1. Summary Information
|
|
|
Country |
India |
|
Company Name |
GUJRAT NARMADA
VALLY FERTILIZERS COMPANY LIMITED |
Principal Name 1 |
Mr. M. M Srivastava |
|
Status |
Good |
Principal Name 2 |
Mr. D. J Pandian |
|
|
|
Registration # |
04-002903 |
|
Street Address |
P. O. Narmadanagar, District Bharuch - 392 015, Gujarat, India |
||
|
Established Date |
10.05.1976 |
SIC Code |
-- |
|
Telephone# |
91-2642-247001 – 15 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-2642-247084 / 247057 / 247122 |
Business Style 2 |
Seller |
|
Homepage |
Product Name 1 |
Urea |
|
|
# of employees |
2970 (Approximately) |
Product Name 2 |
Ammonium Nitro-Phosphate |
|
Paid up capital |
Rs.
1,554,187,830 |
Product Name 3 |
Acetic Acid |
|
Shareholders |
Promoters Holding (41.22%) Public Holdings (58.78%) |
Banking |
Bank of Baroda |
|
Public Limited Corp. |
YES |
Business Period |
35 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
A
(68) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates (as
on 31.03.2010) |
India |
Gujarat State Fertilizers Corporation Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
8,747,054,000 |
Current Liabilities |
4,481,764,000 |
|
Inventories |
4,635,324,000 |
Long-term Liabilities |
11,395,338,000 |
|
Fixed Assets |
12,129,395,000 |
Other Liabilities |
4,003,370,000 |
|
Deferred Assets |
304,356,000 |
Total Liabilities |
19,880,472,000 |
|
Invest& other Assets |
16,933,068,000 |
Retained Earnings |
21,314,537,000 |
|
|
|
Net Worth |
22,868,725,000 |
|
Total Assets |
42,749,197,000 |
Total Liab. & Equity |
42,749,197,000 |
|
Total Assets (Previous Year) |
33,124,245,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
28,458,930,000 |
Net Profit |
2,665,332,000 |
|
Sales(Previous yr) |
26,144,463,000 |
Net Profit(Prev.yr) |
1,238,374,000 |
MIRA
INFORM REPORT
|
Report Date : |
31.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
GUJRAT NARMADA VALLY FERTILIZERS COMPANY LIMITED |
|
|
|
|
Registered
Office : |
P. O. Narmadanagar, District Bharuch - 392 015, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
10.05.1976 |
|
|
|
|
Com. Reg. No.: |
04-002903 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1554.188 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110GJ1976PLC002903 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDG00702C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG8372Q |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing and Selling of fertilizers viz. urea, ammonium nitro-phosphate and calcium ammonium nitrate, chemicals viz. ammonia, methanol, formic acid, acetic acid, nitric acids and ammonium nitrate melt and electronics viz. digital switching systems and printed circuit boards. |
|
|
|
|
No. of Employees
: |
2970 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
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 91470000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company with good track. 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 under 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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 / Factory: |
P. O. Narmadanagar, District Bharuch - 392 015, Gujarat, India |
|
Tel. No.: |
91-2642-247001 – 15 |
|
Fax No.: |
91-2642-247084 / 247057 / 247122 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. M. M Srivastava |
|
Designation : |
Director |
|
Qualification : |
M.Sc, MBA |
|
Date of Appointment : |
22.04.2009 |
|
|
|
|
Name : |
Mr. D. J Pandian |
|
Designation : |
Director |
|
Qualification : |
IAS |
|
|
|
|
Name : |
Mr. R. K Tripathy |
|
Designation : |
Director |
|
Qualification : |
IAS |
|
Date of Appointment: |
20.10.2010 |
|
|
|
|
Name : |
Mr. G. C Murmu |
|
Designation : |
Director |
|
Qualification : |
IAS |
|
|
|
|
Name : |
Mr. D. C Anjaria |
|
Designation : |
Director |
|
Qualification : |
B.Com and MBA (Finance) from IIM, Ahmedabad |
|
Experience : |
20 Years |
|
Date of Appointment : |
04.01.2006 |
|
Other Directorship: |
·
Standard Chartered – STCI Capital Markets Limited ·
Ratnamani Metals and Tubes Limited ·
Gujarat State Fertilizers and Chemicals Limited ·
Gujarat International Finance Tech. City Company
Limited ·
GIFT Investment Management Company Limited ·
International Financial Solutions (Private)
Limited ·
Indian Institute of Financial Services (Private)
Limited |
|
|
|
|
Name : |
T. Natarajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Ashok Shah |
|
Designation : |
Director |
|
Qualification: |
M.Sc, Ph.D |
|
Experience : |
20 Years |
|
|
|
|
Name : |
Mr. Atanu Chakraborty |
|
Designation : |
Director |
|
Qualification: |
BE ( Electronic and Communication) , Post Graduate Diploma in Business
Finance and MBA From U.K |
|
Date of Appointment : |
28.07.2011 |
|
|
|
|
Name : |
Mr. AM Tiwari |
|
Designation : |
Managing Director |
|
Qualification: |
B.Sc. (Botany, Zoology, Chemistry) and M.Sc. (Zoology)
from Banaras Hindu University, Varanasi and MBA in Business Administration
from University of Ljubljana, Slovenia |
|
Date of Appointment : |
14.07.2011 |
|
|
|
|
Name : |
Mr. K. C Jatania |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J. S Kochar |
|
Designation : |
Director |
|
|
|
|
|
|
|
Name : |
Dr. T.T Ram Mohan |
|
Designation : |
Director |
|
Qualification : |
PHD Economics, Stern School of Business, New York
University |
|
Date of Appointment : |
31.08.2005 |
|
|
|
KEY EXECUTIVES
|
Name : |
Mr. R. B Panchal |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Sudha Anchlia |
|
Designation : |
Chair Woman |
|
|
|
|
Name : |
J.P Gharia |
|
Designation : |
Additional General Manager |
|
|
|
|
Name : |
V.S. Sirohi |
|
Designation : |
Additional General Manager |
|
|
|
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 |
|
|
|
|
|
|
|
|
64,003,213 |
41.22 |
|
|
64,003,213 |
41.22 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
64,003,213 |
41.22 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
12,202,412 |
7.86 |
|
|
25,500,854 |
16.42 |
|
|
9,792,383 |
6.31 |
|
|
47,495,649 |
30.59 |
|
|
|
|
|
|
3,508,519 |
2.26 |
|
|
|
|
|
|
34,081,875 |
21.95 |
|
|
5,821,288 |
3.75 |
|
|
|
|
|
|
284,797 |
0.18 |
|
|
58,702 |
0.04 |
|
Director and their
Relatives and Friends |
3,500 |
-- |
|
|
43,758,681 |
28.18 |
|
Total Public shareholding (B) |
91,254,330 |
58.78 |
|
Total (A)+(B) |
155,257,543 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
161,240 |
-- |
|
Total (A)+(B)+(C) |
