MIRA
INFORM REPORT
|
Report Date : |
28.06.2010 |
IDENTIFICATION DETAILS
|
Name : |
NAVIN FLUORINE INTERNATIONAL LIMITED |
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Registered
Office : |
2nd Floor, Sunteck Centre, |
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Country : |
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|
Financials (as
on) : |
31.03.2012 |
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|
Date of
Incorporation : |
25.06.1998 |
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Com. Reg. No.: |
11-115499 |
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Capital
Investment / Paid-up Capital : |
Rs.97.568
Millions |
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|
|
CIN No.: [Company Identification
No.] |
L24110MH1998PLC115499 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP14428B |
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PAN No.: [Permanent Account No.] |
AABCP0464B |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturing and Selling of Chemicals. |
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|
No. of Employees
: |
571 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 19330000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having good track.
Financials performance of the company is good. Trade relations are reported
as fair. Business is active. Payments are reported to be regular 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 : |
2nd Floor, Sunteck Centre, |
|
Tel. No.: |
91-22-66509999/ 24043300 |
|
Fax No.: |
91-22-66509800 |
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E-Mail : |
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Website : |
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Corporate Office : |
Mafatlal House, Backbay
Reclamation, Mumbai - 400020, |
|
Tel. No.: |
91-22-56357611/22026944 |
|
Fax No.: |
91-22-56357633 |
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|
|
|
Factory 1 : |
P. O. Bhestan, Udhana –
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|
Tel. No.: |
91-261-2890325 |
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Fax No.: |
91-261-2890288 |
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E-Mail : |
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Factory 2 : |
New Industrial Area, |
|
E-Mail : |
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International Office : |
Global Head of Business Development – Crams |
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Tel. No.: |
1732-377-3362 |
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Fax No.: |
1732-377-3317 |
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E-mail : |
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|
Investor Relation Centre : |
Ř
912, Raheja Centre, Free Tel. No.: 91-22-66134700 Fax No.: 91-22-22825484 Ř
Office No.416-420, 4th Floor,
Opposite Sanyas Ashram, Tel No.: 91-79-26582381 / 84 |
|
Email: |
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|
Branches : |
Located At:
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DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Hrishikesh A. Mafatlal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. T. M.M. Nambiar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Pradip N. Kapadia |
|
Designation : |
Director |
|
Qualification : |
B.A, LLB |
|
Date of Appointment : |
21.01.2003 |
|
|
|
|
Name : |
Mr. Sunil S. Lalbhai |
|
Designation : |
Director |
|
Qualification |
Masters in Chemistry, Economy, Planning and Policy |
|
|
|
|
Name : |
Mr. S.M. Kulkarni |
|
Designation : |
Director |
|
Qualification : |
B.E. |
|
Date of Appointment : |
19.10.2006 |
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|
|
|
|
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|
Name : |
Mr. R. Sankaran |
|
Designation : |
Director |
|
Qualification : |
Masters in Economics |
|
Date of Appointment : |
30.03.2007 |
|
|
|
|
Name : |
Mr. V. P. Mafatlal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.G. Mankad |
|
Designation : |
Director |
|
Date of Appointment : |
29.04.2011 |
|
|
|
|
Name : |
Mr. S.S. Khanolkar |
|
Designation : |
Managing Director |
|
Date of Appointment : |
01.01.2011 |
|
|
|
|
Name : |
Mr. Atul Kumar Srivastava |
|
Designation : |
Finance Director |
KEY EXECUTIVES
|
Name : |
Mr. N.B. Mankad |
|
Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Names of Shareholders |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
487,002 |
4.99 |
|
|
3,222,912 |
33.02 |
|
|
|
|
|
|
65,145 |
0.67 |
|
|
3,775,059 |
38.67 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3,775,059 |
38.67 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
299,869 |
3.07 |
|
|
22,423 |
0.23 |
|
|
85,741 |
0.88 |
|
|
501,842 |
5.14 |
|
|
909,875 |
9.32 |
|
|
|
|
|
|
817,175 |
8.37 |
|
|
|
|
|
|
3,499,090 |
35.85 |
|
|
640,350 |
6.56 |
|
|
|
|
|
|
119,217 |
1.22 |
|
|
331 |
- |
|
|
5,076,163 |
52.00 |
|
Total Public shareholding (B) |
5,986,038 |
61.33 |
|
Total (A)+(B) |
9,761,097 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
9,761,097 |
- |
(1) Indian
Individuals / Hindu Undivided Family
TrustsBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Chemicals. |
PRODUCTION STATUS AS ON 31.03.2012
|
Particulars |
Unit |
Actual
Production |
|
Synthetic Cryolite, Aluminium Flooride and Fluorocarbon
Gases |
MT |
8823 |
|
Miscellaneous Fluorides |
MT |
20244 |
|
Total |
|
29067 |
GENERAL INFORMATION
|
No. of Employees : |
571 (Approximately) |
||||||||||||
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Bankers : |
v
State Bank of v
Axis Bank Limited v
HDFC Bank Limited |
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||||||||||||
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Facilities : |
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Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
Messrs Deloitte Haskins and Sells Chartered Accountant |
|
|
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|
Associates/Subsidiaries : |
Ř
Sulakshna Securities Limited Ř
Manchester Organics Limited (w.e.f.04.05.2011) Ř
Urvija Associates (A Partnership firm where the
company is a majority partner) Ř
Mafatlal Denim Limited |
|
|
|
|
Enterprises over which key management personnel and their relatives
are able to exercise significant influence: |
Ř
Mafatlal Industries Limited Ř
Mafatlal Fabrics Private Limited Ř
NOCIL Limited Ř
Sananda Industrial Machinery Limited Ř
Seth Navinchandra Mafatlal Foundation Trust |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9761097 |
Equity Shares |
Rs.10/- each |
Rs.97.611
Millions |
|
|
Less: Call in arrears |
|
Rs.0.042
Million |
|
|
|
|
Rs.97.569 Millions |
Note:
Pursuant to the
decision of the Board of Directors of the Company taken in its meeting dated 24th
September, 2010, the Company bought back 338,792 equity shares of nominal value
of Rs.10/- each at a price of Rs. 400/- per share for an aggregate value of
Rs.135.517 millions during the previous year under Section 77A of the Companies
Act, 1956 through tender offer by utilising the Securities premium account to
the extent of Rs.132.129 millions. The Capital redemption reserve was created
out of General reserve for Rs.3.388 millions being the nominal value of shares
thus bought back. All the equity shares bought back were extinguished by 5th
March, 2011.
