MIRA INFORM REPORT

Report Date :

04.10.2011

IDENTIFICATION DETAILS

Name :	RASHTRIYA CHEMICALS AND FERTILIZERS LIMITED
Registered Office :	Priyadashani, Eastern Express Highway, Sion, Mumbai – 400 022, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.03.1978
Com. Reg. No.:	11-020185
Capital Investment / Paid-up Capital :	Rs.5516.900 millions
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.
No. of Employees :	4334 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

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 80400000
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 businessmen. 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.

INFORMATION DECLINED BY

Name :	Mr. Nand Kumar
Contact No.:	91-22-25522040
Date :	30.09.2011

LOCATIONS

Registered Office/ Corporate Office :	Priyadashani, Eastern Express Highway, Sion, Mumbai – 400 022, Maharashtra, India
Tel. No.:	91-22-25522000 / 24070968 / 0223 / 8590 / 24070024 / 24045024 / 25522260 / 24045001 / 2 / 3 / 4
Fax No.:	91-22-24070386 / 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 – 400 074, Maharashtra, India
Tel. No.:	91-22-25522000/25522040 (Board No.)
Marketing Office :	Located at : · Kadapa · Khammam · Nizamabad · Vijaywada · Visakhapatnam · Bihar and Jharkhand · Patna · Chhatisgarh · Raipur · Delhi Punjab Haryana HP and Chandigarh · Gujarat · Karnataka · Hassan · Hubli · Raichur · Madhya Pradesh · Maharashtra · Aurangabad · Jalgaon · Kolhapur · Konkan · Nagpur · Nasik · Pune
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.:	91-11-26851419 (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.: 91-22-25583981 (Office) / 25551242 (Res.) Swagat Guest House, Kihim, District Raigad, Alibaug, Maharashtra, India Contact Person: Maj. Ranade, CAM Tel. No.: 91-2141-238028 (Office) / 238019 (Res.)

DIRECTORS

As on : 31.03.2011

Name :	Mr. U.S. Jha
Designation :	Chairman and Managing Director [up to 30.06.2010]
Name :	Mr. J. Kohareswaran
Designation :	Chairman and Managing Director and Director (Marketing) [up to 31.10.2010]
Name :	Mr. Gautam Sen
Designation :	Director (Finance)
Name :	Mr. Deepak Singhal, IAS
Designation :	Joint Secretary Department of Fertilizers, New Delhi [up to 12.11.2010]
Name :	Mr. Shamlal Goyal, IAS
Designation :	Joint Secretary Department of Fertilizers, New Delhi [from 12.11.2010]
Name :	Shri Manoj Priya
Designation :	Director [Technical]
Name :	Dr. V. Rajagopalan, IAS
Designation :	Additional Secretary and Financial Advisor, Department of Fertilizers, New Delhi
Name :	Mr. R. G. Rajan
Designation :	Chairman and Managing Director

