MIRA
INFORM REPORT
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Report Date : |
17.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
KRIBHCO SHYAM FERTILIZERS LIMITED |
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Registered
Office : |
C – 165, 1st Floor, Naraina Industrial Area, Phase – I, New
Delhi – 110028 |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
08.12.2005 |
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Com. Reg. No.: |
55-143452 |
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Capital
Investment / Paid-up Capital : |
Rs.8000.571 Millions |
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CIN No.: [Company Identification
No.] |
U2412DL2005PLC143452 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELK07642F |
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PAN No.: [Permanent Account No.] |
AACCK6999B |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Subject is engaged in Manufacturing of Ammonia and Urea. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 26250000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
some accumulated losses recorded by the company. However, Trade relations are
reported as fairs. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
C – 165, 1st Floor, Naraina Industrial Area, Phase – I, New
Delhi – 110028, India |
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Tel. No.: |
91-11-25892542 |
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Fax No.: |
91-11-25793752 |
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E-Mail : |
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Website : |
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Corporate Office : |
Kribhco Bhawan, A -10, Sector – 1, Noida – 201301, District. Gautam
Budh Nagar, Uttar Pradesh, India |
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Tel. No.: |
91-120-2443701 |
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Fax No.: |
91-120-2545464 |
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Factory : |
Village and Post Office : Piprola, Shahjahanpur – 242001, Uttar Pradesh,
India |
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Tel. No.: |
91-5842-240001/04 |
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Fax No.: |
91-5842-240005 |
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E-Mail : |
DIRECTORS
As on 31.03.2011
|
Name : |
Dr. C. P. Singh Yadav |
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Designation : |
Director and Chairman |
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Date of Birth/Age : |
52 Years |
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Name : |
Mr. V. P. Kaushik |
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Designation : |
Managing Director |
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Date of Birth/Age : |
65 Years |
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Name : |
Mr. V. R. Patel |
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Designation : |
Non - Executive and Non – Independent Director |
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Date of Birth/Age : |
72 Years |
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Name : |
Mr. B. D. Sinha |
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Designation : |
Non - Executive and Non – Independent Director |
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Date of Birth/Age : |
59 Years |
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Name : |
Mr. Alok Tandon |
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Designation : |
Non - Executive and Non – Independent Director |
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Date of Birth/Age : |
50 Years |
KEY EXECUTIVES
|
Name : |
Mr. O. P. Gupta |
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Designation : |
Vice President |
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Date of Birth/Age : |
59 Years |
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Qualification : |
Bachelor in Chemical Engineering |
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Experience : |
35 Years |
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Name : |
Mr. Manu Malik, I. R. S |
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Designation : |
Chief Financial Officer |
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Date of Birth/Age : |
46 Years |
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Qualification : |
M.Com in Political Science |
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Experience : |
16 Years |
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Name : |
Mr. Bipin C. Phuloria |
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Designation : |
Company Secretary |
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Date of Birth/Age : |
41 Years |
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Qualification : |
B.Com in Law and M.Com |
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Experience : |
17 Years |
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Name : |
Mr. A. K. Dixit |
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Designation : |
Senior General Manager |
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Date of Birth/Age : |
61 Years |
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Qualification : |
B. Mechanical Engineering |
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Experience : |
34 Years |
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Name : |
Mr. C. Vishwanathan |
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Designation : |
General Manager (Finance) |
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Date of Birth/Age : |
62 Years |
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Qualification : |
B. A. |
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Experience : |
