|
Report Date : |
12.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
D. No. 8-2-248, Nagarjuna Hills, Punjagutta, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
07.11.2006 |
|
|
|
|
Com. Reg. No.: |
01-076238 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.4467.837 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U24129AP2006PLC076238 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer and Supplier of plant nutrients. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 61970000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having satisfactory track.
Trade relations are reported as fair. Business is active. Payments are
reported to be correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office/ Corporate
Office : |
D. No. 8-2-248, Nagarjuna Hills, Punjagutta, Hyderabad – 500082,
Andhra Pradesh, India |
|
Tel. No.: |
91-40-23357200 / 23357204 / 23356414 / 23356418 |
|
Fax No.: |
91-40-23354788 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Kakinada East, Godavari District – 533003, Andhra Pradesh, India |
|
Tel. No.: |
91-884-2360390 / 2360391 |
|
Fax No.: |
91-884-2362084 / 23675020 |
|
E-Mail : |
|
|
|
|
|
Marketing Office : |
A/612, Dalamal Tower, 211, Nariman Point Mumbai – 400021, Maharashtra,
India |
|
Tel. No.: |
91-22-26163195 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. K.S. Raju |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. K. Rahul Raju |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Mr. Bal Krishna Batra |
|
Designation : |
Nominee Director of IDBI |
|
|
|
|
Name : |
Mr. Chandra Pal Singh Yadav |
|
Designation : |
Nominee Director of KRIBHCO |
|
|
|
|
Name : |
Mr. M.P. Radhkrishnan |
|
Designation : |
Nominee Director of SBI |
|
|
|
|
Name : |
Dr. N.C.B. Nath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.P. Arora |
|
Designation : |
Nominee Director of IFCI |
|
|
|
|
Name : |
Mr. S.R. Ramakrishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Yogesh Rastogi |
|
Designation : |
Nominee Director of ICICI Bank Limited |
|
|
|
|
Name : |
Mr. Ashok Chopra |
|
Designation : |
Nominee of IDBI |
|
|
|
|
Name : |
Mr. Sunil Sharma |
|
Designation : |
Nominee of Government of Andhra Pradesh |
|
|
|
|
Name : |
R S Nanda |
|
Designation : |
Director and Chief Operating Officer |
KEY EXECUTIVES
|
Name : |
M Ramakanth |
|
Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
1. A. Promoter’s Holding |
|
|
|
Indian Promoters |
294033260 |
49.16% |
|
Foreign Promoters |
13200000 |
2.21% |
|
2. Persons acting in Concert # |
|
|
|
Sub -Total |
307233260 |
51.37% |
|
B. Non–Promoters Holding |
|
|
|
3. Institutional Investors |
|
|
|
a. Mutual Funds and UTI |
1173425 |
0.20% |
|
b. Banks, Financial Institutions, Insurance Companies (Central / State
Govt. Institutions / Non-Government Institutions) |
8933409 |
1.49% |
|
c. Foreign Institutional Investors |
10082944 |
1.69% |
|
Sub -Total |
20189778 |
3.38% |
|
4. Others |
|
|
|
a. Private Corporate Bodies |
66154931 |
11.06% |
|
b. Indian Public |
172819586 |
28.90% |
|
c. NRIs / OCBs |
5776991 |
0.97% |
|
d. Any other (please specify) |
25890457 |
4.33% |
|
Sub -Total |
270641965 |
45.25% |
|
GRAND TOTAL |
598065003 |
100.00% |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Supplier of plant nutrients. |
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Ammonia # |
MT / Day |
2100 |
942487.00 |
|
Urea # |
MT / Day |
3620 |
1655042.00 |
|
Extruded Irrigation Systems & parts thereof |
Lakh Mtrs / Annum |
874 |
1094.83 |
|
PVC pipes |
MT / Annum |
5467 |
40.10 |
|
Wind Energy |
KWH |
-- |
2192004 |
Note:
* Licenced Capacity is not applicable in terms of Government of India
Notification No. S.0.477(E) dated 25th July, 1991. Registered pursuant to the
scheme of delicensing.
@ As certified by the Management and relied upon by the Auditors being a
technical matter.
# Re-assessed capacity by
Government of India.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of India ·
UCO Bank ·
ICICI Bank |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Facilities : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
M Bhaskara Rao and Company Chartered Accountants |
|
Address : |
Hyderabad – 500082, Andhra Pradesh, India |
|
|
|
|
Subsidiaries : |
·
Nagarjuna Oil Corporation Limited ·
Jaiprakash Engineering and Steel Company Limited ·
Kakinada Fertilizers Limited ·
Nagarjuna Mauritius Private Limited |
|
|
|
|
Step down Subsidiaries : |
Nagarjuna East
Africa Limited (Subsidiary of Nagarjuna Mauritius Private Limited) |
|
|
|
|
Associates : |
·
IKisan Limited ·
Nagarjuna Agrichem Limited ·
Nagarjuna Foundation ·
Nagarjuna Oil Refinery Limited |
|
|
|
|
Enterprises able
to exercise significant influence : |
·
Nagarjuna Management Services Private Limited ·
Nagarjuna Holdings Private Limited ·
Nagarjuna corporation Limited |
CAPITAL STRUCTURE
After: 12.07.2011
Authorised Capital : Rs.8010.000
Millions
Issued Capital, Subscribed & Paid-up Capital : Rs.0.500 Million
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
600000000 |
Equity Shares |
Rs.10/- each |
Rs.6000.000 Millions |
|
20000000 |
Preference Shares |
Rs.100/- each |
Rs.2000.000 Millions |
|
|
Total |
|
Rs.8000.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
428181821 |
Equity Shares |
Rs.10/- each |
Rs.4281.818
Millions |
|
3720372 |
0.01% Ordinary Redeemable Preference Shares |
Rs.100/-
each |
Rs.372.037
Millions |
|
|
Total |
|
Rs.4653.855 Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
428181821 |
Equity Shares (Of the above1,29,94,561
Equity Shares were allotted as fully paid pursuant to approved Schemes of
amalgamation without payment being received in cash) |
Rs.10/- each |
Rs.4281.818
Millions |
|
1860187 |
0.01% Ordinary Redeemable Preference Shares |
Rs.100/- each |
Rs.186.019
Millions |
|
|
Total |
|
Rs.4467.837 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 |
4467.837 |
4653.855 |
4652.031 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11024.995 |
11173.871 |
11574.804 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
15492.832 |
15827.726 |
16226.835 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12814.874 |
8615.096 |
12475.066 |
|
|
2] Unsecured Loans |
1375.705 |
1158.423 |
675.020 |
|
|
TOTAL BORROWING |
14190.579 |
9773.519 |
13150.086 |
|
|
DEFERRED TAX LIABILITIES |
1731.388 |
1811.465 |
1812.119 |
|
|
|
|
|
|
|
|
TOTAL |
31414.799 |
27412.710 |
31189.040 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
17753.034 |
18550.878 |
19612.674 |
|
|