KEY EXECUTIVES

Name :	Mr. Rajesh Kundan, I.R.S.
Designation :	Chief Vigilance Officer
Name :	Mr. M.Thyagarajan
Designation :	General Manager (Coordn)
Name :	Mr. P.K. Lahiri
Designation :	Executive Director (IA)
Name :	Mr. Bhunesh Mathur
Designation :	Executive Director (HES)
Name :	Mr. P M C Nair
Designation :	Executive Director (Trombay)
Name :	Mr. R.H. Kulkarni
Designation :	Executive Director (Fin)
Name :	Mr. Mukund M. Patil
Designation :	Executive Director (HR/ Marketing)
Name :	Mr. K.C. Prakash
Designation :	Company Secretary
Name :	Mr. P.B. Asai
Designation :	Executive Director (Marketing)
Name :	Mr. Sudhir Parkhi
Designation :	Chief General Manager (Admn)
Name :	Mr. R.K. Jain,
Designation :	Chief General Manager (Thal)
Name :	Mr. A.B. Ghasghase
Designation :	General Manager (IPD)
Name :	Mr. C. M.T. Britto
Designation :	General Manager (Coordn)
Name :	Mr. V.G. Londhe
Designation :	General Manager (CF/ IT)
Name :	Mr. R.B. Patil
Designation :	General Manager (Finance)
Name :	Mr. Dilip Ranade
Designation :	General Manager (Vig)
Name :	Mr. Bhaskar Das
Designation :	General Manager (Projects), Thal
Name :	Mr. P.G. Deshpande
Designation :	General Manager (Operations)
Name :	Mr. A. Kundu
Designation :	General Manager (Commercial)
Name :	Mr. A. Banerjee
Designation :	General Manager (Complex)
Name :	Mr. P. Karthikeyan
Designation :	General Manager (Marketing)
Name :	Mr. R.K. Nagraj
Designation :	General Manager (HWP/CGP)
Name :	Mr. A. M. Swamy
Designation :	General Manager (N)
Name :	Mr. R.K. Bharve
Designation :	General Manager (IA)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Category 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	927,145	0.17
Financial Institutions / Banks	1,223,473	0.22
Insurance Companies	7,034,664	1.28
Foreign Institutional Investors	382,637	0.07
Sub Total	9,567,919	1.73
(2) Non-Institutions
Bodies Corporate	7,697,165	1.40
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	19,255,954	3.49
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	2,841,592	0.52
Any Others (Specify)	2,010,570	0.36
Clearing Members	972,431	0.18
Non Resident Indians	1,017,939	0.18
Overseas Corporate Bodies	900	-
Trusts	19,300	-
Sub Total	31,805,281	5.77
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	100.00

Promoter and Promoter Group

Name of the Shareholder	Number	As a % of grand total (A) + (B) + (C)
President of India	510,313,900	92.5
M Peter Johnson	200	0
Deepak Singhal	100	0
S R Ghosh	100	0
S S Verma	100	0
K K Padamanabhan	100	0
U S Jha	100	0
Ashok Kumar	100	0
Pravin Tripathi	100	0
S T Venkatachalapathy	100	0
Total	510,314,900	92.5

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 31.03.2011)

Metric Tonnes

Products	Licensed Capacity	Installed * Capacity (As certified by the Management)	“Annual Production Without Adjustment for Shortages / Excesses”
Ammonia	116000	115500	97800
Ammonia (Trombay-V)	297000	297000	320330
Ammonia (Thal)	NA	990000	1134510
Urea (Trombay-V)	427500	330000	341090
Urea (Thal)	NA	1706800	1783450
Suphala15:15:15 (Complex Fertilizers)	300000	420000	447000
Suphala 20:20:20 (Ammonium Nitrate Phosphate)	361000	270000	157935
Methanol	37500	72600	68700
Ammonium Bicarbonate	NA	23000	25509
Argon (million NM3)	NA	3	2.0
Aragon (million NM3) Thal	N.A	8	4.4
Nitric Acid (100%) [HPNA]	101600	105600	108235
Nitric Acid (100%) (MPNA)	255000	247500	254120
Sulphuric Acid (98%)	99000	99000	77842
Phosphoric Acid	32000	30000	27170
Dilute Sulphuric Acid	NA	0	90749
Sodium Nitrate/Nitrite	4000	5400	5045
Concentrated Nitric Acid	NA	33000	25610
Methylamines - (Trombay)	4000	5940	5244
Methylamines - (Thal)	NA	11400	11579
Ammonium Nitrate (100%)	54000	90000	91591
Dimethyl formamide	NA	2500	2958
N-15 (Grams)	NA	800	0
T. G. Urea (Thal)	NA	0	0
Di Methyl Acetamide	NA	5000	1715
Carbon Monoxide Plant (million NM3)	NA	9.5	3.5
Biola (Bio Fertilizer)	150	300	282
Microla (Ltrs)	100000	300000	157801
Formic Acid	NA	10000	4268
Sujala 19:19:19	NA	4000	3963
Rapid Wall [lakh sq.mtr.]	NA	14.52	0

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

GENERAL INFORMATION

No. of Employees :

4334 (Approximately)

Bankers :

• State Bank of India, Swastik Chamber, Chembur, Mumbai-400071, Maharashtra, India.
• State Bank of Bikaner and Jaipur
• Syndicate Bank
• New India Cooperative Bank Limited
• Kotak Mahindra Bank
• ICICI Bank Limited