Out of the rights
issue made in 2004-05, 109 equity shares could not be offered on rights basis
due to the non-availability of details of beneficial holders from depositories.
The same are kept in abeyance.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
97.569 |
97.568 |
100.955 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4736.151 |
3220.468 |
2808.843 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4833.720 |
3318.036 |
2909.798 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
933.439 |
490.740 |
113.564 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
933.439 |
490.740 |
113.564 |
|
|
DEFERRED TAX LIABILITIES |
286.392 |
191.397 |
209.983 |
|
|
|
|
|
|
|
|
TOTAL |
6053.551 |
4000.173 |
3233.345 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2364.510 |
1726.752 |
1517.857 |
|
|
Capital work-in-progress |
52.304 |
322.369 |
261.488 |
|
|
|
|
|
|
|
|
INVESTMENT |
2049.420 |
477.606 |
8.456 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
840.161
|
551.020 |
471.781 |
|
|
Sundry Debtors |
623.935
|
577.950 |
389.625 |
|
|
Cash & Bank Balances |
1050.218
|
174.117 |
804.657 |
|
|
Other Current Assets |
50.148
|
15.651 |
0.000 |
|
|
Loans & Advances |
571.308
|
1291.237 |
1139.260 |
|
Total
Current Assets |
3135.770
|
2609.975 |
2805.323 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
451.537
|
552.364
|
1099.798
|
|
|
Other Current Liabilities |
303.237
|
406.825 |
142.108 |
|
|
Provisions |
793.680
|
177.340 |
117.873 |
|
Total
Current Liabilities |
1548.454
|
1136.529 |
1359.779 |
|
|
Net Current Assets |
1587.317
|
1473.446 |
1445.544 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6053.551 |
4000.173 |
3233.345 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7038.585 |
4307.404 |
4293.251 |
|
|
|
Other Income |
910.053 |
103.874 |
79.031 |
|
|
|
TOTAL (A) |
7948.638 |
4411.278 |
4372.282 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of Stock-in-trade |
55.709 |
32.182 |
26.178 |
|
|
|
Cost of Material Consumed |
2519.651 |
1703.284 |
0.000 |
|
|
|
Employee benefits expense |
408.757 |
297.891 |
0.000 |
|
|
|
Manufacturing and Other Expenses |
1664.788 |
1165.992 |
2932.811 |
|
|
|
Excise Duty |
0.000 |
0.000 |
2.205 |
|
|
|
Changes in inventories of finished goods, work in progress and
stock-in-trade |
(107.379) |
(19.326) |
52.181 |
|
|
|
TOTAL (B) |
4541.526 |
3180.023 |
3013.375 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3407.112 |
1231.255 |
1358.907 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
35.419 |
35.958 |
24.937 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3371.693 |
1195.297 |
133.397 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
177.342 |
135.445 |
110.684 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3194.351 |
1059.852 |
1223.286 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
881.995 |
343.414 |
479.671 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
2312.356 |
716.438 |
743.615 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1322.309 |
850.210 |
354.474 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
232.000 |
716.50 |
74.400 |
|
|
|
Interim Dividend |
83.000 |
65.649 |
65.649 |
|
|
|
Proposed Final Dividend |
63.400 |
82.969 |
75.749 |
|
|
|
Proposed Special Dividend |
585.700 |
0.000 |
0.000 |
|
|
|
Corporate Dividend Tax |
118.800 |
240.71 |
24.031 |
|
|
|
Transferred to debenture redemption
reserve |
0.000 |
0.000 |
8.050 |
|
|
BALANCE CARRIED
TO THE B/S |
2551.765 |
1322.309 |
850.210 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4153.879 |
2088.392 |
2452.150 |
|
|
|
Contract Research Income |
8.633 |
2.128 |
1.512 |
|
|
TOTAL EARNINGS |
4162.512 |
2090.520 |
2453.662 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1879.698 |
1072.059 |
953.709 |
|
|
|
Stores & Spares |
7.788 |
1.530 |
0.064 |
|
|
|
Capital Goods |
31.698 |
9.466 |
6.869 |
|
|
TOTAL IMPORTS |
1919.184 |
1083.055 |
960.642 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
236.90 |
71.11 |
73.63 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
29.09
|
16.24 |
17.01 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
45.38
|
24.60 |
28.49 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
78.50
|
34.18 |
41.91 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.66
|
0.32 |
0.42 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.51
|
0.49 |
0.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.02
|
2.30 |
2.06 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
-- |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
CORPORATE
INFORMATION:
The company is a
public limited company domiciled in
YEAR IN RETROSPECT:
Revenue from
operations increased by 63% from Rs.4307.400 millions to Rs.7038.600 millions
during the year. Income from sale of carbon credits increased from Rs.783.300
millions to Rs.2519.000 millions and the revenue from rest of the business
increased from Rs.3524.100 millions to Rs.4519.600 millions. Profit before tax
increased by 307% from Rs.1059.900 millions to Rs.3246.700 millions and profit
after tax grew by 328% from Rs.716.400 millions to Rs.2312.400 millions.