155,418,783 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal share
capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of fertilizers viz. urea, ammonium nitro-phosphate and calcium ammonium nitrate, chemicals viz. ammonia, methanol, formic acid, acetic acid, nitric acids and ammonium nitrate melt and electronics viz. digital switching systems and printed circuit boards. |
||||||||
|
|
|
||||||||
|
Brand Names / Trade Names : |
|
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
PRODUCTION STATUS (As on
31.03.2011):-
|
Particulars |
Unit |
Actual
Production |
|
Ammonia |
MT |
4,74,868 |
|
Urea |
MT |
6,43,228 |
|
Methanol - l |
MT |
39,172 |
|
Methanol - ll |
MT |
1,63,372 |
|
MSU |
MT |
5,266 |
|
Formic Acid |
MT |
19,382 |
|
Acetic Acid |
MT |
1,53,295 |
|
WNA |
MT |
2,84,307 |
|
CAN – l |
MT |
35,870 |
|
Can – ll |
MT |
37,870 |
|
ANP |
MT |
1,66,235 |
|
CAN |
MT |
98,740 |
|
Aniline |
MT |
39,896 |
|
TDI |
MT |
17,710 |
GENERAL INFORMATION
|
No. of Employees : |
2970 (Approximately) |
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Bankers : |
Bank of Baroda |
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
|
|
|
|
|
Statutory Auditors : |
|
|
Name : |
RS Patel and Company Chartered Accountant |
|
Address : |
Ahmedabad |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Diwanji and Associates Chartered Accountant |
|
Address : |
Vadodara |
|
|
|
|
Associates : (as on 31.03.2010 ) |
· Gujarat State Fertilizers Corporation Limited · Gujarat State Fertilizers and Chemicals Limited · Gujarat State Investments Limited · Gujarat Agri Processing Company Limited · Gujarat Chemical Port Terminal Company Limited · Gujarat Narmada Finance and Investment Company Limited ·
Gujarat Mineral Development Corporation Limited ·
National Agricultural Cooperative Marketing
Federation (NAFED), Delhi ·
Gujarat State Petroleum Corporation Limited ·
Gujarat State Petronet Limited ·
Gujarat State Financial Services Limited ·
Gujarat International Finance Tech. City Company
Limited ·
Gujarat Urja Vikas Nigam Limited ·
Gujarat State Electricity Corporation Limited ·
Gujarat Energy Transmission Corporation Limited ·
GSPC Pipavav Power Company Limited · Gujarat Industries Power Company Limited · Gujarat State Energy Generation Limited · Gujarat Power Corporation Limited · GSPC Gas Company Limited ·
Gujarat State Petroleum Corporation Limited ·
Gujarat Alkalies and Chemicals Limited ·
Torrent Power Limited ·
Gujarat State Petronet Limited ·
Gujarat Agro Industries Corporation Limited ·
Gujarat State Seed Corporation Limited ·
Gujarat State Land Development Corporation
Limited ·
Mahindra Gujarat Tractors Limited ·
Standard Chartered – STCI Capital Markets Limited ·
Ratnamani Metals and Tubes Limited ·
Gujarat International Finance Tech. City Company
Limited ·
GIFT Investment Management Company Limited ·
International Financial Solutions (Private)
Limited ·
Indian Institute of Financial Services (Private)
Limited ·
Bhavnagar Energy Company Limited · Gujarat Green Revolution Company Limited |
|
|
|
|
Subsidiaries: (as on
31.03.2010) |
· Narmada Chematur Petrochemicals Limited · ING Satcom Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Rs.10/- each |
Rs. 2500.000 Millions |
|
|
|
|
|
Issued
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,55,418,783 |
Equity Shares each fully paid up (Previous year: 15,75,07,569 Equity Shares) |
Rs.10/- each |
Rs. 1554.188
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,55,418,783 |
Equity Shares each fully paid up (Out of above, 89,42,569 shares issued pursuant to the scheme of amalgamation for consideration other than cash) |
Rs.10/- each |
Rs. 1554.188
Millions |
|
|
|
|
|
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 |
1554.188 |
1554.188 |
1554.374 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
21314.537 |
19236.300 |
18586.788 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
22868.725 |
20790.488 |
20141.162 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9208.934 |
2900.053 |
1028.495 |
|
|
2] Unsecured Loans |
2186.404 |
2650.500 |
2530.500 |
|
|
TOTAL BORROWING |
11395.338 |
5550.553 |
3558.995 |
|
|
DEFERRED TAX LIABILITIES |
2412.492 |
2552.632 |
2630.575 |
|
|
|
|
|
|
|
|
TOTAL |
36676.555 |
28893.673 |
26330.732 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
12129.395 |
11693.512 |
883.906 |
|
|
Capital work-in-progress |
16066.790 |
10298.034 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
866.278 |
895.146 |
0.000 |
|
|
DEFERREX TAX ASSETS |
304.356 |
247.909 |
285.022 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4635.324
|
4050.338 |
4307.571
|
|
|
Sundry Debtors |
4374.824
|
166.811 |
2887.165
|
|
|
Cash & Bank Balances |
1836.917
|
3233.902 |
554.139
|
|
|
Other Current Assets |
0.000
|
0.000 |
2442.434
|
|
|
Loans & Advances |
2535.313
|
2538.593 |
2172.562
|
|
Total
Current Assets |
13382.378
|
9989.644 |
12363.871 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3487.567
|
2275.284 |
2375.999
|
|
|
Other Current Liabilities |
994.197
|
539.423 |
0.000
|
|
|
Provisions |
1590.878
|
1415.865 |
1317.661 |
|
Total
Current Liabilities |
6072.642
|
4230.572 |
3693.660 |
|
|
Net Current Assets |
7309.736
|
5759.072 |
8670.211 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
36676.555 |
28893.673 |
26330.732 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
28458.930 |
26144.463 |
29200.561 |
|
|
|
Other Income |
1435.643 |
862.826 |
653.406 |
|
|
|
TOTAL (A) |
29894.573 |
27007.289 |
29853.967 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of goods for sale |
454.958 |
626.459 |
3064.117 |
|
|
|
Manufacturing Expenses |
20916.675 |
17758.075 |
18136.000 |
|
|
|
Increase/Decrease in stock of finished goods and stock in process |
(395.729) |
971.975 |
(36.318) |
|
|
|
Marketing, Administration and other expenses |
1335.982 |
2060.690 |
1454.448 |
|
|
|
Personnel Expenses |
2356.263 |
1968.271 |
2213.115 |
|
|
|
Research and Development Expenses |
17.296 |
19.539 |
19.085 |
|
|
|
TOTAL (B) |
24685.445 |
23405.009 |
24850.447 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5209.128 |
3602.28 |
5003.520 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
183.910 |
233.820 |
269.218 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5023.218 |
3368.460 |
4734.302 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1211.123 |
1169.592 |