Facilities :

SECURED LOANS

(Rs. in millions)

Particulars	31.03.2011	31.03.2010
Term Loan from Banks
1. Rupee Loan from Banks
a. 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.159.600 millions P.Y. Rs. 167.300 Millions)	763.700	931.000
b. 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.175.000 Millions P.Y. Rs.175.000 Millions)	525.000	700.000
c. 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. 53.300 Millions)	186.700	240.000
d. Loan from Kotak Mahindra Bank. A loan of Rs.750.000 Millions sanctioned by Kotak Mahindra Bank is secured by first pari passu charge by way of hypothecation on all movable 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. 187.500 millions P.Y. Rs. Nil)	750.000	650.000
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. nil P.Y. Rs. 12.400 millions)	0.000	12.400
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.14.700 millions P.Y. Rs. 10.600 Millions)	41.300	47.600
B. Working Capital Loans Cash Credit Account Working Capital Demand Loan (Cash Credit Account and Working Capital Demand Loan is secured by hypothecation of entire stocks of raw materials and finished goods, consumable stores’ and spares, stock in transit, book debts)	243.000 1007.400	0.000 0.000
Total	3517.100	2581.000

UNSECURED LOANS

(Rs. in millions)

Particulars	31.03.2011	31.03.2010
Short Term Loans from Banks	1299.100	10727.400
Total	1299.100	10727.400

Banking Relations :	--
Statutory Auditors :
Name :	JCR and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Name :	G.D. Apte and Company Chartered Accountant
Address :	Mumbai, Maharashtra, India
Subsidiaries :	v Rajasthan Rashtriya Chemicals and Fertilizers Limited
Joint Ventures ;	v Fact-RCF Building Products Limited v Urvarak Videsh Limited v RCF-HM Construction Solutions Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
800,000,000	Equity Shares	Rs.10/- each	Rs.8000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
551,688,100	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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		5516.900	5516.900	5516.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		14600.400	12854.500	11213.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		20117.300	18371.400	16730.400
LOAN FUNDS
1] Secured Loans		3517.100	2581.000	1360.100
2] Unsecured Loans		1299.100	10727.400	12882.200
TOTAL BORROWING		4816.200	13308.400	14242.300
DEFERRED TAX LIABILITIES		1555.100	1637.400	1487.100
TOTAL		26488.600	33317.200	32459.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12824.300	12427.100	10771.600
Capital work-in-progress including Capital Advances		908.400	1400.500	2365.800
INVESTMENT		153.200	153.000	352.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5347.500	4095.900	6926.900
	Sundry Debtors	8911.700	8589.800	17881.700
	Cash & Bank Balances	4192.500	7846.500	4118.000
	Other Current Assets	3349.300	6259.400	6477.500
	Loans & Advances	1702.500	2022.000	2779.600
Total Current Assets		23503.500	28813.600	38183.700
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5338.500	3991.700	12191.000
	Other Current Liabilities	3130.700	3241.900	4285.100
	Provisions	2431.600	2243.400	2743.900
Total Current Liabilities		10900.800	9477.000	19220.000
Net Current Assets		12602.700	19336.600	18963.700
MISCELLANEOUS EXPENSES		0.000	0.000	6.200
TOTAL		26488.600	33317.200	32459.800