26 Years |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 2107.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Equity Share Capital |
|
Krishak Bharati Cooperative Limited (KRIBHCO)* |
680034286 |
85 |
|
STL Fertilizers Private Limited |
120022855 |
15 |
|
Shyam Basic Infrastructure Projects Private Limited |
2 |
0 |
|
Total |
800057143 |
100 |
* Including five shares held by individual as nominees
of KRIBHCO
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in Manufacturing of Ammonia and Urea. |
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Products : |
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Brand Names : |
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KRIBHCO |
PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
Unit |
Licensed
and Installed Capacity |
Actual
Production |
|
Urea |
MT |
2620/Day |
1027999.850 |
|
Ammonia |
MT |
1520/Day |
607080.300 |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
·
Syndicate Bank ·
WBSCB Limited ·
Vijaya Bank ·
Axis Bank Limited ·
Union Bank ·
HDFC Bank ·
Yes Bank |
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Facilities : |
Notes : Amount repayable
in respect of these loans within one year is Rs.3038.540 Millions (Previous
year Rs.3038.540Millions) Working Capital
Loan Working Capital
Demand Loan from HDFC Bank is secured by exclusive charge by hypothecation of
stocks and book debts etc. and further secured by corporate guarantees of
Krishak Bharati Cooperative Limited and Shyam Basic Infrastructure Projects
Private Limited UP Trade Tax Loan in lieu of Trade Tax Deferment
(Interest Free) Secured against
Bank Guarantee. The financial assistance has been provided by the Pradeshiya
Industrial and investment Corporation of Uttar Pradesh Limited. (PICUP) under
Trade Tax Deferment Scheme of State Govt. of Uttar Pradesh, and is re-payable
in one lump-sum within one month of the expiry of the period (i.e. five
years) for which the payment of trade tax has been deferred. Unsecured Loan Rs.3500.000 Millions (Previous Year RS.650.000 Millions) is guaranteed
by corporate guarantee of Krishak Bharati Cooperative Limited. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
G. K. Choksi and Company Chartered Accountants |
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Address : |
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Associate Enterprise : |
·
Krishak Bharati Co-operative Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs.10000.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
800057143 |
Equity Shares |
Rs.10/- each |
Rs.8000.571
Millions |
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Note :
680034286 Equity Shares of Rs.10/- each fully
paid up are held by Krishak Bharati Co-operative Limited
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
8000.571 |
8000.571 |
7000.500 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(1436.679) |
(1511.748) |
(326.299) |
|
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NETWORTH |
6563.892 |
6488.823 |
6674.201 |
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LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
11503.108 |
12781.192 |
13481.944 |
|
|
2] Unsecured Loans |
3500.000 |
650.000 |
1350.000 |
|
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TOTAL BORROWING |
15003.108 |
13431.192 |
14831.944 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
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|
|
|
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TOTAL |
21567.000 |
19920.015 |
21506.145 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
15553.994 |
16551.200 |
17181.540 |
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Capital work-in-progress |
391.724 |
129.040 |
627.112 |
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INVESTMENT |
1472.850 |
1525.705 |
1545.700 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
384.961
|
383.836 |
390.539 |
|
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Sundry Debtors |
2512.263
|
1235.911 |
1558.088 |
|
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Cash & Bank Balances |
1307.138
|
157.609 |
60.012 |
|
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Other Current Assets |
20.672
|
21.272 |
21.217 |
|
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Loans & Advances |
690.067
|
750.835 |
690.156 |
|
Total
Current Assets |
49150.101
|
2549.463 |
2720.012 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
433.334
|
510.408 |
223.310 |
|
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Other Current Liabilities |
259.976
|
264.142 |
284.879 |
|
|
Provisions |
73.359
|
60.843 |
60.030 |
|
Total
Current Liabilities |
766.669
|
835.393 |
568.219 |
|
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Net Current Assets |
4148.432
|
1714.070 |
2151.793 |
|
|
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|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
21567.000 |
19920.015 |
21506.145 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
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SALES |
|
|
|
|
|
|
|
Income |
10840.782 |
9251.975 |
12106.778 |
|
|
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Other Income |
136.635 |
137.350 |
88.910 |
|
|
|
TOTAL (A) |
10977.417 |
9389.325 |
12195.688 |
|
|
|
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|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/ Decrease in Stock |
(8.421) |
24.055 |
233.925 |
|
|
|
Materials and Stores |
7203.388 |
6061.198 |
8810.053 |
|
|
|
Employee’s Remuneration and Benefits |
283.870 |
220.257 |
197.873 |
|
|
|
Manufacturing and Other Expenses |
1367.492 |
1142.206 |
928.393 |
|
|
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TOTAL (B) |
8846.329 |
7447.716 |
10170.244 |