Capital work-in-progress |
333.961 |
92.229 |
875.570 |
|
|
|
|
|
|
|
|
INVESTMENT |
9215.141 |
7225.067 |
7224.567 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
680.035
|
593.772 |
749.423 |
|
|
Sundry Debtors |
5427.868
|
2981.619 |
3460.499 |
|
|
Cash & Bank Balances |
1207.811
|
619.591 |
576.997 |
|
|
Other Current Assets |
0.000
|
0.000 |
647.817 |
|
|
Loans & Advances |
465.241
|
1151.712 |
1144.942 |
|
Total
Current Assets |
7780.955
|
5346.694 |
6579.678 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2051.650
|
2946.030 |
2755.273 |
|
|
Other Current Liabilities |
974.038
|
496.576 |
257.176 |
|
|
Provisions |
642.604
|
359.552 |
91.000 |
|
Total
Current Liabilities |
3668.292
|
3802.158 |
3103.449 |
|
|
Net Current Assets |
4112.663
|
1544.536 |
3476.229 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
31414.799 |
27412.710 |
31189.040 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
30871.134 |
19879.092 |
23719.061 |
|
|
|
Other Income |
131.734 |
217.731 |
119.918 |
|
|
|
TOTAL (A) |
31002.868 |
20096.823 |
23838.979 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of Traded products |
11990.233 |
5336.617 |
3959.298 |
|
|
|
Raw Material consumed |
5649.186 |
4067.246 |
7313.159 |
|
|
|
Power and Fuel |
3881.427 |
3119.126 |
4704.250 |
|
|
|
Catalyst Charges |
0.780 |
57.187 |
54.397 |
|
|
|
Chemicals and Consumables |
90.074 |
73.256 |
53.550 |
|
|
|
Salaries, Wages and benefits |
1432.213 |
773.424 |
662.629 |
|
|
|
(Increase)/Decrease in Stock |
(106.159) |
134.514 |
1061.512 |
|
|
|
Packing Material consumed |
620.881 |
454.010 |
445.071 |
|
|
|
Transport and Handling charges |
2105.226 |
1287.780 |
1424.144 |
|
|
|
Distribution Expenses |
58.492 |
83.446 |
88.405 |
|
|
|
Other Expenses |
926.241 |
898.642 |
666.999 |
|
|
|
TOTAL (B) |
26648.594 |
16285.248 |
20433.414 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4354.274 |
3811.575 |
3405.565 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1423.944 |
1415.665 |
1693.220 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2930.330 |
2395.910 |
1712.345 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
949.841 |
1281.757 |
1209.569 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1980.489 |
1114.153 |
502.776 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
806.988 |
450.419 |
178.632 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
1173.501 |
663.734 |
324.144 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1845.234 |
1582.019 |
1257.918 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Capital Redemption Reserve |
186.019 |
0.000 |
0.000 |
|
|
|
Transfer to General Reserve |
0.000 |
150.000 |
0.000 |
|
|
|
Preference Dividend |
0.019 |
0.037 |
0.037 |
|
|
|
Proposed Dividend - Equity |
428.196 |
214.091 |
0.000 |
|
|
|
Dividend Tax |
69.467 |
36.391 |
0.006 |
|
|
BALANCE CARRIED
TO THE B/S |
2335.034 |
1845.234 |
1582.019 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Services |
1.866 |
32.816 |
0.000 |
|
|
TOTAL EARNINGS |
1.866 |
32.816 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Spares |
83.674 |
16.963 |
23.572 |
|
|
|
Traded Products |
7988.855 |
1633.473 |
257.284 |
|
|
|
Capital Goods |
124.459 |
175.773 |
57.819 |
|
|
TOTAL IMPORTS |
8196.988 |
1826.209 |
338.675 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.74 |
1.55 |
0.76 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st Quarter |
30.09.2011 2nd Quarter |
31.12.2011 3rd Quarter |
31.03.2012 4th Quarter |
|
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net Sales |
3892.960 |
16538.700 |
15116.580 |
14461.660 |
|
Total Expenditure |
3075.710 |
15067.320 |
14108.910 |
12920.280 |
|
PBIDT (Excl OI) |
817.250 |
1471.380 |
1007.670 |
1541.380 |
|
Other Income |
24080 |
21.210 |
54.550 |
69.890 |
|
Operating Profit |
541.330 |
1492.590 |
1062.220 |
1611.270 |
|
Interest |
286.400 |
435.670 |
458.780 |
349.640 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
554.930 |
1056.920 |
603.440 |
1261.630 |
|
Depreciation |
197.580 |
356.680 |
267.450 |
348.440 |
|
Profit Before Tax |
357.350 |
700.240 |
336.000 |
913.190 |
|
Tax |
88.930 |
414.840 |
133.150 |
310.310 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
268.430 |
285.400 |
202.850 |
602.880 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
268.430 |
285.400 |
202.850 |
602.880 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.79
|
3.30 |
1.36 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.41
|
5.60 |
2.12 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.76
|
4.66 |
1.92 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.07 |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.15
|
0.86 |
1.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.12
|
1.41 |
2.12 |
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Constitution
of the firm |
Yes |
|
Premises
details |
No |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
Yes |
|
No.
of Employees |
No |
|
Name
of Person Contacted |
No |
|
Designation
of contact person |
No |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
- |
|
Estimation
for coming financial year |
No |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
Yes |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
No |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
- |
|
Litigations
that the firm / promoter involved in |
- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
Yes |
|
Conduct
of the banking account |
- |
|
Buyer
visit details |
- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
Yes |
|
Major
Shareholders, if applicable |
No |
PLANT OPERATIONS
Urea
The Company during
the year manufactured 16.55 LMT of Urea as against 14.82 LMT in the previous year.
The Company during the year undertook various initiatives for improving energy
efficiency, safety, health environment, reliability and cost reduction.
Micro Irrigation
The Company achieved
a production of 1135 Lakh Mtrs against of 801 Lakh Mtrs during the previous
year.
MARKETING
Urea
The Company
achieved a sale of manufactured urea of 16.48 LMT compared to 15.05 LMT in the
previous year. The total urea sales both manufactured and imported was 22.03
LMT compared to 21.19 LMT of previous year.
Specialty
Fertilizers
The Company sold
9226 MTS during the year, in comparison with sales of 8263 MTS during the
previous year.
Micro Irrigation
The Company during
the year achieved 21.92% growth in sales aggregating Rs.110.94 crores as
compared with that of the previous year (Rs.90.99 crores).