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	28718.100	27101.000	30556.400
		Subsidy on Fertilizer	26353.000	29320.100	53103.400
		Other Income	1596.000	1797.500	1189.000
		TOTAL (A)	56667.100	58218.600	84848.800
Less	EXPENSES
		Purchase of Bought out Products	13072.700	18460.900	27404.100
		Material Consumed	17320.200	17124.400	19738.600
		Salaries, Wages, Bonus, etc.	3773.500	3586.500	3822.100
		Power & Fuel	8718.500	5521.200	13690.300
		Freight and Handling charges	5248.800	5291.300	5734.000
		Excise Duty	22.100	1.800	(4.100)
		Repairs and Maintenance	942.700	733.600	698.800
		Other Expenditure	1854.000	1057.800	4804.800
		Increase/(Decrease) in Finished Goods	195.000	924.300	3847.500
		Research and Development	22.500	23.300	16.700
		Loss on Impairment of Assets		(299.600)	(0.500)
		Provision For Doubtful Debts/Claims/Advances	138.500	52.100	9.800
		Provision For Bad Debts / Claims / Loans / Irrecoverable Amount Written off	0.000	0.100	80.100
		Provision for obsolescence of stores and spares	3.900	13.600	16.500
		Bad Debts Written off	149.900	617.500	5.400
		Transfer Credits	(127.100)	(93.600)	(245.900)
		TOTAL (B)	51335.200	53015.200	79618.200
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5331.900	5203.400	5230.600
Less	INTEREST		661.000	705.500	1107.200
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4670.900	4497.900	4123.400
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1126.200	1055.600	866.300
Add	Prior period adjustments		2.200	(0.200)	(0.100)
	PROFIT BEFORE TAX (E-F) (G)		3546.900	3442.100	3257.000
Less	TAX (H)		1095.700	1093.400	1141.200
	PROFIT AFTER TAX (G-H) (I)		2451.200	2348.700	2115.800
Less	APPROPRIATIONS
		Transfer to General Reserve	1745.900	1641.000	1341.300
		Dividend	606.900	606.900	662.000
		Tax on Dividend	98.400	100.800	112.500
	BALANCE CARRIED TO THE B/S		0.000	0.000	0.000
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods calculated on FOB basis	7.400	25.800	22.300
		Technical manpower fees	0.000	0.200	0.000
	TOTAL EARNINGS		7.400	26.000	22.300
	IMPORTS
		Raw Materials	3374.600	1998.600	7470.900
		Stores & Spares	320.900	150.700	115.600
		Capital Goods	142.900	46.400	207.200
	TOTAL IMPORTS		3838.400	2195.700	7793.700
	Earnings Per Share (Rs.)		4.44	4.26	3.84

QUARTERLY RESULTS

PARTICULARS	30.06.2011 1^st Quarter
Net Sales	8683.600
Total Expenditure	8448.000
PBIDT (Excl OI)	235.600
Other Income	114.600
Operating Profit	350.200
Interest	0.000
Exceptional Items	(9.100)
PBDT	341.100
Depreciation	282.400
Profit Before Tax	58.700
Tax	19.100
Provisions and contingencies	0.000
Profit After Tax	39.600
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	39.600

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.32	4.03	2.49
Net Profit Margin (PBT/Sales)	(%)	12.35	12.70	10.66
Return on Total Assets (PBT/Total Assets}	(%)	9.76	8.35	6.65
Return on Investment (ROI) (PBT/Networth)		0.18	0.19	0.19
Debt Equity Ratio (Total Liability/Networth)		0.78	1.24	2.00
Current Ratio (Current Asset/Current Liability)		2.16	3.04	1.99

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors on Capital Account Micro, Small and Medium enterprises Others	- 236.700	- 324.000	- 316.500
Sundry Creditors on Other Account Micro, Small and Medium enterprises Others	- 5101.800	- 3667.700	- 11874.500
Total	5338.500	3991.700	12191.000

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 2010-2011:

The Company achieved a turnover of Rs.55741.000 millions compared to Rs.56971.800 millions in the previous year. The turnover is lower by Rs.1230.800 millions during the year compared to previous year mainly due to lower subsidy received from Government of India. The total income from operations was Rs.56772.500 millions as against Rs.58262.500 millions during the previous year. The Company achieved a gross profit of Rs.4767.400 millions as against Rs.4397.000 millions. The net Profit before Tax at Rs.3546.900 millions as against Rs.3442.100 millions registered an increase of 3.04%. The Net Profit after Tax during the current year, is higher at Rs.2451.200 millions as against Rs.2348.700 millions in the previous year registering an increase of 4.36% over previous year. The net Interest cost during the year has been Rs.96.500 millions compared to Rs.198.700 millions during the previous year due to good treasury and foreign currency management. The Company received ‘MOU Excellent’ rating for 2009-2010 and is likely to get the same for 2010-11 from Ministry of Heavy Industries and Public Enterprises.

