2.18 lakh MT of N during the year (previous year 0.71 lakh MT), and produced 0.77 lakh MT P2O5 ( previous year 0.71 lakh MT) and 0.74 lakh MT K2O (previous year 0.71 lakh MT).

 

The unit was bestowed with GREENTECH environment excellence award for "Environment Excellence In Fertilizer Sector" for the year 2008-09.

 

Industrial Products:

 

The Company is one of the prime chemicals manufacturers in the country producing several Industrial Chemicals at its two units. During the year, the Company produced 1.19 lakh MT of various major Industrial Chemical products compared to 1.30 lakh MT during the previous year. The Company produces, amongst others, Methanol, Methylamines and derivatives, Ammonium Nitrate, Sodium Nitrate/ Nitrite, Ammonium Bi-Carbonate, Formic Acid etc.

 

MARKETING PERFORMANCE:

 

Fertilizer Division:

 

The Company achieved sales volume of 40.73 lakh MT during 2009-10 as compared to 48.33 lakh MT in the previous year. The Company sold 28.62 lakh MT of Urea, 4.87 lakh MT of Suphala 15:15:15, and 0.16 lakh MT of Suphala 20:20 and 7.08 lakh MT of other bought out products such as DAP, MOP, etc. compared to 36.64 lakh MT of Urea, 5.03 lakh MT of Suphala 15:15:15, and 6.66 lakh MT of other bought out products, respectively during the previous year. The Company achieved highest sales in Biofertilizers (Biola), Micronutrients (Microla) and 100% water soluble fertilizer (Sujala), all produced by the Company. The total sale of- manufactured fertilizers during 2009-10 was 25.99 lakh MT as against 25.17 lakh MT in 2008-09 registering a nominal increase of 3%. The total sales value of manufactured fertilizers during the period 2009-10 was Rs. 12677.100 millions compared to Rs. 12319.800 millions in the previous year.

 

The total sale during the year was lower by 7.60 lakh MT, i.e. 36% mainly due to lower imports of urea by the Government of India. This was partly off-set by higher sales of Own-manufactured products. The total sales value

of bought out fertilizers during the period 2009-10 was lower at Rs.7801.900 millions compared to the previous year figure of Rs. 11290.500 millions.

 

The Marketing division of the Company received the FAI's prestigious "Excellence in Crop productivity improvement" for having achieved 50% increase in yield of Wheat .at Narullaganj, Sehore, Madhya Pradesh.

.

Industrial Products Division:

 

Despite various constraints due to global recession during the second half of the financial year, Industrial Products Division achieved turnover of Rs. 7172.800 millions as against the sales turnover of Rs.7839.500 millions during the previous year. Ammonium Nitrate (Melt), Methanol, Methylamines and cone. Nitric Acid contributed significantly to the turnover.

 

Exports:

 

During the year, the Company exported 1220'MT of Suphala 15:15:15 worth Rs 25.800 millions Considering the products line of the Company, scope for exporting and earning foreign exchange is very limited.

 

FUTURE PLANS OF FERTILIZER MARKETING:

 

The Company has plans to increase the sales of all fertilizers about 55 lakh MT in 2010-11. The Company is also exploring the possibility of increasing its presence in SSP market to increase turnover and profitability. The Company also intends to import and market complex fertilizers and develop customised/ fortified fertilizers like Boronated Suphala and Zincated urea, opportunity provided in Nutrient based subsidy.

 

The Fertilizer Industry:

 

Government of India has introduced a Nutrient Based Subsidy (NBS) in place of product wise subsidy effective from 1.4.2010. NBS implies that subsidy amount payable to the Company will be fixed annually for each nutrient of the products sold based on the nutrient content. The nutrient based subsidy so decided would be converted into subsidy per tonne for each subsidized fertilizer. In the initial phase only DAP; MOP, MAP, TSP, 12 grades of complex fertilizers, Ammonium Sulphate (Caprolactum Grade) and SSP are proposed to be covered. Urea is not part of NBS now. Any variant of these fertilizers with secondary and micro-nutrients as provided under FCO would also be eligible for subsidy.

 

The other major features of NBS are as follows:

 

The distribution and movement of these fertilizers would continue to be monitored through Fertilizer Monitoring System (FMS) like at present 20% of these fertilizers produced would be under movement control under the Essential Commodities Act 1955. The imports of these fertilizers are placed under OGL and subsidy would be admissible on all products as mentioned above except Ammonium Sulphate. Rail freight would be reimbursed on actuals whereas the primary road freight would be restricted to equivalent rail freight. Secondary road freight is not proposed to be reimbursed as a sum of Rs. 300 per MT is already built into the NBS. The NBS would be initially paid through the industry.

 

The Company Welcomes the move which is a step in the direction of decontrol. As per the scheme, a unit is aware before hand of its concession even before the year commences and will enable the unit to draw-up its production strategy. The Companies can negotiate with the suppliers of raw materials for better prices by offering long term contracts and by bringing P and K fertilizers under Open General Licence (OGL), it is ensured that there

would be healthy competition. The Company can import fertilizers whenever it's cost of production is not viable compared to the realization and thereby maintain its presence in the market. NBS Will also encourage units to develop customized fertilizers.