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|
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Less |
PROFIT/
LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2131.088 |
1941.609 |
2025.444 |
|
|
|
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|
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|
Less |
FINANCIAL
EXPENSES (D) |
922.418 |
1100.285 |
1381.735 |
|
|
|
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|
|
|
|
|
|
PROFIT/
LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1208.670 |
841.324 |
643.709 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1130.954 |
1123.505 |
1100.005 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ LOSS
BEFORE TAX (E-F) (G) |
77.716 |
(282.181) |
(456.296) |
|
|
|
|
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|
|
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|
Less |
TAX (H) |
4.000 |
0.000 |
52.183 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ LOSS
AFTER TAX (G-H) (I) |
73.716 |
(282.181) |
(404.113) |
|
|
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|
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|
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|
Add |
PRIOR PERIOD
ADJUSTMENT |
1.353 |
(903.268) |
5.405 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(1511.748) |
(326.299) |
72.409 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1436.679) |
(1511.748) |
(326.299) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Sale of 1st stage bucket |
0.000 |
0.000 |
1.117 |
|
|
TOTAL EARNINGS |
0.000 |
0.000 |
1.117 |
|
|
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|
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IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
12.687 |
20.690 |
126.166 |
|
|
|
Capital Goods |
28.118 |
0.000 |
312.063 |
|
|
TOTAL IMPORTS |
40.805 |
20.690 |
438.229 |
|
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|
|
|
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|
Earnings/ Loss
Per Share (Rs.) |
0.09 |
(0.39) |
(0.58) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
0.67
|
3.01 |
3.74 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.72
|
(3.04) |
(3.76) |
|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.12
|
(1.47) |
(2.29) |
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.04 |
0.06 |
|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
2.40
|
2.19 |
2.31 |
|
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|
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|
Current Ratio (Current Asset/Current Liability) |
|
64.10
|
3.05 |
4.78 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
HIGHLIGHTS
During the year
2010-11, the production performance of the Shahjahanpur Plant of their Company was
exemplary. The Company surpassed all its previous records in terms of
production and energy efficiency. The Company achieved an all-time record for
the highest ever Urea production of 10.28 Lac MT with capacity utilization of
118.90%, and Ammonia production of 6.07 Lac MT with capacity utilization of
121.03%. This year also saw the lowest ever energy consumption in the history
of the Plant with 5.585 Gcal/MT for Urea and 7.981 Gcal/MT for Ammonia
production. Another milestone achieved by the Company was that the Company has
met the cut-off point fixed by Department of Fertilizer, Government of India,
thus making it eligible for Import Parity Price (IPP) Scheme. The Company had
crossed the “qualifying” production level of 955301 MT and thus the entire production
beyond the “cut-off” level of 909810 MT amounting to 118190 MT qualified for
pricing under the IPP Scheme.
A planned shutdown
of plant was taken from the evening of 26th March, 2011 to carry-out the
remaining jobs of Phase–I of Revamp Project and also for planned maintenance
activities. Some of the major jobs undertaken were replacement of the damaged
RG Boiler, extensive repairs to the CO2 compressors, replacement of major
electronic controls, replacement of packings of 2 beds of CO2 absorber, changing
line size of process gas line, replacing 2 rows of burners etc. The jobs
undertaken during the shutdown were major and some were done for the first time
in the industry. The original estimated duration of shutdown was 25 days but
because of very meticulous planning and tight monitoring, all the jobs were
well completed before the schedule and one stream of urea plant was started on
12th April, 2011 i.e. after 17 days only. The second stream of urea plant was
started on 15th April, 2011. The Company had also undertaken major revamp of
electronics in the Offsite, Ammonia as well as Urea plants and after start-up
there were some teething problems which were later on stabilized.
During the year,
thier Company achieved unparalleled performance in its dispatch and sales
operations and closed the year with zero inventory of urea. The opening stock
of 98540 MT urea as well as the full production of 10.28 Lac MT urea was
dispatched and sold with zero closing stock of urea. The Company has received
all payments for sale of urea and there were no pending receivables from the
sales channel at the end of year.
During the year
the funds flow position remained tight with the cash inflows from subsidy and
sales, matching more or less with the operating expenses and interest cost. The
interest rates saw an upward trend in the economy. By managing its funds and
borrowings efficiently and by repaying two installments of long term foreign
currency and rupee loan, the total financial cost of the Company was brought
down by Rs.17786.600 Millions. The Company’s financial results for the year
2010-11 show EBIDTA of Rs.213108.800 Millions on a turnover of Rs.1097741.700
Millions and the bottom line of the Company stands at a profit after tax of
Rs.7371.600 Millions.