MANAGEMENT DISCUSSION AND ANALYSIS:

OPERATIONAL RESULTS:

PRODUCTION:

Fertilizers:

The Company produced 27.29 lakh MT of fertilizers (21.24 lakh MT of Urea, 4.47 lakh MT of Suphala15:15:15 and 1.58 lakh MT of Suphala 20:20) during the year as against 25.96 lakh MT (20.89 lakh MT of Urea, 4.90 lakh MT of Suphala 15:15:15 and 0.17 lakh MT of Suphala 20:20) produced in the previous year and achieved overall installed capacity utilisation of 100.08% as against 96.23% during the previous year. The capacity utilization of the Urea plants was to the extent of 104.28%. As regards complex fertilizers, Suphala [15:15:15] plant produced to the extent of 106.43% and Suphala 20:20 (ANP) produced 58.52% as the plant got stabilized in second half of the year. In terms of nutrients, the Company produced 10.76 lakh MT of Nitrogen (N), 0.99 lakh MT of Phosphate (P2O5) and 0.67 lakh MT of Potash (K2O) during the year as compared to 10.38 lakh MT of N, 0.77 lakh MT of P2O5 and 0.74 lakh MT of K2O during the previous year.

The details of performances of the units are given below:

Thal Unit:

Thal unit produced 17.83 lakh MT of Urea during the year compared to 17.82 lakh MT produced in the previous year. The unit achieved a capacity utilisation of 104.49% as compared to 104.41% during the previous year. The unit produced 11.35 lakh MT of Ammonia compared to 11.28 lakh MT during previous year. The energy consumption per MT of Urea was 6.37 Gcal/ MT (6.30 Gcal MT in the previous year). In terms of nutrients in the fertilizers, the unit produced 8.20 lakh MT of N during the year, same as in previous year. Thal unit of the Company was bestowed with following awards during the year:

• Certificate of Merit for Excellence in Energy Conservation and Management from Indian Chemical Council for 2009.
• “Runner up Award” for “Best Technical Innovation” from Fertilizers Association of India for the year 2009-10.
• “Green Tech Environment Excellence Award in Gold Category” for the year 2010.

Trombay Unit:

The Trombay Unit produced 3.41 lakh MT of Urea, 4.47 lakh MT of Suphala 15:15:15 and 1.58 lakh MT of ANP during the year compared to 3.07 lakh MT of Urea, 4.90 lakh MT of Suphala 15:15:15 and 0.17 lakh MT of ANP produced during the previous year. The unit achieved an overall capacity utilization of 92.75% compared to 82.14% during the previous year. In terms of Nutrient values, the unit produced 2.56 lakh MT of N, 0.99 lakh MT of P2O5 and 0.67 lakh MT of K2O during the year compared to 2.18 lakh MT, 0.77 lakh MT and 0.74 lakh MT respectively in the previous year.

The unit was bestowed with the following awards:

• Green Tech Environment Excellence Award for “Environmental Excellence in Fertilizer Sector” for 2009-10
• Second best “National Energy Conservation Award” in Fertilizer Sector for Energy Conservation.

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 1.51 lakh MT of various major Industrial Chemical products compared to 1.19 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 40.14 lakh MT during 2010-11 as compared to 40.73 lakh MT in the previous year. The Company sold 29.86 lakh MT of Urea, 4.50 lakh MT of Suphala 15:15:15, 1.52 lakh MT of Suphala 20:20 and 4.26 lakh MT of other bought out products such as DAP, MOP, etc. compared to 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 respectively during the previous year. The total sale of manufactured fertilizers during 2010-11 was 27.56 lakh MT as against 25.99 lakh MT in 2009- 10 registering a nominal increase of 6.07%. The total sales value, excluding subsidy, of manufactured fertilizers during the period 2010-11 was `15033.300 millions compared to `12677.100 millions in the previous year.

Though, the sale of own manufactured fertilizers was higher by 1.58 lakh MT, since the total sale of bought out fertilizers during 2010-11 was 12.58 lakh MT as against 14.74 lakh MT in 2009-10, the total sale during the year was marginally lower by 0.59 lakh MT.