The Company feels that there is an opportunity in this challenge.

 

New Projects:

 

Additional Ammonia / Urea Plant at Thai:

 

Considering the growing demand of nitrogenous fertilizers, a proposal for setting up an additional ammonia urea complex at Thai is under the consideration of the Department o1 Fertilizers (DOF). The Project, comprises setting up 1 x 2200 MTPD ammonia plant and 1 x 3500' MTPD Urea plant along with power generation, offsite, utilities and product handling facilities. Draft techno-economic feasibility report (TEFR) has been prepared by PDIL Further, pre-project activities are in hand. The estimated cost of the project is Rs. 44000.000 millions.

 

Other Major Projects:

 

The Company has taken up COM Nitric Acid Project for implementation and has registered the project with UNFCCC, the registering authority for CDM projects.

 

The Company is also working on several projects to add new products, augment production, increase efficiencies,

reduce environment emissions and reduce cost. Some of the projects conceived are Coal based chemicals, Port based logistic system etc.

 

The Company has been actively pursuing an opportunity to set up Joint Venture Companies in some Countries with abundance of raw materials like rock phosphate, phosphoric acid, ammonia etc.

 

A coal gasification based Fertilizer project is proposed at Talcher in Orissa wherein a consortium of GAIL, Coal India Limited and the company would execute the project. The project is in a preliminary stage of development.

 

Subsidiary and Joint Venture Companies:

 

Rajasthan Rashtriya Chemicals and Fertilizers Limited, Jaipur

 

The Joint Venture Company incorporated to undertake the project for manufacturing'850 MTPD of DAP has not • been 'functional as the partners are yet to take decision on investment in the project.

 

FACT-RCF Building Products Limited., Kochi

 

The Company has formed a Joint Venture Company with Fertilizers and Chemicals Travancore Limited (FACT) by incorporating FACT-RCF Building Products Limited to set up a Rapidwall project at Kochi. Both RCF and FACT have 50:50 equity holding in the Company. The plant will use gypsum available with FACT to produce load bearing wall panels, wall plaster and wall putty through Rapidwall technology. The project is actively progressing. Civil jobs are in the final stages and mechanical erection of the plant is in advanced stage. The plant is expected to be commissioned in the first half of the current financial year.

 

Urvarak Videsh Limited:

 

The JV Company is exploring the possibility of revival of old unit of HFCL at Barauni and has engaged PDIL for consultancy work for EIA and technology selection. The JV Company would decide further course of action based on feasibility of the project. The Company has been incorporated with an authorised capital of Rs 50.000 millions and has a paid up capital of Rs. 1.500 millions of which the Company's contribution is Rs 0.500 million.

 

RCF HM Construction Solutions Private Limited

 

The Company has incorporated a 50:50 Joint Venture Company with First Future Properties Private Limited for marketing the Rapidwall products with an authorised capital of Rs 50.000 millions and paid up capital of Rs 1.000 million which will be suitably increased as per business requirement. The Company has started the initial activity of seeding the market with the Rapidwall products manufactured by the Company.

 

 

FIXED ASSETS

 

v      Land (Freehold)

v      Land (Leasehold)

v      Roads and Culverts

v      Buildings

v      Railway sidings

v      Plant and Machinery

v      Water System, Sewerage and Drainage

v      Miscellaneous Equipments

v      Furniture, Fixtures and Office Appliances

v      Transport Vehicles

v      Assets held for disposal

 

Intangible Assets

 

v      Computer Software

 

 

AS PER WEBSITE DETAILS:

 

Shri U.S. Jha has taken over as Chairman and Managing Director of Rashtriya Chemicals and Fertilizers Limited (RCF) with effect from 1st August 2005. Prior to this, Shri Jha held the charge of Director (Marketing) since March 1999. During this period he has introduced several innovative measures to improve services to the farmers. He also takes keen interest in common causes of fertilizer industry. He was also holding additional charge of Chairman-cum-Managing Director of Madras Fertilizers Limited (MFL), Chennai for 15 months from June 2001 to September 2002.

 

A postgraduate in Physics from the Patna University Shri Jha taught Physics for a year in Patna University, he joined Indian Railway Traffic Service in 1974. He held various operational posts in the Railways having deep insight into logistics of major commodities like coal, steel, raw materials, cement, oil, fertilizers transported by Railways. Prior to joining RCF, he held the charge of Executive Director (Freight Marketing) in the Ministry of Railways where he was responsible for freight marketing for entire Indian Railways.

 

Outside Railways, he has had five and half year's stint as Joint Commissioner in the Department of Fertilizers, Government of India where he was incharge of fertilizer imports, shipping and distribution of fertilizers in the entire country. He held this post from 1990 to 1995 and had varied experience in different facets of fertilizer production and distribution. He was closely associated with policy measures taken by the Government in the wake of de-control of phosphatic and potassic fertilizers to arrest sharp distortion in the balanced use of fertilizer.