Operations in
Africa
The Company after
a detailed analysis and market research consider it necessary to explore the
opportunities available in Africa. The Company to begin with has set-up a
branch office in Nairobi, Kenya, to start its International Sales and Marketing
operations in Africa. In the initial stage, it is proposed to market plant
nutrients and thereafter foray into Micro Irrigation systems at a later stage.
The Company also
in view of the rapidly growing demand for fertilizers, micro nutrients and
Micro Irrigation systems in Kenya, Burundi, Rwanda, Tanzania, Uganda and other
African countries, proposes to explore these countries also in a phased manner.
Awards
The Company during
the year bagged various prestigious awards, such as :
Best Management Award from the
Government of Andhra Pradesh, FE – EVI Green Business Leadership Best
Performer Award for 2009-10 from M/s. Financial Express and Emergent
Ventures India Limited, ICC Award – 2010 from Best Water Resource
Management for the year 2009, Award for Excellence in Safety for the
year 2009 and Platinum Award by the Jury of Economic Times and India
Manufacturing Excellence Award for the year 2010.
SUBSIDIARY
COMPANIES
During the year,
the company incorporated a wholly owned subsidiary in Mauritius on April 20,
2010, under the name and style of ‘Nagarjuna Mauritius Private Limited’ (NMPL)
to enable the company undertake its various overseas operations. NMPL
incorporated a wholly-owned subsidiary in Kenya under the name and style of
‘Nagarjuna East Africa Limited’ (NEAL) on October 15, 2010 to undertake
operations in Kenya. NMPL is yet to make any investment in the equity of NEAL.
The Ministry of
Corporate Affairs, New Delhi, vide Circular No.5/12/2007-CL-III dated February
8, 2011 granted general exemption under Section 212(8) of the Companies Act,
1956 in relation to providing information on the subsidiary companies provided
certain conditions are fulfilled.
Pursuant to the
said circular, the Board of Directors of the company gave their consent for not
attaching the Balance Sheets of the subsidiary companies to the Annual Accounts
of the company. Accordingly, the
Balance Sheets and
other financial statements relating to the following companies are not attached
to the Annual Accounts of the company.
1. Jaiprakash
Engineering and Steel Company Limited (JESCO)
2. Nagarjuna Oil
Corporation Limited (NOCL)
3. Kakinada
Fertilizers Limited (KFL)
4. Nagarjuna
Mauritius Private Limited (NMPL)
5. Nagarjuna East
Africa Limited (NEAL)
Any member seeking
information on any of the subsidiary companies may write to the company to
enable the same to be forwarded.
Jaiprakash
Engineering and Steel Company Limited (JESCO)
The company is
considering implementing various Infrastructure projects to utilize the
available land appropriately and gainfully.
Nagarjuna Oil
Corporation Limited (NOCL)
Nagarjuna Oil
Corporation Limited, the company’s subsidiary, is settingup 6 million metric
tons per annum refinery project at Cuddalore, Tamil Nadu. NOCL has made
substantial progress. During the previous year, the project cost of the
Refinery Project was revised to Rs.6960 crores. An amount of Rs.4158 crores
(provisional) has been spent by NOCL on the Refinery Project as of March 31,
2011.
The financial
institutions have approved the increased project cost and the tie-up for the
additional equity is in advanced stage with prospective investors.
NOCL has made
substantial progress on various fronts such as engineering activities for all
the relocated units, civil work, offsites and utilities, infrastructure and
marine facilities.
Kakinada
Fertilizers Limited (KFL)
KFL was set-up to
carry out activities relating to manufacturing / trading of urea and other
fertilizers. The company shall be merged with KFL during the current year and
KFL shall carry on the fertilizer business of the company. KFL will be renamed
as ‘Nagarjuna Fertilizers and Chemicals Limited’ after the scheme of merger is
approved.
Nagarjuna
Mauritius Private Limited
Nagarjuna
Mauritius Private Limited (NMPL) is a wholly owned subsidiary of NFCL with a paid
up capital of Euro 5 Million with an object of investing in stocks, funds,
shares, securities, foreign currencies or other investments. The Company has
invested Euro 5 Million which has been reinvested in Nagarjuna Spawnt GmbH,
Germany, in the form of equity (24%) and balance as loan.
Nagarjuna Spawnt
GmBH, Germany, is in the process of setting-up a plant for manufacture of
silane chemicals of 15 tons per annum capacity in two stages of 7.5 ton
capacity each. The erection of the plant is expected to be completed by the
second half of the financial year and pre-commission activity shall be
completed thereafter.
Nagarjuna East
Africa Limited
Nagarjuna East
Africa Limited, a wholly owned subsidiary of Nagarjuna Mauritius Private Limited
was incorporated in Kenya on October 15, 2010 to market plant nutrients in the
initial stages followed by Micro Irrigation systems at later stage in Kenya.
MANAGEMENT
DISCUSSION AND ANALYSIS
1. INDIAN ECONOMY
AND AGRICULTURE
The Indian economy has shown great resilience and has successfully
withstood the impact of global economic slowdown and the financial crisis of
2007–09, the ripple effect of which still continues in 2010–11.
Despite negative growth in agriculture and allied sectors in 2008–09,
the erratic monsoons, drought in 2009–10 and unseasonal late rains affecting
the winter crops in 2010–11, the turnaround of the Indian economy has been fast
and maintained a healthy growth rate of over 8% in the last two years. Growth
in agriculture and allied sectors is still a critical factor in the overall
performance of the Indian economy.
In the 1960’s the Indian agricultural sector saw a major breakthrough in
the implementation of the Green Revolution. This resulted in high agricultural
production and productivity in the subsequent years, thereby attaining food
security to a large extent.
The present scenario today is such that a second Green Revolution is
required to enhance agricultural production and productivity. This is necessary
to ensure food security to India’s growing population.
2. FERTILIZER
INDUSTRY SCENARIO
The fertilizer industry is a vital sector to ensure food security. The
complexity of the industry with different players with diverse feed stocks and
location has created adequate reasons for inability to enforce a uniform
consistent policy. The uncertainties of policy have resulted in lack of
incentives for growth and no new investments in brown field and green field
projects are being envisaged in the immediate future.
The Nutrient Based Scheme (NBS) which was made effective from April 1,
2010 for phosphatic and potassic fertilizers has seen encouraging demand
despite price hikes.
In the recently announced budget, the government is actively considering
extension of the NBS scheme to urea and also plans to move towards direct cash
transfers of subsidies.
The budget also proposes capital investments in fertilizer production to
be included as an infrastructure sub-sector and extend benefit of deductions under
Income Tax Act. The implementation of this proposal needs to be watched.
While the implementation of NBS for urea sector may be positive for the
industry in the long run, as such a shift would encourage efficiency in the
system, the exact modalities of the system requires detailed planning in view
of the complexity of the industry.