Industrial Products Division:

Despite various constraints due to global recession during the second half of the financial year, Industrial Products Division achieved turnover of ` 7262.500 millions as against the sales turnover of ` 7172.800 millions during the previous year. Ammonium Nitrate (Melt), Methanol, Methylamines and Conc. Nitric Acid, etc contributed significantly to the turnover.

Exports :

During the year, the Company exported 384 MT of Suphala 15:15:15 worth ` 07.400 millions as against 1220 MT of ` 25.800 millions during the previous year. Considering the products manufactured by 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 from 40.14 lakh MT in 2010-11 to about 45 lakh MT in 2011-12. The Company is tying up with SSP Units for manufacturing and marketing 6 lakh MT of SSP to increase turnover and profitability. The Company also intends to import and market complex fertilizers, water soluble fertilizers, SOP, Aluminium Sulphate, Zinc Sulphate and develop customised/fortified fertilizers like Boronated Suphala and Zincated urea.

The Fertilizer Industry:

The Nutrient Based Subsidy (NBS) scheme for decontrolled phosphatic and potassic fertilizers has come into effect from 1.4.2010 as was informed in the previous report. The scheme has been revised w.e.f 1.4.2011. The main features of the NBS scheme are as under:

i. Revised NBS would be applicable for DAP, DAP-lite, MOP, MAP, TSP, AS, 15 grades of complex fertilizers and

SSP.

ii. Inclusion of ‘S’ as a nutrient.

iii. Fixed subsidy per kg for each nutrient for the year.

iv. Any variant of fertilizer specified above, with secondary and micro nutrients would also be covered under NBS.

Secondary and micro nutrients would be eligible for separate subsidy.

v. Fortified fertilizers with Boron will be eligible for ` 300/MT additional subsidy and fertilizers with fortified zinc would be eligible for ` 500/MT.

vi. MRP can be fixed by the Company.

vii. 20% of the price decontrolled fertilizers produced/ imported will be under movement control under ECA. DOF will regulate the movements to bridge gaps in supply to underserved areas.

viii. All subsidised fertilizers, except Urea, are brought under Open General Licence.

ix. Freight reimbursement for fertilizers under NBS is limited to rail freight at actuals and road freight at normated levels for direct despatches from plant/ports to districts upto a maximum lead of 700 km. In case of SSP, a lumpsum reimbursement of ` 200/MT will be paid.

The Company welcomes the policy and the modifications made as it affords a challenge to improve the market share and enables the Company to market the products in a dynamic scenario.

Projects implemented:

Revamp of Methanol Plant:

The existing Methanol plant was revamped for increasing the capacity from 180 MTPD to 242 MTPD and to bring down the energy consumption from 9.094 to 7.9632 Gcal /MT of Methanol at a cost of ` 1370.000 millions. The plant is running on sustained basis and has been achieving desired results.

Ammonium Nitro Phosphate (ANP) Granulation Project:

The Company has taken up ANP Granulation Project of 900 MTPD capacity at a cost of ` 804.900 millions by using the slurry prepared in the wet section (front end) of ANP. Subsequent to trial production, and after overcoming initial problems, plant was stabilized and is running on consistent load. It is envisaged to revamp wet section of the plant to improve nutrient and and energy efficiency.

Clean Development Mechanism (CDM):

The Company has successfully implemented Nitrous Oxide abatement project, which is a green house gas, in its HP and MP Nitric Acid Plants leading to generation of Carbons Credits. This project has been registered with UNFCCC and the Company has received the first tranche of 1,55,115 CERs (Certified Emission Reduction) for MP Nitric Acid plant in January 2011 after due verification of the project.