 

Both within Railways and outside Railways he has attended several workshops, seminars and conferences within the country and outside. He has also read a number of papers on these fora. He has been on the Board of several fertilizer and railway companies.

 

Director(Marketing)

 

Shri. J.Kohareswaran, has been appointed by Government of India as Director (Marketing) w. e. f. 28.9.2006. Before taking over the charge of     Director (M), he was Executive Director (Marketing) and being a Cost Accountant, he worked in various capacities in Finance department in both units of the Company and also in the  Audit department.He is a member of the Board’s Management Committee. He is on the Board of RRCFL and FRBL.

 

Director (Finance)

 

Shri Gautam Sen, has been appointed by the Government of India as Director [Finance] w. e. f. 14.7.2008. Shri Sen is M.Com.,Chartered Accountant and Cost Accountant. He has vast experience in Finance and Accounts discipline in private and public sector organisations. Prior to his joining of RCF, he was working with M/s Bharat Earth Movers Limited (BEML), Bangalore, as Executive Director [Finance]. Before joining BEML, he had worked for a period of 12 years with M/s GSFC Limited, Baroda, where he worked as Executive Director [Finance] for 3 years.

 

Director (Technical)

 

Shri. Manoj Priya has taken over as Director (Technical) w. e. f. 30th December 2008.  Prior to joining as Director (Technical) he was Executive Director (Projects and Commercial). He is having an experience of almost 34 years in Fertilizer Industry. He did his B.E. in Mechanical Engineering from BIT Sindri, joined FCI in December 1974 at Gorakhpur Unit as Jr. Executive Trainee and posted at Trombay in August 1975.  He has worked in various projects from construction to commissioning at Trombay IV, Trombay V and the grass-root projects at Thal. He has worked in maintenance and operations of various plants at Thal and Trombay Unit. In 1994 he obtained his international MBA qualification from ICPE, University of Ljubljana Slovenia; for which he was nominated by Department of Public Enterprises, Government of India.  He was also associated with the joint venture Oman India Fertilizer project during 1995-98. He took over as General Manager (Operations) in January 2005, Chief General Manager (Commercial) in July 2006 and Executive Director (Projects and Commercial) in April 2008. As Executive Director (P and C) he was in charge of projects at Thal and Trombay and commercial department looking after imports, purchase, shipments, stores, railway operations, MES/PHS. In addition to operation and maintenance of plants, he has a wide experience of commercial activities, joint ventures, international contracts. He is a member of the Boards’ Management Committee and Audit Committee.

 

Shri Mathew C. Kunnumkal, has been appointed as director  w. e. f. 5.2.2008.  Shri Mathew C. Kunnumkal, is an Administrative Services (IAS) officer and is presently, Addl.  Secretary and Financial Advisor to Government of India, Ministry of Chemicals and Fertilizers, Department of Fertilizers. Shri Mathew C.Kunnumkal has varied and rich experience not only as an IAS Officer  but also being on the Board of several companies. Presently, he is  director on the Boards of FACT, Krishak Bharati Co-operative Limited [KRIBHCO], National Fertilizers Limited [NFL], Hindustan Antibiotics Limited [HAL], and Hindustan Organic  Chemicals Limited (HOCL).

 

Shri Deepak Singhal IAS, is the part time Government Director of the Company. He is presently Joint Secretary in Department of Fertilizers.

 

Shri I.C. Srivastava retired IAS officer is Independent Director and is Chairman of Audit Committee. He has held several senior positions in Central, State Governments and PSUs including as CMD of  Rajasthan Mines and Minerals Limited

 

Shri Anil Agrawal, is M.Com., FCA., ACS and several other qualifications. He is Chartered Accountant by profession and possesses varied experience in the fields of Account, Audit, Taxation, Financing and Project preparation, management, Company Secretarial work etc. of various Companies. Shri Agrawal is presently on the Board of Directors of M/s MECON Limited and partner in M/s Agrawal Anil and Company Delhi.

 

Dr. Misra is a highly qualified Technocrat. He is B.Tech [Chem..Engg] from IIT Kanpur, MS in Chemicals Engineering from Tufts University and Ph.D in Polymer Science and Engineering from university of Massachusetts. After working in Monsanto for three years, he joined IIT Delhi in 1977 where he served as the head of the Centre for Polymer Science and Engineering during 1991-94 and as Dean, Alumini Affairs and International Programmes during 1997-2000. He was  Director, IIT, Mumbai. Dr. Misra is a Fellow of Indian national Academy of Engineering, National Academy of Science India [NASAI], Indian Advisory panel of the Government of Singapore and various other institutions. Dr. Misra has varied and rich experience not only as Technocrat but also being on the Board of several Companies. Presently he is Chairman, Intellectual Ventures India, Bangalore.

 

 

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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 :

The 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.

 

The 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

UK Pound

1

Rs. 73.24

Euro

1

Rs. 62.80

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

9

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

65

 

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

--

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.