Key issues with regard to gas availability and pricing need to be
addressed along with a comprehensive long term policy to encourage any
significant investments in this vital sector.
FUTURE STRATEGIC
DIRECTIONS
With the commissioning of the CDR Plant of 450 metric tonnes per day of
CO2 capacity, completion of revamp and debottlenecking projects, the Company
has increased its production by about two lakh metric tones per annum. The
Micro Irrigation business is also doing well by establishing new production
lines and also by marketing products in new states in India.
The Company while exploring various growth options to enhance its
revenue streams was able to identify a low cost high technology state-of-art
process to manufacture speciality chemicals used in solar applications as one
of the future projects, which would benefit the Company.
The Company accordingly through Nagarjuna Mauritius Private Limited, a
subsidiary Company, made investment in Nagarjuna Spawnt GmbH, for setting up a
15 tons per annum plant in two stages of 7.5 tons capacity each. The erection
of the plant and commissioning is expected to be completed this year.
The Company had identified Africa as a next destination for exploring
growth opportunities. In view of the opportunities available there, the Company
has set-up a branch office in Nairobi, Kenya, to start its International Sales
and Marketing operations in Africa. In the initial stage, it is proposed to
market plant nutrients and thereafter foray into Micro Irrigation systems at a
later stage. During the next year, the Company will venture into Ghana, South
Africa and other places.
The Company is in the process of obtaining requisite approval for a
Composite Scheme of Amalgamation and Arrangement (Scheme) for merger of itself
along with Ikisan Limited with Kakinada Fertilizers Limited and demerger of its
oil business into Nagarjuna Oil Refinery Limited.
This Scheme will unlock shareholders wealth and enhance value to
shareholders’ investments apart from segregation of like business and demerger
of unlike business. This will help achieve synergies in businesses, inorganic
growth and capturing the untapped market share by enhancing the product portfolio
of the Company. It would also enable the Company to emerge as a strong player
both in the fertilizer and micro irrigation sector and enable the shareholders
to enjoy the benefits of both the Fertilizer and Oil sector by being
shareholders in two listed companies. The members at the meeting held on April
15, 2011 had approved the Scheme.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER/NINE MONTHS ENDED 31st MARCH 2012
(Rs.
In Millions)
|
|
Three months ended |
Year ended |
|
|
PARTICULARS |
31.03.2012 (Audited) |
31.12.2011 (Unaudited) |
31.03.2012 (Unaudited) |
|
Income from operations |
|
|
|
|
1. a) Sales/Income from operations |
14478.567 |
1512.091 |
49989.629 |
|
Less: Excise Duty |
26.284 |
21.585 |
88.589 |
|
Net Sales/Income from operations |
14452.283 |
15090.506 |
49901.040 |
|
b) Other Operating
Income |
9.372 |
5.763 |
21.759 |
|
Total |
14461.655 |
15096.269 |
49922.799 |
|
2. Expenses |
|
|
|
|
a) Cost of raw materials |
1709.691 |
1822.772 |
6382.235 |
|
b) Power and Fuel |
1034.227 |
1080.377 |
3972.685 |
|
c) Purchases of traded
products |
6292.818 |
12074.949 |
30571.781 |
|
d) Employees Cost |
1947.202 |
(2343.935) |
(1563.406) |
|
e) Depreciation |
331.228 |
229.600 |
1347.517 |
|
f) Packing, Transport
& Handling |
348.439 |
267.450 |
1170.134 |
|
g) Other expenditure |
1605.116 |
1265.677 |
4498.901 |
|
Total |
13268.721 |
14396.890 |
46379.847 |
|
3. Profit(+)/Loss(-)
from Operations before Other Income, Interest & Exceptional Items (1-2) |
1192.934 |
699.379 |
3542.952 |
|
4. Other Income |
69.893 |
95.405 |
294.321 |
|
5. Profit(+)/Loss(-)
before Interest & Exceptional Items (3+4) |
1262.827 |
794.784 |
3837.273 |
|
6. Finance Cost |
349.641 |
458.784 |
1530.493 |
|
7. Profit(+)/Loss(-) before
Exceptional Items(5-6) |
913.186 |
336.000 |
2306.780 |
|
8. Exceptional Items |
- |
- |
- |
|
9. Profit(+)/Loss(-) from ordinary activities before Tax (7+8) |
913.186 |
336.000 |
2306.780 |
|
10. Tax Expense |
310.308 |
133.154 |
947.225 |
|
11. Net Profit(+)/Loss(-) from Ordinary Activities after Tax (9-10) |
602.878 |
202.846 |
1359.555 |
|
12. Extraordinary Items |
- |
- |
- |
|
13. Net Profit for the period (11-12) |
602.878 |
202.846 |
1359.555 |
|
14. Paid-up Equity Share
Capital (Face Value of Rs. 1/- per share) |
598.065 |
598.065 |
598.065 |
|
15. Reserves excluding
revaluation reserve |
22389.090 |
- |
22389.090 |
|
16. Earning Per Share
(not annualised) - Rs. - Basic before/after
extraordinary items |
1.01 |
0.34 |
2.27 |
|
17. Public Shareholding |
|
|
|
|
- No. of shares |
290831743 |
290831743 |
290831743 |
|
- Percentage of
shareholding |
48.63% |
48.63% |
48.63% |
|
18.Promoters and
Promoter group Share holding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- No. of shares |
129416560 |
129416560 |
129416560 |
|
- Percentage of shares
(as a % of the total shareholding of Promoter and promoter group) |
42.12% |
42.12% |
42.12% |
|
- Percentage of shares
(as a % of the total share capital of the company) |
21.64% |
21.64% |
21.64% |
|
b) Non-encumbered |
|
|
|
|
-No. of shares |
177816700 |
177816700 |
177816700 |
|
- Percentage of shares
(as a % of the total shareholding of Promoter and promoter group) |
57.88% |
57.88% |
57.88% |
|
- Percentage of shares (as
a % of the total share capital of the company) |
29.73% |
29.73% |
29.73% |
|
Particular
|
Three months
ended |
|
31.03.2012 |
|
|
INVESTOR COMPLAINTS |
|
|
Pending at the beginning of the quarter |
NIL |
|
Received during the quarter |
12 |
|
Disposed of during the quarter |
12 |
|
Remaining unresolved at the end of the quarter |
NIL |
STATEMENT OF ASSETS AND LIABILITIES AS AT 31ST MARCH, 2012
|
Particulars |
31.03.2012 |
|
|
A. EQUITY AND LIABILITIES |
|
|
|
1) Shareholders' Funds |
|
|
|
(a) Share Capital |
589.065 |
|
|
(b) Reserves and Surplus |
22389.090 |
22987.155 |
|
|
|
|
|
2) Non-Current Liabilities |
|
|
|
(a) Long-Term Borrowings |
5176.632 |
|
|
(b) Deferred Tax Liabilities (Net) |
1854.709 |
|
|
(c) Other Long Term Liabilities |
384.212 |
|
|
(d) Long-Term Provisions |
144.024 |
7559.577 |
|
|
|
|
|
3) Current Liabilities |
|
|
|
(a) Short-term borrowings |
15350.861 |
|
|
(b) Trade payables |
6154.263 |
|
|
(c) Other current liabilities |
2807.923 |
|
|
(d) Short-term provisions |
704.510 |
25027.557 |
|
|
|
|
|
Total |
|
55574.289 |
|
B. ASSETS |
|
|
|
1) Non-Current Assets |
|
|
|
(a) Fixed Assets |
|
|
|
(i) Tangible Assets |
31631.717 |
|
|
(ii) Intangible Assets |
442.260 |
|
|
(iii) Capital work-in-progress |
8.665 |
|
|
(b) Non-Current Investments |
531.117 |
|
|
(c) Long-term Loans and Advances |
106.037 |
|
|
(d) Other Non-Current Assets |
18.300 |
32738.096 |
|
|
|
|
|
2) Current Assets |
|
|
|
(a) Inventories |
2274.963 |
|
|
(b) Trade Receivables |
17358.586 |
|
|
(c) Cash and Bank balances |
2802.016 |
|
|
(d) Short-term loans and advances |
358.328 |
|
|
(e) Other current assets |
42.300 |
22836.193 |
|
|
|
|
|
Total
|
|
55574.289 |
Notes:
1.