FUTURE PLANS AND
OUTLOOK
After the
completion of Phase-I of the Revamp Project, there has been marked improvement
in the performance of the plant after completion of the annual turn-around. For
Phase-II of the Revamp Project, the Company has already awarded the study to
M/s Haldor Topsoe. The implementation period for Phase-II is about 24 months
and after implementation, the plant capacity will go up from the existing 1520
MTPD to 2000 MTPD for ammonia and from the existing 2620 MTPD to 3500 MTPD for
urea.
The Company has
installed facilities for producing Neem Coated Urea upto 350000 MT per annum.
Small batches have already been produced and the product quality is good and
meets all specified requirements.
The first phase of
running the standby Gas Turbine Generator of the captive power plant and
selling the excess power has already been implemented. The 132 KV switchyard
and transformer required for this purpose has already been erected. The
transmission line for Grid Connectivity is in the last stage of completion and
after getting it tested and completing statutory compliances, sale of power
will be started soon. For the second phase of installation of new equipments
for power generation for commercial sale, the plans will be drawn in due
course.
The Company is also
reviewing various options for optimum use of existing unutilized land at
Shahjahanpur to increase its profitability, subject to necessary regulatory and
other approvals wherever required.
Contingent Liabilities
Contingent Liabilities
not provided for in respect of:
|
Particulars |
31.03.2011 |
31.03.2010 |
|
Bank Guarantees |
2.395 |
1.907 |
|
Letter of credit issued |
601.936 |
613.337 |
|
Surety / Security Bond executed |
|
|
|
·
Excise |
165.986 |
118.180 |
|
·
Customs |
0.000 |
26.044 |
|
Disputed Trade Tax Matters |
98.117 |
206.845 |
|
Stamp Duty on Mortgage |
1900.000 |
1900.000 |
|
Income Tax demand notice |
382.000 |
0.000 |
WEBSITE DETAILS
Subject
manufactures nitrogenous fertilizer viz. urea through our integrated urea and
ammonia manufacturing facility at Shahjahanpur in the state of Uttar Pradesh in
India. Our Fertilizer Plant is the latest Greenfield Urea Plant in India-
commissioned in November 1995. The Fertilizer Plant is strategically located in
North India, right in the middle of a high urea consumption belt and based on
Natural Gas as feedstock supplied through the Hazira-Vijaypur-Jagdishpur
("HVJ") gas pipeline.
The
Fertilizer Plant is located at Village Piprola, on State Highway No. 29 and is
about 12 km from the District Headquarters of Shahjahanpur. It has an installed
capacity of 864,600 MTPA of urea and 501,600 MTPA of ammonia. We have been
operating our Fertilizer Plant at more than 100% capacity utilisation since
acquisition. The plant is ISO 9001:2000 and ISO 14001:1996 certified by KPMG
Quality Registrar (a business unit of KPMG). The marketing of Urea and surplus
ammonia produced by the Company is undertaken by KRIBHCO, one of the promoters
Company. The urea is sold under the brand KRIBHCO under a marketing arrangement
with KRIBHCO.
The
Company was incorporated on December 8, 2005 pursuant to a joint venture
agreement between KRIBHCO and Shyam Group to acquire the urea manufacturing
facilities at Shahjahanpur from Oswal Chemicals and Fertilizers Limited in the
share holding ratio of 60:40. Effective March 30, 2009 the shareholding ratio
of KRIBHCO and Shyam group is 85:15.
The
management control of the Company rests with KRIBHCO, a cooperative society
engaged in manufacturing nitrogenous and bio-fertilizers since 1980. KRIBHCO’s
long and valuable experience in fertilizer sector provides the Company the
advantage of their management expertise and business know-how. The Company leverages
on the extensive marketing and distribution network of KRIBHCO, under which our
products are marketed. The Company also has access to brand KRIBHCO, which is a well
established and respected brand amongst farmers and co-operative societies
across India.
BOARD
OF DIRECTORS
Dr. C.
P. Singh Yadav, is the Director and Chairman of thier Company since
inception i.e. December 2005. He is also the Vice-Chairman of KRIBHCO. He
holds Bachelor’s degree in Education and Law, Master’s degree in Science and
Doctorate in Philosophy from Bundelkhand University. He has more than 32 years
of experience as Agriculturalist and Co-operator. Earlier he was the Chairman
of UP Cooperative Marketing Federation and Bundelkhand Vikas Nigam.