1197.257 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3814.095 |
2198.868 |
3537.045 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1148.763 |
960.494 |
1261.872 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2665.332 |
1238.374 |
2275.173 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4565.811 |
4916.441 |
5232.223 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1000.000 |
1000.000 |
2000.000 |
|
|
|
Dividend |
505.111 |
505.111 |
505.111 |
|
|
|
Tax on Dividend |
81.942 |
83.893 |
85.844 |
|
|
BALANCE CARRIED
TO THE B/S |
5644.090 |
4565.811 |
4916.111 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods FOB Basis |
85.978 |
35.438 |
101.146 |
|
|
|
Technical consultancy and other fees |
0.000 |
23.754 |
43.852 |
|
|
TOTAL EARNINGS |
85.978 |
59.192 |
144.998 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and fuel |
1623.896 |
1563.181 |
1925.469 |
|
|
|
Spares |
274.657 |
327.687 |
334.404 |
|
|
|
Capital Goods |
1180.663 |
2343.085 |
222.423 |
|
|
|
Finished Goods |
76.405 |
8.646 |
175.892 |
|
|
TOTAL IMPORTS |
3155.621 |
4242.599 |
2658.188 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.15 |
7.97 |
14.64 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
|
|
|
1st
Quarter |
|
Gross Sales |
|
|
6442.100 |
|
Other Operating Income |
|
|
0.000 |
|
Other Income |
|
|
66.200 |
|
Total Income |
|
|
6508.300 |
|
Total Expenditure |
|
|
5517.000 |
|
PBIDT |
|
|
991.300 |
|
Interest |
|
|
76.000 |
|
PBDT |
|
|
915.30 |
|
Depreciation |
|
|
298.80 |
|
Tax |
|
|
200.00 |
|
Fringe Benefit Tax |
|
|
0.000 |
|
Deferred Tax |
|
|
0.000 |
|
Reported Profit After Tax |
|
|
416.50 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.96
|
4.59 |
7.62 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.40
|
8.41 |
12.11 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.95
|
10.14 |
17.17 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.11 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.76
|
0.47 |
0.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.20
|
2.36 |
3.35 |
LOCAL AGENCY FURTHER INFORMATION
YEAR IN RETROSPECT
During the year, the Company achieved a sales turn-over of Rs.28458.900 millions as against Rs.26144.500 millions of the previous Financial Year. The profit before tax and the profit after tax were higher at Rs.3814.100 millions and Rs.2665.300 millions respectively for the Financial Year 2010-11 as against Rs.2198.900 millions and Rs.1238.400 millions for the previous Financial Year.
PERFORMANCE REVIEW
Year 2010-11 has been a year of consolidation of the Indian Economy. Growth rate in 2010-11 has been 8.6%. Growth has been broad based with a rebound in the Agriculture sector at around 5.4%. Manufacturing and service sectors have also registered impressive gains. Food inflation, higher commodity prices and volatility in global commodity markets have, however been a cause of concern. Global commodity prices have been on the upswing. Crude oil prices reached a high of $110 a barrel by the end of financial year from $ 75 a barrel in mid 2010. Similarly, all major raw material prices increased steadily during the financial year 2010-11. It is in this back-drop, the Company has registered impressive performance during 2010-11.
As reported last year, after the failure of Waste Heat Boiler (WHB) E-703 in Ammonia Plant on 9th February, 2010, a partial shutdown of Ammonia Plant had to betaken for the repairs of WHB E-703. Repaired WHB E-703 has been put-back into operation and all the plants of the Company have been recommissioned effective 6th June,2010. All the plants of the Company have been operating well since then.
Despite loss of production of Ammonia for 70 days, the Company achieved commendable production performance during the year. Some of the major plants of the Company were operated at over 100% capacity utilization. Ammonia Plant produced 4,74,868MTs of Ammonia with capacity utilization of 106.59%, Urea Plant produced 6,43,228 MTs of Urea with capacity utilization of 101.14%, Formic Acid Plant produced 19,382 MTs of Formic Acid with capacity utilization of 193.82%, Acetic Acid Plant produced 1,53,295 MTs of Acetic Acid with capacity utilization of 153.29%, Weak Nitric Acid Plant (WNA) produced2,84,307 MTs of WNA with capacity utilization of 114.87%, CNA-I and CNA-II Plants produced in aggregate 73,741 MTs of CNA with average capacity utilization of 111.73%, Ammonium Nitro phosphate Plant produced 1,66,235 MTs of Ammonium Nitro phosphate with capacity utilization of 116.66%, Aniline Plant produced 39,896 MTs of Aniline with capacity utilization of 113.99% and TDI Plant produced 17,710 MTs of TDI with capacity utilization of 126.50%. Methanol-I, Methanol-II and MSU Plants were not operated at their full capacity in view of high cost of production of Methanol coupled with reduction in its sales realization. An Melt being more remunerative, it was sold directly to the extent possible rather than using the same for producing Calcium Ammonium Nitrate.
Impact of economic meltdown during the previous year eased off during the financial year 2010-11. Almost all Industrial Products performed well in terms of volume and realization during the year. The Company ‘sold 7,84,592 MTs of Industrial Products during financial year 2010-11 vis-a-vis 6,67,589 MTs of Industrial Products sold during financial year 2009-10, registering an increase of around 17.5%.
In respect of damage to equipment E-703, the Company had lodged a claim with the Insurance Company for material damage as well as loss of profit (LOP). The Company has received a sum of Rs.1412.000 millions from the Insurance Company in full and final settlement of the claim.
Your company took-up 14 projects for implementation under its strategic Growth Plan. Ofthese, 8 projects were completed and commissioned by 2010-11 at a total cost of Rs.432.05Crores. 2 projects viz. Concentrated Nitric Acid III project and Weak Nitric Acid II project have been completed and commissioned during the current year 2011-12 at a cost of around Rs. 3241.300 millions One project viz. Wet Sulphuric Acid project has been abandoned. Remaining 3 projects viz. Co-generation Power & Steam Unit (CPSU), Ethyl Acetate and Toluene Di-isocynate (TDI) projects are presently under implementation. An Action Plan including re-organizing the Project Team has been chalked out for speedy implementation of these projects.