The Composite Scheme of Arrangement and
Amalgamation (Scheme) of Ikisan Limited (iKisan) and Kakinada Fertilizers Limited
(KFL), a wholly owned subsidiary of NFCL and Nagarjuna Fertilizers and
Chemicals Limited (NFCL) and Nagarjuna Oil Refinery Limited (NORL) and their
respective shareholders and creditors under Section 391 to 394 and other
applicable provisions of the Companies Act, 1956, was approved by the
jurisdictional High Courts in Bombay at Mumbai and Andhra Pradesh at Hyderabad
on June 17, 2011 and June 27, 2011 respectively.
2.
Pursuant to the Scheme:
a)
Oil Business Undertaking of NFCL was demerged into
NORL and residual NFCL and Ikisan are merged in to KFL.
b)
The Effective Date of the Scheme is July 30, 2011
but shall be operative from the Appointed Date i.e., April 1, 2011. The Record
Date for determining shareholders eligible to receive shares of KFL and NORL was
fixed as September 1, 2011.
c)
Equity Shares were allotted to the shareholders of
NFCL and Ikisan on October 1, 2011 and the accounts of the respective
shareholders were credited in electronic mode or share certificates issued, as
the case may be. Consequent to the allotment of shares, the existing pre‐arrangement issued
capital of Rs.5 lakhs stood cancelled.
d)
The Bombay Stock Exchange vide letter dated
December 14, 2011 approved the application of the company for listing of the
equity shares and the National Stock Exchange vide letter dated January 13,
2012 accorded in‐principle approval
for listing of the equity shares subject to relaxation by Securities and
Exchange Board of India from requirements under Rule 19(2)(b) of Securities
Contracts (Regulation) Rules, 1957.
3.
The above financial results for the year / quarter
have been drawn up incorporating necessary adjustments as envisaged in the
Scheme, approved by the jurisdictional courts, from the Appointed Date i.e.,
from April 1, 2011 onwards.
4.
The financial results comprise of the combined
operations of the Company relating to Fertilizer, Micro Irrigation, Agri
Services and Wind Energy generation businesses of merged entities. The
financial results of Micro Irrigation segment, Wind Energy segment and Agri
Services segment being less than the limit prescribed for separate disclosure
in Accounting Standard 17, have not been shown separately.
5.
Income from urea operations is accounted on the
basis of prices notified under Stage III New Pricing Policy by the Government
of India (GOI) which has been further extended from 01‐04‐2010 onwards until
further orders. Input escalation / de‐escalation, freight subsidy and Import
Parity Price benefit are accounted in accordance with parameters notified by
GOI. Adjustments, if any, required will be considered on notification of final
prices.
6.
The Company, KFL now renamed as NFCL as per the
scheme, did not have any operations during the previous year. Accordingly,
comparative figures for the previous periods have not been furnished.
7.
Consolidated financial statements are not published
since the projects of the subsidiary company are in the implementation stage.
8.
Tax Expense includes income tax and deferred tax.
9.
Previous quarter / period figures have been re‐grouped / re‐classified
wherever necessary to make them comparable with the current quarter / period.
10.
The Board of Directors recommended a dividend of Rs
1/‐ Per share to the
equity share holders of the company for the year 2011‐12.
11.
The above results were reviewed by the Audit
Committee and approved by the Board of Directors at their respective meetings
held on May 28, 2012.
2. Contingent
Liabilities not provided for:
i. Counter guarantees given to Bankers in respect of Bank guarantees Rs.
136.392 Millions (Previous year Rs. 170.444 Millions)
ii. Commitment on account of ‘Sponsor undertaking’ given pursuant to the
agreement with the lenders and shareholders of Nagarjuna Oil Corporation Ltd, a
subsidiary, for funding of project cost overrun, if any.
iii. Income Tax matters under appeals Rs 166.017 Millions (Previous Year
Rs. 102.845 Millions)
iv. Compensation in respect of 86.55 (Previous Year 86.55) acres of land
in possession - amount not ascertained.
v. Claims against the Company not acknowledged as debts Rs 112.904
Millions (Previous year Rs. 191.904 Millions).
FIXED ASSETS
·
Land
·
Buildings
·
Roads, Drains and Culverts
·
Railway Siding
·
Plant and Machinery
·
Furniture, Fixtures and Office Equipment
·
Vehicles
PRESS RELEASES
NFCL REVAMP MEASURES
– PRODUCTION TO GO UP BY 3.71 LAKH METRIC TONNE PER ANNUM UREA
Nagarjuna Fertilizers and Chemicals Limited is operating Natural Gas
based Fertilizer Plants at Kakinada, Andhra Pradesh, which consists of two
Units to produce Urea Fertilizer having a capacity of around 6 Lakhs MT per
Annum each. Unit-I was commissioned in Aug 1992, is fully based on Natural Gas
both as feed and fuel. Unit-II was commissioned in March 1998 and can operate
on a mixture of Naphtha and Natural Gas in varying proportions depending upon
the availability of Natural gas.