Mr. V.
P. Kaushik, is the Managing Director of thier Company since May,
2007. He holds a Bachelor’s degree in Mechanical Engineering from the Institute
of Technology, Benaras Hindu University and Master’s degree in Business
Administration from the Faculty of Management Studies, University of Delhi. He
has over 45 years’ experience in corporate management and fertilizer industry.
Prior to joining us he has held CEO position for 13 years including Managing
Director, Duncans Industries Limited and Director General, Fertilizers Association
of India.
Mr. V.
R. Patel, is a non-executive and non-independent Director of thier
Company since July, 2010. He is Chairman of KRIBHCO. He also holds position of
Managing Director of Rajkot District Cooperative Bank, Chairman of Lakhdhirgadh
Jal Sinchan Seva Sahakari Mandali Ltd, Director of Gujarat State Cooperative
Marketing Federation and Vice Chairman of NAFED. Shri V. R. Patel has been
recipient of several awards and honours for his outstanding contribution to
Cooperative Sector.
Mr.
B.D. Sinha, is a non-executive and non-Independent Director of thier
Company since December, 2005. He is also the Managing Director of KRIBHCO. He
holds a Bachelor’s and a Master’s degree in Arts from University of Patna. He
has over 32 years of experience in Finance and Taxation. Earlier he
worked in various capacities in the Income Tax Department and Ministry of
Finance.
Mr.
Alok Tandon, is a non-executive and non-Independent Director of their
Company since December, 2005. He holds a Bachelor’s degree in Commerce from
University of Delhi and is a member of the Institute of Chartered Accountant of
India. He is an entrepreneur having 19 years experience in finance. He
specializes in the telecom industry. He is a Managing Director of Shyam Telecom
Limited.
KEY MANAGERIAL PERSONNELS
Mr. O.P.Gupta, Vice President (Works) is the Head of Works at
Shahjahanpur since September, 2007. He holds a Bachelor’s degree in Chemical
Engineering from the Indian Institute of Technology, Kanpur and Diploma
in Management from AIMA, New Delhi. He has over 35 years of experience in the
fertilizer sector. Earlier he was associated with National Fertilizer Limited.
He is responsible for plant operations (unit head) of their fertilizer
plant.
Mr. Manu Malik, I.R.S., has been deputed by KRIBHCO as the Chief
Financial Officer of their Company since May, 2007. He holds a Master’s degree
in Political Science from University of Punjab. He has over 16 years of
experience in the Revenue Department, Government of India. Earlier he was
handling financial investigations and audits as Additional Commissioner of
Income Tax. He is responsible for financial, accounting and taxation
matters.
Mr. Bipin C. Phuloria, is the Company Secretary of their Company since
February, 2007. He is a member of the Institute of Company Secretary of India
and holds a bachelor degree in Law from the University of Allahabad (UTTAR
PRADESH) and a master degree in Commerce from the Kakatiya University (ANDHRA
PRADESH). He has over 17 years of experience in dealing with Legal and
Secretarial matters. Earlier he was associated with Bright point India Private
Limited as Legal Manager. He is responsible for secretarial and legal matters.
Mr. A. K. Dixit, is the Sr. General Manager at Shahjahanpur since
November, 2007. He holds a Bachelor’s degree in Mechanical Engineering from the
Aligarh Muslim University, Aligarh. He has over 34 years of experience in the
fertilizer sector. Earlier he was associated with Brahamputra Valley
Fertilizers Corporation Limited (BVFCL). He is currently responsible for
engineering functions of the fertilizer plant.
Mr.
C.Vishwanathan, is General Manager (Finance) of Kribhco Shyam Fertilizer
Limited (KSFL) since 3rd March 2010. He holds a Bachelor’s degree in Arts from
University of Madras and is a chartered account. Further, he had acquired
Diploma in Information System Audit from ICAI, New Delhi. He worked in KRIBHCO
for 26 years and retired as Chief General Manager (F and A).
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.50.90 |
|
|
1 |
Rs.80.30 |
|
Euro |
1 |
Rs.68.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
27 |
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.