As per the policy of Government of India, the Company is also implementing Ammonia Plant Feed Stock Conversion Project for which the contract has been awarded to M/s Larsen& Toubro, Mumbai, on LSTK basis. This project is slated to be commissioned by August, 2012.
Status of various projects completed as also the projects under execution are given in Management Discussion & Analysis , forming part of this Annual Report.
CODE SOLUTIONS DIVISION
Code Solutions, the IT Division of the Company is a leading Licensed Certifying Authority for issuance of Digital Signature Certificates in the Country. (n)Code also provides e-procurement solutions, e-governance solutions, designs, builds and manages world class data centers and offers managed IT services. (n)Code issued 189074 Digital Signature Certificates during the financial year 2010-2011, registering a growth of 73%over the previous year. (n)Code also completed 15029 tenders, registering a growth of around 38% over the previous year. During the year, (n) Code emerged as abroad based IT solution provider beyond the confines of Gujarat.
DEMERGER OF V-SAT / ISP GATEWAY BUSINESS
V-SAT / ISP Gateway
business not being a core business of the Company, it has been decided company
through the scheme of arrangement and demerger ,against cash consideration of
Rs.60.000 millions to transfer the said business to ING Satcom Ltd., a wholly
owned subsidiary of M/s Infinium India Ltd., an unlisted company
through the scheme iof arrangement and demerger , against cash
consideration of Rs 60.000 millions
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The Fertilizer industry is passing through a transformation phase. As a part of its ambitious plans, Government of India has started making important changes in the fertilizer pricing, subsidy and distribution policies. Government has already decontrolled the import of phosphatic and potassic (P and K) fertilizers, introduced Nutrient Based Subsidy (NBS) for P&K fertilizers, decontrolled the prices of P and K fertilizers, seta time limit for the Urea units to convert to gas based units and levied Excise duty on fertilizers.
Plans are underway to introduce NBS in Urea as also to pass on the subsidy on fertilizers directly to the retailers and then finally to the farmers. Pricing and import of Urea is likely to be decontrolled.
These policies are aimed at attracting fresh investments into the industry which is almost stagnant since the last decade while the demand for fertilizers has been increasing at a steady pace. These policies will also foster competition, reduce subsidy burden, ensure reasonable pricing of fertilizers and channeling of subsidy to the small farmers only.
The chemical industry is among the fastest growing ones in India. The bulk of chemicals produced in India comprise either upstream products or intermediates, which go into variety of manufacturing applications including fertilizers, pharmaceuticals, textiles and plastics, agrochemicals, paints and dyes.
The Company manufactures and distributes nitrogenous and phosphatic fertilizers like Urea, Ammonium Nitro-phosphate (ANP) and Calcium Ammonium Nitrate (CAN) and chemicals like Ammonia, Weak Nitric Acid, Concentrated Nitric Acid, Methanol, Acetic Acid, Formic Acid, Aniline, Toluene Di-Isocyanate (TDI) and provides various services in the area of Information Technology. The Company continues to trade in imported fertilizers like Urea, Single Super Phosphate (SSP), Water Soluble Fertilizers and Cotton seeds as well as Chemicals like Acetic Acid and Formic Acid etc. In the total turnover of the Company, the share of fertilizer and chemical divisions were 52.51% and 45.79% as against 55.41% and43.23% respectively in the previous year.
The Company's performance, during the first quarter of the year , was adversely affected due to the accident in E-703 of Ammonia plant on 09/02/2010, resulting into complete production loss of Ammonia, Urea, ANP and partial production loss of its downstream plants until its start up on 06/06/2010. However, with the remarkable and continuous production performance of all plants during the remaining part of the year, the Company managed to overcome the crisis with an overall noteworthy performance for the year. Dedicated and committed efforts of the Management for cost reduction in various areas of operations, constant improvements and focus on consolidation resulted instead fast gains to the Company.
BUSINESS SEGMENT
PERFORMANCE:
Fertilizer Business:
The Company's three fertilizers, viz. Urea, Ammonium Nitro phosphate (ANP) and Calcium Ammonium Nitrate (CAN) are sold under the brand name Narmada. Trading of fertilizers is also undertaken whenever there is suitable opportunity.
Company's Fertilizers business was good throughout the year and sales continued in the traditional off-season months also.
6.84lacs MT fertilizers constituting 71% of the total sales were sold in the Primary Marketing Zone comprising of the home State Gujarat and the adjoining States of Maharashtra, Madhya Pradesh and Rajasthan. Gujarat, being Company's home State, 4.75lacs MT fertilizers out of a total sale of 9.58 MT fertilizers (manufactured and traded) were sold in Gujarat.
The Company continued trading activities in Imported Urea, SSP and Cotton seeds and earned reasonable profit.
Government of India introduced Excise Duty on fertilizers from 1st March, 2011. Since the Excise Duty is to be passed on to the farmers, there would be no financial impact on the Company.
Government of India has asked the Urea suppliers in Gujarat and Uttar Pradesh (UP) to charge Additional Cost due to Non-recognized input Taxation (ACTN) from the farmers of Gujarat and UP from April, 2011 in order to compensate the manufacturers of Urea for the State Tax on inputs not reimbursed by the Government of India. This policy change would have a positive financial impact on the Company.
Nutrient Based Subsidy (NBS) policy introduced from 1st April, 2010 for P and K fertilizers continues during 2011-12. Subsidy on Nutrients has been increased in line with the increase in the international prices of Urea, DAP, MOP and Sulphur. Consequently, subsidy on ANP produced by the Company has also increased. The Company was free to decide the selling price of its product in the market. Accordingly, considering the market scenario, price of ANP was increased gradually and progressively, the last price rise being from 1st April, 2011. With deregulation of prices of all fertilizers except Urea, the market has become very competitive. The Company has been able to benefit from deregulation of prices by way of increased prices of ANP and CAN by taking advantage of its brand equity.
Industrial
Chemicals Business:
The effect of global melt down in the previous Financial Year (FY) tapered off daring 2010-11. Almost all the Industrial Products performed excellently in terms of volume and realization.
TDI:
The sale quantity was higher by 33% at 17,477 MT in FY 2010-11 vis-a-vis 13,129 MT in FY 2009-10. New record for highest yearly sales was established.