In anticipation of availability of additional Natural Gas from RIL KG
Basin D-6 Block, NFCL had initiated Revamp / De-bottlenecking schemes
stage-wise in the year 2006 in order to increase the Capacity, reduce Pollution
and improvement in Energy and Reliability. Accordingly, in Revamp Phase-I,
which mainly consisted of Installation of S-300 Ammonia Converter, replacement
of Synloop Water Cooler, replacement of Air Pre-heater, replacement of HRSG-C
economizer, etc., were implemented in the year 2007-08 with an investment of
Rs. 550.000 Millions and has resulted in Production increase of 50,000 MT per
Annum from Unit-I.
Revamp Phase-II was initiated in the year 2007, mainly to convert Unit-II
fully operational on Natural Gas and to implement de-bottlenecking measures in
order to augment the capacity and to reduce emissions. Accordingly, CDR Plant
was installed and commissioned during Mar 2009. The CDR Plant recovers Carbon
Di-Oxide from Reformer flue gas and there by reduces the emissions. Revamp of
both the plants were also taken up and schemes have been commissioned on 23rd
September 2009 in Unit-I and on 28th September 2009 in Unit-II. With the
measures taken up in Revamp Phase I and Phase-II, the production capacity has
increased to 15.66 Lakh MTPA from 11.95 Lakh MTPA. The investment for Revamp
Phase-II was approx. Rs. 2000.000 Millions.
Apart from de-bottlenecking for capacity enhancement, due thrust has
been given for reduction of specific energy consumption and also enhancement of
reliability of the existing equipment. The energy consumption shall be reduced
from 5.66 Gcal / MT of Urea to 5.50 Gcal / MT of Urea.“Serving Society through
Industry” was the mission of NFCL founder Shri K V K Raju. On the same lines, NFCL taken up these
measures, which will help in making more Urea available to the Farming
community, besides bringing down the subsidy burden to the Govt. of India and
also substantially reducing the Imports of Urea by the Country. The measures taken up for recovery of 450
MTPD of CO2 from flue gases and reduction of energy shall also qualify as
‘Clean Development Mechanism’ projects.
Kakinada, March
24, 2009
NAGARJUNA
FERTILIZERS AND CHEMICALS LIMITED MOVES TOWARDS CLEAN DEVELOPMENT MECHANISM BY
COMMISSIOINING CARBON DIOXIDE RECOVERY (CDR) PLANT AT KAKINADA
Sri K S Raju, Chairman and Managing Director of the Company declared the
Commissioning of Carbon Dioxide Recovery (CDR) Plant of 450 Metric Tonnes Per
Day capacity for commercial use in the existing Urea Production facilities.
This glittering Inauguration ceremony was graced by the Senior Officials of M/s
Mitsubishi Heavy Industries (MHI), Mitsubishi Corporation (MC), Tecnimont ICB
(TICB) and other Senior Executives of the Company and the Government Officials
in the NFCL Plant premises. A Pooja ceremony was performed prior the
Inauguration.
The Order for CDR Plant was placed on MHI, Japan and M/s Tecnimont ICB
(TICB), Mumbai on Lump Sum Turnkey Basis. The scope of MHI was for Basic Know
how and Licensing, while TICB’s scope was for EPC.
NFCL has two Units for the manufacture of Urea Fertilizer with a
capacity of 6 Lakhs MT per Annum each. Unit-I is operated on Natural Gas while
Unit-II is being operated mainly on Naphtha because of the short supply of
Natural Gas from existing sources of GAIL. Anticipating additional Natural Gas
from RIL from the KG Basin reserves, the Order of CDR Plant was placed in July
2007 with a completion schedule of 22 Months that is by May, 2009. The Project
could be completed 2 Months in advance due to the intensive efforts of TICB,
MHI and NFCL. With Commissioning of this CDR Plant, NFCL shall be recovering
450 MTPD of CO2 from the fluegas stack, thus helping the company to be eligible
for Carbon Credits through Clean Development Mechanism.
The company in order to maintain sufficient proportion of CO2 during the
manufacture of Urea and Ammonia consequent to the change over of feed stack
from naphtha to natural gas has undertaken the installation of the CDR Plant.
In fact CDR Plant forms part of Revamp / De-bottlenecking Phase-II, which is in
the process of execution. The intended De-bottlenecking schemes under Phase-II
will be in place by September 2009. The advantages of this Revamp are given
below:
The CDR Project has been installed under Clean Development Mechanism and
it shall reduce CO2 emission by 450 Metric Tonnes per Day.
The energy norm will improve to 5.500 Gcal / MT of Urea from the present
level of 5.610 Gcal / MT of Urea.
Production level will increase from both Units by about 2.0 Lakhs MT per
Annum.
Naphtha usage will be stopped, which will reduce the Subsidy burden of
the Government.
The additional Production will help to cover up the shortfall of Urea in
the Country, which otherwise, has to be imported at a huge cost.
It is worth noting that NFCL had executed another similar Revamp in the
year 2007-08, which helped to increase the Urea Production capacity by around
50,000 Metric Tonne per Annum. It was informed by NFCL sources that another
Revamp, called Phase-III is in the feasibility study stage, to further augment
the capacity of the Plants.
HYDERABAD,
NOVEMBER 6, 2007.
NFCL WINS
ENVIRONMENTAL PROTECTION AWARD FROM FERTILIZER ASSOCIATION OF INDIA,
For the third time, Nagarjuna Fertilizers and Chemicals Limited has won
the prestigious FAI Environmental Protection Award in the nitrogenous
fertilizer plants category for the year 2006-07. The Annual Award was presented
by the Union Minister for Steel, Chemicals and Fertilizers, Mr Ram Vilas Paswan
to Mr R.S Nanda, Chief Operating Officer in the presence of Mr K.S. Raju,
Chairman and Managing Director, NFCL at the inaugural function of FAI Annual
Seminar held in Delhi on December 5th, 2007. Other important dignitaries shared
the dais while received the Award were Dr J.S. Sharma, Fertilizer Secretary, Mr
U.S. Jha, Chairman, FAI and Mr R.C. Gupta, Deputy Director General, FAI.
NFCL has been honoured for outstanding contribution for the
sustainability of ecological balance at Fertilizer manufacturing Plant,
Kakinada. This Award reflects the collective effort, dedication and commitment
of associates and responsibility of Nagarjuna Fertilizers towards the society.
From its inception, NFCL adopted and maintained international industry
standards by introducing latest technologies for the treatment of waste
materials and maintaining green cover. As a result, NFCL was similarly honoured
with Environmental Protection Award from FAI in 2002 and 2005. NFCL strives to improvise
the standards on continual basis. It is the only Plant to implement the Process
Safety Management Systems (PSMS) on par with international standards.
The other senior management associates of NFCL participated in the FAI
Annual Award function were Mr P.P. Singh, Director (Technical), Mr R.D. Mall,
Vice-President (Works) and Mr Ramashray Singh, Sr. General Manager (Plant
Operations).