Rapidwall Project at Trombay:

Rapidwall Project has been set up at a cost of ` 81.10 crore, to utilize Phospho Gypsum produced as by-product in Trombay, with Australian technology from M/s. Rapidwall Building Systems Pty. Limited. Australia (RBS). Rapidwall is a revolutionary and environmental friendly, load-bearing, prefabricated glass fiber reinforced walling system with broad construction applications. More than 500 wall panels have been manufactured at Trombay. As required, sample panels have been successfully tested at IIT Madras and the product has also received ‘in principle’ approval from Building Material Technology Promotion Council (BMTPC) under the Ministry of Housing and Urban Poverty Alleviation. Apart from Wall panels, the plant also manufactures Plaster which is being marketed vigorously. The Company is taking various steps for marketing of all products by entering into Memorandum of Intent with large project developers and also gaining foothold in retail market. This has given the company, confidence regarding sustained demand in near future.

On going Projects:

De-bottlenecking of Thal Plants:

Thal Ammonia Revamp Project is being implemented to enhance capacity of existing Thal Ammonia Plants from 2 x 1500 MTPD to 2 x 1750 MTPD and reduce specific energy consumption to 8.15 Gcal/MT of ammonia. Simultaneously Thal urea plant is also being revamped, wherein the capacity of one of the urea streams will be increased to 2300 MTPD so as to convert the entire ammonia into urea and achieve urea production of 6015 MTPD. The total project cost is ` 4887.500 millions. The revamped ammonia plant will be commissioned by December 2011 and the Urea plant by 2012.

Projects on the Anvil:

Additional Ammonia Urea project at Thal

The Company has plans to expand the capacity of urea at Thal by setting up one single stream ammonia plant of

capacity 2200 MTPD and one single stream urea plant of capacity 3500 MTPD at the existing site, at an estimated project cost of ` 44000.000 millions. The selection process for lumpsum turnkey contractors (LSTK) for main plants has been started and the Company has received four bids from international parties/consortium for the project. Draft EIA report has been prepared and further action is being undertaken for obtaining environment clearance. Other pre-project activities, including preparation of detailed feasibility report, are underway. The project when commissioned will be a significant step towards bridging the increasing demand supply gap of urea in the country.

Single Super Phosphate project at Thal

The Company has envisaged to set up Single Super Phosphate (SSP) plant at Thal to manufacture 5 lakh MT/ year SSP. The project cost would be Rs.2780.000 millions Feasibility of the project is being examined and the project is likely to take 24 months to complete from the zero date.

Coal Based Fertilizer Plant at Talcher:

Under the scheme of revival of sick Fertilizer Units, the Company has been nominated by the government to be the lead partner to revive FCI Unit at Talcher, Orissa through Coal Gasification route as the feedstock. The Company, along with Coal India Limited (CIL) and GAIL is contemplating to set up a fertilizer complex, comprising of 2500 MTPD ammonia plant, 3500 MTPD Urea plant, 800 MTPD Nitric Acid and 1000 MTPD ammonium nitrate plant. Coal for this will be made available by CIL through its subsidiary Mahanadi Coal Fields which is located nearby. The front end Coal Gasification will be set up on “Build, Own, Operate” (BOO) basis. The ammonia synthesis, urea, nitric acid and ammonium nitrate plants will be built on lumpsum turnkey basis for which prequalification bids have been invited. Project capital cost involved is approx. Rs.80000.000 millions.

Gas based urea plant in Ghana:

Ghana has recently discovered oil and gas in its offshore Jubilee Fields. Ghana Government intends to go for value addition to this natural resource through setting up of downstream processing facilities including a fertilizer plant. Governments of Ghana and India have signed a Memorandum of Understanding (MoU) for setting up the fertilizer project to produce about 1 million metric tons of Urea fertilizer. The Company has been nominated by Government of India to take a lead role for development of the fertilizer project. The proposed grass-root project would consist of an ammonia plant of 2000 MTPD capacity and a Urea plant of 3500 MTPD capacity. The site for the project has been identified and pre-feasibility report has been submitted for consideration by the respective governments. The project is likely to be commissioned in 2016-17. Discussions are being held to finalise pricing and quantity of gas to be supplied to the project.

Phosphatic Fertilizer Project in Saudi Arabia

The Company is exploring the opportunity of participating in Phosphatic Fertilizers project in Saudi Arabia, being

undertaken by Ma’aden at Al Khabra mines at a project cost of US$3.0 billion. Ma’aden is willing to offer equity shares upto 30% to Indian Companies. If the project fructifies it would help in tying up for Phosphatic supply, apart from the benefit of being a shareholder of the venture.