Acetic Acid
(Glacial):
The sale of Acetic Acid was higher by about 5.95% at 1, 51,420 MT in FY 2010-11vis-a-vis 1, 42,914 MT in FY 2009-10.
Methanol:
The total sales volume of Methanol was 1, 26,059 MT in 2010-11 vis--vis a quantity of1, 11,511 MT in 2009-10, a jump of 13%.
Majority of sales, 92% continued to be in West Zone, where the realization is the highest.
Formic Acid:
The total sales volume of Formic Acid was 18,993 MT in FY 2010-11 vis--vis 16,476 MT in FY 2009-10, a jump of about 15%. This was due to enhanced production. New records for daily sales of 154.035 MT (against 135.215 MT of 2006-07), monthly sales of 2,064.220 MT (against 1,710.205 MT of 2007-08) and yearly sales of 18,793.435 MT (against 17,317.225 MT of 2007-08) were established.
Aniline:
Aniline sale increased by about 17.32% from 33,825 MT during FY 2009-10 to 39,686 MT during FY 2010-11. This was mainly due to improved market conditions after the global meltdown situation.
AN (Melt):
An(Melt) sale reduced by about 13.05% to 42,404 MT during 2010-11 vis-a-vis 48,771 MT during 2009-10. There was also reduced availability for sale of AN Melt in first quarter due to incident of E-703 failure in Ammonia plant.
WNA:
The sale of Weak Nitric Acid on 100% concentration basis was highest ever at 63,278 MT, registering a growth of 7.28% over the previous year.
CNA:
In 2010-11, the sale of Concentrated Nitric Acid was 23,873 MT against 29,316 MT in 2009-10, lower by 18.57%, mainly due to reduced availability as the same was being used for higher value addition products.
Information
Technology Business:
IT Infrastructure (GNFC Infotower):
GNFC Infotower is a technology park with 1, 50,000 sq.ft area, where space is leased out to IT companies with ready infrastructure facilities (Power, Air-conditioning, Furniture, Bandwidth etc.). It provides ambience and interiors at par with international standards. Currently, it provides employment to more than 2000 persons working for various Software, IT, BPO and Call Centers.
Public Key
Infrastructure:
In the year 2010-11, (n) Code issued 1, 89,083 Digital Signature Certificates, as a licensed certifying Authority, witnessing a growth of 72.70% over previous year. (n)Code is a leading player in this field in the Country and has more than 5, 25,000 customers. Some major applications and customers using Digital Certificates are: DGFT, Pune Municipal Corporation, Reliance Industries, BEML, BEL, MJunction, Chittranjan Locomotives, Bank of Baroda, IDBI, NTPC, MP State, HPCL, Director General of Supplies and Disposal (DGS &D), IFFCO, Airport Authority of India, GE Healthcare, Hinduja Hospital, Virtual Treasury-Maharashtra etc.
Services :
e-procurement:
(n)Code s e-procurement services are used by 171 Departments and other organizations of Government of Gujarat and many other customers through its portal www.nprocure.com. In the year 2010-11, 15,029 (40% annual growth) tenders were completed on this portal making it one of the most successful State level e-procurement initiatives in the country. As of now, more than 50,500 tenders have been completed on this portal.
Apart from tenders, (n)Code has also successfully conducted hundreds of e-auctions.(n)Code has been retained by National Informatics Centre Services Inc. (NICSI) for the implementation of e-procurement for 21 States under the Pradhan Mantri Gram Sadak Yojna(PMGSY). It also provides e-Procurement services to Jharkhand, Delhi and Haryana. Other new customers added during the year are Kandla Port Trust, Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (PSTCL).
Data Centers and
Managed Services:
(n)Code designs and builds World class Data Centers. During the year 2010-11, it has completed seven projects. (n)Code is spreading these services all over India and has made Data Centers in Mumbai, Madhya Pradesh and Punjab. (n)Code also provides operations and maintenance services of these Data Centers on 24x7 basis.
(n)Code offers Managed IT services including Internet Security Services to the large enterprises and organizations using complex mix of technologies. It has set up a Network Operating Center (NOC) for managing the networks and infrastructure of large IT users.
Data Center and managed services business of (n) Code Solutions has observed a significant growth during the year.
Consultancy
Services:
(n)Code provides consultancy services for complex technology projects including implementation of ERP, implementation of homeland security and intelligent traffic monitoring system.
E-Governance
Projects:
(n)Code offers e-Governance solutions to several Government Departments. During the year 2010-11, it implemented a Royalty Pass system for the Mining contracts given by the Department of Geology and Mining, Government of Gujarat. Department of Mines &Geology, Karnataka has also signed an agreement with (n) Code Solutions for availing its services for Mineral Administration. Both these projects will result in substantial revenue gains by improving internal control system in these States.
OPERATIONS:
During the year , overall production performance remained good. Problem of failure of E-703 (waste heat boiler) faced during previous year was attended and the exchanger was put back in operation. Ammonia synthesis unit was put back in operation from06-06-2010 and Ammonia production commenced. Despite the loss of production for Ammonia for 70 days, budgeted production was achieved.
Due to unfavorable cost economics for Methanol-I, Methanol-II and Methanol Synthesis Unit (MSU), these plants could not be operated at their full capacity. MSU was operated only for very short duration in view of its higher cost of production. Production of otherproducts viz. Acetic Acid, Formic Acid, Methyl Formate, TDI was adjusted to maximize contribution based on availability of carbon monoxide. Aniline production was planned as per the market condition.
Concentrated efforts are put on day to day operation for energy and material conservation. Emphasis is put for continual improvement in safety and environment.
Awards and
Recognition:
Following awards /
recognition were conferred:
Environment Protection Award for NP / NPK Fertilizers for the year 2009-10received from Fertilizer Association of India, New Delhi.
- Shram Vir Award under Prime Minister s Shram Vir Award Scheme 2007 received from Ministry of Labour & Employment, Government of India, New Delhi.
- Corporate Social Responsibility Award for the year 2009-10 received from Indian Chemical Council, Mumbai.
PROJECTS UNDER CLEAN DEVELOPMENT MECHANISM (CDM):
Following projects have been undertaken as Clean Development Mechanism (CDM) project sunder the Kyoto protocol. Thus, the Company is contributing to the global efforts towards combating global warming.
• N2O Abatement
Project in Weak Nitric Acid (WNA) Plant
The project is registered with United Nations Framework Convention for Climate Change(UNFCCC) on 29th October, 2009. This project has potential to reduce about 3,30,000 MT ofCO2 per annum.