HYDERABAD, AUGUST
17, 2007
Clarifications from Nagarjuna Fertilizers and Chemicals Limited
regarding rumours for the benefit of shareholders and public at large.
KVK PRAGATHI RYTHU
SANMANOTSAVAM
HYDERABAD,
NOVEMBER 9, 2006
Nagarjuna Group is a dream brought into reality by Shri KVK Raju, a
first generation entrepreneur from Andhra Pradesh. Shri KVK Raju was a visionary
with firm belief in his mission to "serve society through industry".
It is this belief, which continues to be the guiding light of Nagarjuna Group
that pioneered several core sector enterprises like Fertilizers, Energy and
Petroleum.
Nagarjuna Fertilizers and Chemicals Limited (NFCL) the flagship company
of the Nagarjuna Group commissioned the first Gas based fertilizer plant in
South India at Kakinada in 1992 and currently has a capacity to produce 12 Lakh
MT of Urea per annum.
Nagarjuna entered the plant protection business in 1994 and within a
short span of time the company has grown to become one of the top five plant
protection companies in India, supplying plant protection technicals and
formulations to many Indian and International companies. Nagarjuna is
manufacturing 8 technicals and 15 formulations with a turnover of Rs 400 crores
(FY06).
Nagarjuna Group started Micro irrigation business in collaboration with
Israeli companies. Nagarjuna is shouldering the responsibility in the Andhra Pradesh
Micro Irrigation Project (APMIP) towards delivering effective water management
solutions to the farmers of Andhra Pradesh. Nagarjuna is also the first company
to introduce the concept of water soluble fertilizers in India in 1995 through
tie up with Haifa Chemicals, Israel and is the market leader in India with
sales of about 8000 Mt per annum.
As part of its mission, the group is actively involved in the Micro
nutrient segment by supplying high quality products like Mahazinc (Zinc
Monohydrate): 450 MT, Zeta (Zinc EDTA): 150 MT, Groth (Formula 4): 100 MT and
Borovin (Boron): 25 MT. Nagarjuna is also sharing the responsibility of
distributing Zinc Sulphate under the State Government's subsidy scheme to the
farming community.
Nagarjuna is currently supplying about 50% of the State's annual urea
requirement of 2 million tons. Nagarjuna has been nominated as the Lead
Fertilizer Supplier (LFS) by the Government of India in Andhra Pradesh, Orissa
and West Bengal as a coordinator between the Government and the Industry.
Nagarjuna currently markets about 1.9 million tons of urea (including imports).
Apart from the efforts of both State and Central Governments, the
fertilizer industry is also playing an important role in transferring
technology to the farmers. Nagarjuna has taken service to the farmer as a
mission since its inception in 1985 and has earned a strong brand image in
Andhra Pradesh and has since become a part of the farming community of the
state.
As a step towards providing a platform to facilitate technology transfer
to farmers KVK KRISHI VIGNANA KENDRAM (KVK) was set up at Kakinada in 1995. The
objective of the center is to transfer technology and impart knowledge on best
agricultural practices like Integrated Nutrition Management, Water Management,
Integrated Pest Management, Post-harvest Management, etc, to farmers, thereby
contributing to improving farm productivity. The centre has state-of-the art
training facilities and is headed by an experienced Agronomist with vast
technical and practical knowledge.
Since its' inception, the KVK centre has trained more than 48000 farmers
from about 416 villages covering all the districts of Andhra Pradesh. Nagarjuna
encourages the KVK trained farmers to act as a guide to his fellow farmers by sharing
their experiences through verbal communication and practice enabling knowledge
dissemination and improvement in farm productivity in a short span of time.
The KVK centre organizes training programs both On-campus and
Off-campus. In On-campus programs, the selected progressive farmers are brought
to the centre in Kakinada, travel, accommodation and food is provided at the
centre for three days. These farmers are given training on the crop / subject
of their choice by senior scientists pooled from industry, institutions and
universities. The Off-campus programs are organized by arranging visits to the
farmer fields by the Scientists. Based on the observations / specimens, the
Scientists provide advise to farmers enabling them to take immediate preventive
/ correction measures for their crops.
The company has undertaken several extension activities for the benefit
of the farming community. A wide range of technical crop films on paddy,
sugarcane, maize, cotton, chilli and benefits of Zinc usage in crops have been
developed over the past few years enabling the concept of "Seeing is
Believing". The films on Zinc, Sugarcane and Chilly have been adjudged for
awards by the Fertilizer Association of India consecutively for the past three
years. Programs like crop seminars, demonstrations, film shows, soil analysis
etc are extensively organized for transferring enabling technology to the
farmers. Tools like LCD projectors, Slide projectors, AV vans, flip charts,
crop literature etc are widely used for effective communication.
Nagarjuna is strongly committed to the well being of the farming
community of the state and will continue its efforts towards achieving this
objective.
NFCL is organizing KVK Pragathi Rythu Sanmanotsavam, to felicitate
farmers who were trained at KVK Krishi Vignana Kendram and who have played an
important role in improving farm productivity and knowledge sharing. The
programme will be held on Friday 10th November 2006 at 10 am in NFCL premises,
Kakinada, which would be graced by the Chief Minister of Andhra Pradesh,
Honourable Dr. Y S Rajasekhara Reddy and Honourable Ministers from the Centre
and the State, along with other distinguished public representatives and
officers.
NFCL FACILITY
ACHIEVES 113% UREA PRODUCTION
HYDERABAD, APRIL 18,
2006
The Kakinada facility of Nagarjuna Fertilizers and Chemicals Limited
(NFCL), has achieved a record Urea production of 113.1%, producing a total of
13.79 Lakh Metric Tonnes of Urea during 2005-06. The Plant has repeated this
phenomenal feat, producing Urea more than its capacity, for the consecutive
second year. NFCL produces Urea in two units. While the Unit one produced
7,03,645 Metric tonnes, Unit two also surpassed its capacity by producing
6,75,571 Metric tonnes making this phenomenal feat repeated during 2005-06 too.
Total capacity of the Plant is 11,94, 600 Metric tonnes.
The Plant also has achieved this record production at a very optimal
utilization of energy of 5.662 MKcal/MT of Urea against internal target of
5.670Mkcal/MT, which is already much lower than the standard Fertilizer
Industry Coordination Committee's (FICC) norm of 5.712 MKcal/MT. NFCL has one more reason to celebrate that
full production of Urea i.e. 13.79 Lakh Metric Tonnes has been dispatched to
the farmers.
Along with the production, NFCL has also done well in sales and
distribution wings. It's products, which include Mahazinc, Zinc Sulphate, Zeta,
Speciality Fertilizers besides Urea have been sold out fully during 2005-06.