Coal Based Fertilizer Plant in Indonesia:

As per the Memorandum of Understanding signed between governments of India and Indonesia a study is to be conducted for setting up a coal based fertilizer plant in Indonesia. The Company has been nominated to conduct the study from Indian side and action has been initiated in this direction. Apart from the above, the Company is working on development of several other projects including development of Port based infrastructure.

Subsidiary and other Joint Venture Companies:

FACT-RCF Building Products Ltd., 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 the Company 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 plant has been mechanically completed and will be soon commissioned in 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 ` 50.000 millions and has a paid up capital of `1.500 millions of which the Company’s contribution is ` 0.500 million. If the promoters do not find that the objectives for which the Company was incorporated can not be achieved, action would be taken to wind up the Company.

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 promoters are yet to take decision on investment in the project. As it is unlikely that the promoters would go ahead with the project, the promoters are likely to take steps to wind up the JVC. 2.7.4 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 authorized capital of ` 50.000 millions and paid up capital of ` 1.000 million. Considering the nature of products and technical skills available, the Company is confident of marketing the products by entering into MOUs/long term supply contracts with the builders/developers. The Company is therefore contemplating to wind up the JVC.

CHEMICAL DIVISION

Study to recover Process water from present R.O.reject water in Sewage Treatment Plant (STP).

RandD division of the Company carried out experiment to recover process water from R.O. reject water of STP and has successfully recovered usable process water. The scheme suggested by RandD is in the process of implementation and the Company would recover about 3000 m3/day of Process water from RO reject water.

Fortified fertiliser NPK 15:15:15 with Boron (0.2% )

Boronated Suphala (NPKB 15:15:15:0.2), a new range of NPK Fortified Fertilizer, has been successfully developed on laboratory scale. Field Trials on certain crops are being carried out at Agriculture Universities such as Mahatma Phule Krishi Vidyapeeth, Rahuri and Dr. Punjabrao Deshmukh Krishi Vidyapeeth, Akola. This product will give value addition to the existing NPK fertilizer and it will be beneficial, especially, in the boron deficient regions. Production on commercial scale is being undertaken shortly in the existing Suphala production plant to produce (15:15:15:0.2) Boronated Suphala.

Study undertaken to find cost effective substitute for proprietary anti-precipitating agent “Kemfert” in Sujala 19:19:19.

Anti-precipitating agent is being used in Sujala 19:19:19 (drip grade) to overcome clogging of drippers during drip application. RandD division of the Company has undertaken a study to find suitable cheaper substitute for the anti-precipitating agent. Mono Sodium salt of Hydroxy Ethelene Di-phosphonic Acid (HEDP) which is readily available in market, is found to be suitable, cheaper and is giving having satisfactory performance.

AGRICULTURE DIVISION

Customized fertilizers

The Company is developing certain Customised Fertilizer grades for usage in Satara, Sangli, Pune, Solapur and

Kolhapur Districts of Maharashtra. These formulations are crop and region specific customized formulations, developed in two formats viz.100% water soluble fertilizer for drip and foliar application and Granular product for soil application. The agronomic efficacy studies on these grades are in progress at Mahatma Phule Krishi Vidyapeeth, Rahuri Agriculture University.

Liquid Bio-fertilizer

Liquid Bio-fertilizers (phosphate solubilizers) are formulations, without any carrier, with increased shelf life. The liquid bio-fertilizer has several advantages, over carrier (lignite) based product, such as application through seed, soil, drip irrigation, flood irrigation, sprinklers, spray against only seed and soil application for lignite based biofertilizers.

The product has shelf life of 2 years in lab conditions (1.5 yrs in field condition), in comparison to 6 months of lignite based bio-fertilizer.

Laboratory studies as well as field trials have been successfully completed and this product will soon be commercialised.

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

v Computer Software

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 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.49.42
UK Pound	1	Rs.76.72
Euro	1	Rs.65.84

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		67

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.