• Wind Mill Power
Project of 21 MW capacity
The Company has set up total 21 MW capacity Wind Turbo Generators in the Kutch region of Gujarat. Wind mills of 9 MW capacity were commissioned in December 2007 and 12 MW capacity were commissioned by November, 2008. These projects have potential to reduce about 38,000 MT of CO2 per annum.
While the 9 MW project is registered with UNFCCC on 1st December, 2010, the 12 MW project is under final stage of validation.
• Co-generation
Power & Steam Unit
33 MW Co-generation Power and Steam Unit project under implementation by the Company also has a possibility of availing carbon credit benefit. It has a potential to reduce CO2emission by about 3,12,000 MT per annum. It is under registration cycle.
OUTLOOK:
Fertilizer
Business:
• Government of India is seriously considering introduction of NBS on Urea. This would mean decontrol of pricing of Urea. This would also have a positive financial impact on the Company.
• Government of India is also contemplating routing subsidy on fertilizers through the retailers and finally directly to the marginal farmers. In such an event, the Company would be able to realise the entire value of sales from the market.
• With an expectation of a good monsoon and improved irrigation facilities, the Company 'should do well on the fertilizers sales front. The year looks to be promising .Sales of three major fertilizers, viz. Urea, DAP and MOP have been good throughout the country and it looks like the country may need to import sizeable quantity up to 65 lacs MT of Urea this year.
Chemical Business:
• The Company is the country s largest manufacturer of Acetic Acid, Methanol Formic Acid and Aniline. The Company is the only manufacturer of TDI in India.
• The Company is the leading manufacturer of various building block chemicals inIndia. The Company's market share of various products in domestic market is still very good:
|
Product |
% of Company's share vis--vis total Domestic market |
|
TDI |
54 |
|
Acetic Acid |
23 |
|
Formic Acid |
64 |
|
Methanol |
12 |
|
Aniline |
45 |
• All the chemicals are sold in the domestic market, wherein the realisation is maximum. Dependency on exports at GNFC is nil and exports are resorted to only, if need arises.
• The Company being the largest domestic supplier, many of its products have developed niche market in prominent consuming areas like Gujarat, Rajasthan, Madhya Pradesh and Maharashtra in case of Fertilisers & Chemicals as well as Northern and Southern India for Industrial Products.
• The Company faces competitions mainly from Imports, as majority of its products are being imported, especially Acetic Acid, TDI, Formic Acid and Methanol.
• In few cases downstream / finished products are imported.
• The market share of the Company is reducing each year as the production is steady and the increased demand is being met through imports.
• Over all, the Chemical market in India is expanding and growing.
Raw materials:
• On the raw material front, all the major petroleum inputs are being procured on import parity price basis. International prices of petroleum products have witnessed upward trend in last 6~7 months. Prices of LSHS, Benzene and Toluene are hovering at the peak levels. It is expected that the prices of these products shall remain range bound during the financial year 2011-12. The prices of indigenous coal were increased during February 2011 and it is likely that these prices may see further upward revision by about10-15% during February-March, 2012. The price of imported coal has increased by about 10%during last six months and is further expected to increase by another 10% by end o f financial year 2011-12 due to increased demand from power sector. The price of ammonia is likely to remain firm in the near future. We have fixed price contract for imported rock phosphate to cover the requirement up to March, 2012.
Future plans:
• Business of the Company is being consolidated by implementation of various projects like Ethyl Acetate, 33 MW Power Plant and TDI-II.
• The Company is also planning expansion in the capacities of some of the other core products.
FINANCIAL
PERFORMANCE:
The financial year 2010-11 has witnessed, year-over-year:
• Net Sales Turnover Rs. 28458.900 millions (Previous period: Rs. 26144.500 millions).
• Total Income Rs.29894.500 millions (Previous period: Rs. 27007.300 millions).
• Earnings before Interest, Depreciation and Tax (EBIDTA) Rs. 5209.100 millions (Previous period: Rs. 3602.300 millions).
• Profit Before Tax (PBT) Rs. 3814.100 millions (Previous period: Rs. 2198.900 millions).
• Profit After Tax (PAT) Rs. 2665.300 millions (Previous period: Rs. 1238.400 millions).
• Book Value per Share Rs. 147.14 (Previous period: Rs. 133.77).
• Earnings per Share (EPS) Rs. 17.15 (Previous period: Rs. 7.97).
• Return on Capital Employed 10.99% (Previous period: 8.49%).
• Return on Equity 11.65% (Previous period: 5.96%).
OPPORTUNITIES and THREATS:
Opportunities:
• Projects worth Rs. 6850.000 millions will be completed during the year 2011-12 and it will improve profitability of the Company.
• Nutrient Based Subsidy (NBS) amount for Complex fertilizers have been increased by the Government and hence it will improve the benefits from ANP product.
• Brand image of Company's fertilizers continues to be in the premium segment. This will help to consolidate markets in the Primary Marketing Zone in the partial decontrol scenario at present and total decontrol in the future.
• With an increase in the irrigation facilities due to Sardar Sarovar, there has been an increase in demand of fertilizers in Gujarat. The Company and its products are well placed to exploit this opportunity.
• It is estimated that apart from indigenous manufactured fertilizers, about 0.200 millions MT of traded fertilizers, mainly Urea, will be handled during 2011-12. This will increase the turnover and profit of the Company.
• Right from inception of the Company's plants, M/s Indian Oil Corporation (IOC) have met entire requirement of feed stock to full satisfaction of the Company. Existing long term agreement was valid up to 31-12-2010. GNFC and M/s IOC have signed Minutes of Meeting (MOM) for entering into new long term agreement for supply of LSHS by IOC to GNFC for the period up to 31st December, 2020.
• The Company has entered into Long term / Annual contracts for supplies of most of the critical raw materials like Oil, Coal, Rock phosphate, Benzene, Toluene, Caustic Soda Lye, Chlorine and packing materials, etc. which are essential for continuous production.
Threats, Risks and
Concerns:
• Natural Gas and LSHS prices have increased substantially and sales realization of Methanol has reduced significantly. Hence, Methanol capacities are operated accordingly.
• Due to high price of main inputs viz. LSHS, rock phosphate, natural gas, coal etc., the viability of the final products based on such inputs is affected adversely.
• Price of crude oil has increased to more than US $ 100 per barrel in the recent past. This will have a wide ranging effect on cost of energy and other inputs.
• Fertilizer business depends very much on Government policies and hence may be affected based on the policy declared from time to time.
• Commissioning of mega plants of Methanol, Acetic Acid, TDI in Middle East, China etc. improve the global supply position leading to softening of international prices.