NFCL WINS GAS
CONSERVATION AWARD FROM GAIL
HYDERABAD,
DECEMBER 14, 2005
Fertilizer facility of Nagarjuna Fertilizers and Chemicals Limited in
Kakinada has been selected for the ‘Award for Excellence in Natural Gas
Conservation’ in the ‘Fertilizers Sector’ category for it’s outstanding
contribution to natural gas conservation in the country during 2004-05. The
Hon’ble Union Minister for Petroleum and Natural Gas and Panchayat Raj, Shri
Mani Shankar Aiyar Presented the award to Mr. KS Raju, Chairman, Nagarjuna
Group and Mr. RD Mall, Vice-president, Plant Operations, NFCL, today in Delhi.
This annual award has been instituted by Gas Authority of India Limited
(GAIL) as a recognition of the excellent work done by the organisations in Gas
Conservation. GAIL has been conducting a nation-wide Natural Gas Conservation
Programme, meant to spread the word of conservation of this precious natural
resource. All the natural gas using industries like power, fertilizer, steel,
sponge iron, transport, glass, ceramic and petrochemicals, would be considered
for this award.
This is the 4th achievement of NFCL for it’s excellence in different
departments during 2005. These include; 5 Star rating in O H and S Audit from
British Safety Council, UK. Commendation Award in “Leadership and Excellence
Awards in Safety, Health and Environment (SHE) 2004”, by Confederation of
Indian Industry, Southern Region, Chennai. Re-certification for ISO 9001:2000
by Bureau Veritas Quality International (BVQI) for quality management systems.
And NFCL also received Environment Protection Award from Fertilizers
Association of India.
NFCL WINS THE
PRESTIGIOUS ENVIRONMENT PROTECTION AWARD FROM THE FERTILISER ASSOCIATION OF
INDIA
HYDERABAD,
DECEMBER 6, 2005
Nagarjuna Fertilizers and Chemicals Limited (NFCL) the flagship company of
the Nagarjuna Group has won the prestigious FAI (Fertiliser Association of
India) Environment Protection Award in the Nitrogenous fertilizer plants
category for the year 2004-05. NFCL had won the same award for 2001-02 also.
Going much beyond the statutory requirements of law for environment protection,
NFCL has implemented a comprehensive protection plan in its plant at Kakinada.
NFCL has been widely acknowledged for its Commitment to the betterment of
Environment and this award further adds to the long list of recognition.
NFCL has also won two more awards from FAI. A video film titled “The
Sugarcane” produced by NFCL was adjudged Runner-up in the Annual Video Film
Competition by FAI for the year 2004 – 2005. The video film has been developed
with the objective to transfer technology and to enhance the yield of sugarcane
farmers in Andhra Pradesh. For NFCL, this is the second consecutive year of
winning in this category. An article titled "From Products to Solutions -
Exploring Opportunities" published in the September 2005 Issue of the
Indian Journal of Fertilizers was awarded the Second prize in the category of
Shriram Award for Best Article in Marketing. The article was co-authored by Mr.
N Sambasiva Rao, Head - SNB Marketing and Mr. Gyanendra Narayan Pati, Asst.
Manager (Sales Planning).
The Awards were presented by Shri Ram Vilas Paswan, Hon’ble Union
Minister for Steel, Chemicals and Fertilizers, Government of India, at the
inaugural function of the FAI Golden Jubilee Celebrations and Annual Seminar in
New Delhi.
BUREAU VERITAS
QUALITY INTERNATIONAL (BVQI) AWARDS RE-CERTIFICATION OF ISO 9001 : 2000 FOR
NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED
HYDERABAD, APRIL
20TH 2005
Nagarjuna Fertilizers and Chemicals Limited (NFCL) has been re-certified
of ISO 9001:2000 by Bureau Veritas Quality International (BVQI), for its
Quality Management Systems. The Flagship Company of the Nagarjuna Group has
already been an ISO 9001: 2000 organisation since 1995. This re-certification,
which is valid up to February 2008, is only an extension of recognition for
company’s excellent quality management systems.
BVQI team has done the re-certification audit during February at NFCL
plant Kakinada. After conducting audit in Plant Operations and Area Marketing
Offices BVQI sent a certificate to NFCL in which it mentioned ”Quality
Management System of the Nagarjuna Fertilizers and Chemicals Limited has been
audited and found to be in accordance with the requirements of the standards
ISO 9001: 2000”.
BVQI is today the most widely recognized certification body in the
world, offering solutions in the key strategic fields of companies operations:
Quality, Health and Safety, Environment and Social Responsibility. It is
recognized by more than 30 national and international accreditation bodies
across the world to deliver ISO 9001 certification. As a consequence, BVQI is a
world leader with over 50,000 certified companies in 100 countries with a team
of 2,800 specially trained auditors. BVQI offers the possibility of combined
certifications to the largest range of recognized standards, bringing
consistency, optimization and efficiency.
NAGARJUNA
FERTILIZERS AND CHEMICALS LIMITED AWARDED THE PRESTIGIOUS 5 STAR RATING BY THE
BRITISH SAFETY COUNCIL, U.K.
HYDERABAD,
FEBRUARY 17, 2005
Nagarjuna Fertilizers and Chemicals Limited (NFCL), the flagship company
of the Nagarjuna Group has been awarded the highly coveted 5-Star rating by the
British Safety Council, U.K. After a detailed Health and Safety Management
System Audit conducted during the month of January 2005, the British Safety
Council has awarded an 'Excellent' rating (Score of 92.39%) to NFCL's
manufacturing facility at Kakinada. The audit covered eight areas of NFCL's
management systems leading to best practices, which include Safety
Organisation, Management Control Systems, Fire Control Systems, Measurement and
Control Systems, Workplace implementation, Verification, Best practice and
Continuous improvement.
According to Mr. R S Nanda, Director and Chief Operating Officer,
"This indeed is a testimony to our unstinted efforts to bring world class
practices of safety, health and environment to our plant at Kakinada. This
achievement further reiterates our philosophy of Serving Society through
Industry.
Though we have always been committed for having the highest levels of
health and safety management systems, such an internationally acclaimed
independent certification has reinforced our belief in following the best
practices. Striving for Excellence in every area of our operation, as a next
milestone, we would very much like to attain the 'Sword of Honour' in the
coming days."
The British Safety Council (BSC) is one of the world's leading
occupational health, safety and environmental organisations. BSC's Five Star Health
and Safety Management System Audit is a benchmark for best practices. It
provides a detailed examination of the organisation's current practices, and
gives a comprehensive report and plan for implementing, monitoring and
achieving continuous improvement. It is based on the Business Excellence Model
and goes beyond HS(G)65 and OHSAS 18001 to measure how far an organisation has
gone towards achieving best practice.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.24 |
|
|
1 |
Rs.85.93 |
|
Euro |
1 |
Rs.69.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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.