• Some of the Industrial product plants depend on Ammonia plant for feed streams /utilities. Actions have been initiated for upkeepment of various plants.
Extension Services
and Community Development:
As a part of responsibility of the Company towards the farming community, the Company has established various facilities like the Demonstration Farm, Soil Testing Laboratory, and Tissue Culture Laboratory and undertook Farmers Education Programmes.
Through its 56 Narmada Khedut Sahay Kendra (NKSK) in Gujarat manned by trained and experienced agricultural graduates, the Company carried out various programmes for the benefit of farming community apart from selling fertilizers.
To promote balanced use of fertilizers and supplement the efforts of Government of Gujarat in issuing Soil Health Cards, the Company's Soil Testing Laboratory analyzed14,127 soil samples and 2,015 water samples during the year.
The Company undertook various activities like crop seminars and field demonstrations for efficient use of fertilizers under its Corporate Social Responsibility for the benefit of the farmers of Bharuch District in particular and the State of Gujarat in general.
The Company participated in 30 Agricultural Exhibitions / Krishi Melas during the year.
Under the Plant visit programme 1311 farmers visited Company's Demonstration Farm, Soil Testing Laboratory and Tissue Culture Laboratory during the year. The farmer’s were educated about the benefits of soil test based nutrient management, advantages of use of Tissue Culture plants in place of traditional plants and the procedure for manufacturing Vermi Compost at their own farm yard. A group of farmers were also given National Level Training on value addition in Banana Crop.
Narmadanagar Rural
Development Society (NARDES):
Through NARDES, an NGO promoted by the employees and their family members, several rural development activities are undertaken to fulfill the Corporate Social Responsibilities in the field of health and hygiene, education, employment, rehabilitation of physically challenged people etc., and the benefit of these community services are being delivered with the sincere intent to improve the quality of life in the regions marked with rural and tribal presence. The Company always gives back-up to NARDES to extend the helping and supportive hands during Natural Calamities to strengthen the efforts made through Government Infrastructure.
Narmada Education and Scientific Research Society (NEST):
Narmada Education and Scientific Research Society (NEST), a Trust promoted by the company has the Narmada College campus as a part of Social Corporate Responsibility. Atits campus, various institutes impart graduate & post graduate level of education in Science, Commerce, Management & Computer Application. Moreover, part time courses are also conducted for the employed professionals in the field of Management (with Bhartiya Vidya Bhavan) and Industrial Safety and Environment (with Technical Education Board, GOG-Gandhinagar).
Business Description
Gujarat Narmada
Valley Fertilizers Company Limited is an India-based company. It manufactures and
distributes nitrogenous and phosphatlc fertilizers, such as urea, ammonium
nitro-phosphate (ANP) and calcium ammonium nitrate (CAN). It also manufactures
chemicals, such as ammonia, weak nitric acid, concentrated nitric acid,
methanol, acetic acid, formic acid, aniline, toluene di-isocyanate (TDI), and
provides services in the area of information technology (IT). The Company
continues to trade in imported fertilizers, such as urea, muriate of potash
(MOP), diammonium phosphate (DAP), water soluble fertilizers and chemicals,
including acetic acid and methanol. It operates in three segments: Fertilizers,
Chemicals and Others. Others segment includes IT division’s activities. During
the fiscal year ended March 31, 2010 (fiscal 2010), it produced 4, 45,505 million
tons of ammonia; 6,01,681 million tons of urea, and 1,66,547 million tons of
ammonium nitro phosphate. For the nine months ended 31 December 2010, Gujarat
Narmada Valley Fertilizers Company Limited revenues decreased 5% to RS2O.338.
Net income decreased 20% to RS1.3B. Revenues reflect decrease in income from
Fertilizers. segment. Net income also reflects an increase in purchase of
traded goods, higher employees costs, a rise in other expenditure, higher other
expenditure and increased depreciation charges.
DIRECTOR REPORT
D.J.ANAJARIA:
Shri. D. C. Anjaria is Non-Executive Independent Director of Gujarat Narmada Valley Fertilisers Company Limited., since 4th January, 2006. He is B.Com. And MBA(Finance), from IIM, Ahmedabad. He has long commercial banking experience spanning around 20 years in India and abroad. His experience extends to operations management, foreign exchange trading, treasury management, financial control and international trade finance. He has held distinguished positions such as Chief Trader, Country Treasurer and Country Financial Controller in India. Details, of his other directorships and committee memberships are - Standard Chartered - STCI Capital Markets limited -Director and Member of Audit Committee, Ratnamani Metals and Tubes Limited Director, Chairman of Audit Committee and member of Shareholders’/ Investors’ Grievance Committee, Gujarat State Fertilizers and Chemicals limited -Director and Chairman of Audit Committee, Gujarat International Finance Tech. City Company Limited .-Director and Chairman of Audit Committee, GIFT Investment Management Co. Ltd-Director and Chairman of Audit Committee, International Financial Solutions (P) Limited Director, Indian Institute of Financial Services (P) Limited Director.
ATANU CHAKRABORTY:
Shri. Atanu Chakraborty, IAS, is Non-Executive Independent
Director of Gujarat Narmada Valley Fertilizers Company Limited, since 28th
July, 2011. He is BE (Electronics and Communications) and has also done Post
Graduate Diploma in Business Finance and MBA from UK. He is a senior IAS
Officer having experience in the field of Management, Finance, Infrastructure
Development and Administration. He has held distinguished positions in the
Government of Gujarat and in Central Government.
T.T RAM MOHAN:
Dr. T. T. Ram Mohan is Non-Executive Independent Director of
Gujarat Narmada Valley Fertilisers Company limited., since 31st August, 2005.
He is B.Tech - Metallurgy, IIT, Mumbai, PGDM, IIM, Kolkata, MBA, Stern School
of Business, New York and Ph.D. (Economics), Stern School of Business, New
York. He is a Professor, finance and accounting area at IIM Ahmedabad. He
worked in consultancy and in the financial sector before entering academics. He
has worked as Divisional Manager with Tata Economic Consultancy Services, Head
of Strategy at Standard Chartered Bank and Vice President with Bear Stearns
Asia Limited .(Hong Kong). At IIM, Ahmedabad, Prof. Ram Mohan specialises in
the financial sector. His current research interests include banking sector
reforms, privatisation and corporate governance. He has run training programmes
for Executives and presented papers at conferences in India and abroad,
published papers and authored three books, including one on financial
regulation. For past 9 years, he has been writing a fortnightly column for 'The
Economic Times'. He was visiting faculty at Stern School of Business; Newyork
University in 2001.He has served on RBI Committees.
ASHOK SHAH:
Dr. Ashok Shah serves as Non-Executive Independent Director
of Gujarat Narmada Valley Fertilisers Company Limited. He is M.Sc., Ph.D (Microbiology). He has
developed various products with the use of seaweed plants, bacterial extracts
and cow urine. He has a long industrial experience of about 20 years in senior
positions. He is the member of: Advisory Board Microbiology and FR South
Gujarat University, Surat; and DRCC, Mumbai Division, Western Railway. He is a
Director on the Board of Gujarat Venture Finance Company Limited and also a
Member of its Shareholders'/Investors' Grievance Committee.
M.M SRIVASTAVA:
Shri. M. M. Srivastava, IAS, is Non-Executive Independent
Director of Gujarat Narmada Valley Fertilizers Company limited, since 22nd
April, 2009. He is M.Sc. and MBA. He is a senior IAS Officer having experience
in the field of Management, Corporate Finance and Accounts and Administration.
He has held distinguished positions in the Government of Gujarat. Presently, he
is Additional Chief Secretary to Government of Gujarat, Finance Department.
A.M TIWARI:
Shri. A. M. Tiwari, IAS, is Managing Director, Executive Director of Gujarat Narmada Valley Fertilizers Company limited, since 14th July, 2011. He is B.Sc. (Botany, Zoology, Chemistry) and M.Sc. (Zoology) from Banaras Hindu University, Varanasi and MBA in Business Administration from University of Ljubljana, Slovenia. He is a senior IAS Officer and has held distinguished positions in the Government of Gujarat and in Government of India. He has a varied experience of over 24 years as Collector (Amreli), Managing Director (Gujarat Women's Development Corporation), Commissioner (Transport) (Geology and Mines), Secretary (Rural Development), Dy. Secretary (Industries, Mines, Energy and Petrochemicals), Deputy Secretary / Director Micro-credit Development Division - Executive Director in Swa- Shakti Project in the Department of Women and Child Development, Ministry of Human Resource Development, Government of India. He has done work in the fields of Tribal Development, Rural Development, Micro Finance Development and Women's empowerment activities. He was Principal Secretary, Tribal Development Department and Government of Gujarat prior to his appointment as Managing Director of the Company.
R.K TRIPATHY:
Shri. R. K. Tripathy, IAS, is Non-Executive Independent
Director of Gujarat Narmada Valley Fertilizers Company limited, since 20th
October, 2010. He is M.A. with Political Science. He is a senior IAS Officer
having experience in the field of Management and Administration. He has held
distinguished positions in the Government of Gujarat. Presently, he is
Principal Secretary to Government of Gujarat, Agriculture and Co-operation
Department.
Members, secured Creditors and Unsecured Creditors approves the scheme
of Arrangement and demerger:
India, Sept. 23 -- Gujarat Narmada Valley Fertilizers
Company Limited has informed BSE that the Scheme of Arrangement and Demerger of
V-SAT and ISP Gateway Business Division / Undertaking of the Company to ING
Satcom Limited has been approved at the respective meetings by the requisite
majority of the Shareholders, Secured Creditors and Unsecured Creditors of the
Company present at the meeting held on August 31, 2011. The result of the Poll,
taken at the aforesaid Meetings, has been reported to the Honble High Court of
Gujarat in the form of the Chairmans Report on September 15, 2011.The Company
has submitted to BSE a copy of the Minutes of the Court convened Meeting of the
(i) Members (ii) Secured Creditors & (iii) Unsecured Creditors of the
Company held on August 31, 2011, in terms of the direction passed by the Honble
High Court of Gujarat vide its Order dated July 11, 2011. Published by HT
Syndication with permission from ACCORD FINTECH BSE. For any query with respect
to this article or any other content requirement, please contact Editor at
htsyndication@hindustantimes.com
Change in Company’s Statutory Auditors:
India, Sept. 19 -- Gujarat Narmada Valley Fertilizers Company Limited has informed BSE about the change taken place in the Company’s Statutory Auditors as mentioned hereunder :1. Name of Auditors : M/s Deloitte Haskins & Sells, Chartered Accountants, Ahmedabad- Date of Appointment or Change : September 17, 2011.- Brief particular of change : The Members of the Company have at their 35th Annual General Meeting, passed a Special Resolutionappointing M/s Deloitte Haskins & Sells, Chartered Accountants, Ahmedabad as Statutory Auditors in place of M/s R S Patel and Co., Chartered Accountants, Ahmedabad. Published by HT Syndication with permission from ACCORD FINTECH BSE. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com
AGM on Sep 17, 2011:
India, Aug. 12 -- Gujarat Narmada Valley Fertilizers Company Limited has informed BSE that the 35th Annual General Meeting (AGM) of the Company will be held on September 17, 2011. Published by HT Syndication with permission from ACCORD FINTECH BSE. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com
ICRA reaffirms rating of ICRA AA- for GNFC’ Term loans:
India, Aug. 11 -- ICRA has reaffirmed a rating of [ICRA]AA- to the Term loans of Gujarat Narmada Valley Fertilizers Company (GNFC) for an amount of Rs 3156.000 millions The credit rating agency has also reaffirmed the [ICRA]AA- rating assigned to the Rs 430.000 millions fund based limits of GNFC.Meanwhile, the rating agency has retained the outlook on long term rating of the company as "stable". ICRA has also reaffirmed the [ICRA]A1+ rating to the Rs 400.000 millions non fund based limits and Rs 200.000 millions Commercial Paper programe of the company. The reaffirmed ratings reflect the strengths of the company such as established market position in fertilizers business (with its fertilizer brand Narmada being well entrenched within the farmer community especially in Gujarat), market leadership in chemicals business for products including Methanol, Acetic acid and TDI, diverse chemicals product portfolio with vertical integration benefits and the continued improvement in demand and pricing outlook for key chemicals during FY2011 & FY2012.GNFC is engaged mainly in the manufacture of fertilizers such as urea, ANP and CAN, and industrial chemicals such as methanol, acetic acid, formic acid, and nitric acid. The company also trades in a few fertilizers and chemicals. Published by HT Syndication with permission from Accord Fintech. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com
FIXED ASSETS:
- Intangible Assets – Goodwill
- Free Hold Land
- Roads, Culverts and Compound wall
- Buildings
- Plant and machinery
- Intangible assets – Software’s and Licence
- Railway Siding
- Water Supply and Drainage Systems
- Furniture, Fixture and equipment
- Vehicles
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.48.82 |
|
UK Pound |
1 |
Rs.78.57 |
|
Euro |
1 |
Rs.69.29 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
68 |
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.