Fiscal 2012 has
been significant in many ways;
Ř The Company
achieved its highest ever sales and profits during the year.
Ř Money advanced to
Mafatlal Industries Limited (MIL) and/or the group companies to support MIL’s
restructuring have been received back by the Company, including interest
wherever applicable, except Rs.300.000 millions which remained invested as on
31st March 2012 in the fully redeemable noncumulative preference shares of MIL
and which is expected to be redeemed soon.
As reported
earlier, the Company invested in fully redeemable non-cumulative preference
shares of Mafatlal Industries Limited in the year 2004-05 pursuant to the order
of the BIFR in the matter of Mafatlal Industries Limited’s financial restructuring.
During the year 2010-11, Mafatlal Industries Limited’s net worth turned
positive and it was out of the purview of BIFR. During the year, Mafatlal
Industries Limited redeemed such preference shares worth Rs.300.000 millions
(face value) as they could leverage the idle assets and improve liquidity. A
provision of Rs.594.000 millions made in an earlier year towards diminution in
the value of investments in Mafatlal Industries Limited preference shares has
been written back as no longer required. Similarly, provisions made for
Rs.155.200 millions towards diminution in value of investments made in Mafatlal
Denim Limited has also been written back as no longer required. On these two
counts, the aggregate amounts of Rs.749.300 millions have been written back to
the Profit and Loss Account of the Company.
2011-12 started on
a high with strong demand pull from the FMCG, pharma, agro and chemical
industries, both in and outside of
In India, the weakening
of the rupee put enormous inflationary pressures on the economy in the second
half of the current year forcing the government to take fiscal measures which
stagnated public spending, reduced capital and consumer spending which
eventually resulted into weakening of overall market demand for the final
products of the Company’s customers. This in turn adversely impacted the
Company’s volumes and prices in the second half of the year.
The Indian rupee
vis-ŕ-vis the
Since December
2010, the issuance of carbon credits by the United Nations Framework Convention
on Climate Change (UNFCCC) got regularised and no inordinate delays have been
faced by the Company in the issuance of its carbon credits. However, as the
financial crisis deepened and prolonged in the European Union, the primary
market for carbon credits, the Certified Emission Reduction (CER) prices took a
sharp hit coming down from Euro 12 per CER to a level of Euro 4 by December. No
near term price correction is expected though the Company will be able to sell
its full quantity of carbon credits generated till December 2012. It is now
certain that the carbon credits generated by the Company, classified as CERs
from industrial gases, will not be accepted as a carbon off-set instrument
beyond May 2013 by the European Union Emission Trading Scheme, thereby severely
restricting their marketability and value proposition.
The Company took
several long-term, futuristic steps in the past three years by making sizable
investments in:
Ř Research and
Development and pilot plant
Ř Multi-product
plant at Surat Contract Research Organisation at
Ř Contract Research
and Manufacturing Services (CRAMS) facility at Dewas
Following these
significant investments and commissioning of the facilities, the Company is now
ready to meet changing customer needs and provide flexible product mix from the
enhanced process capabilities. This will also enhance the product pipeline for
future growth of the Company.
On the 3rd May
2011, the Company made a strategic investment by taking a 51% stake in a
research company called Manchester Organics Limited (MOL), in the United
Kingdom to derive value from their fluorine Research and Development which can eventually lead to scale-up
operations in India. This will enhance presence of the Company among the
Research and Development fraternities and customers in Europe and the
The company is
alert to its responsibilities in health, safety and environmental management.
The Company makes sizable investments in HSE year on year.
The rating of the
company has now been upgraded to ‘CARE AA-‘(indicating high degree of safety
regarding timely servicing of financial obligations and very low credit risk)
for borrowings with a tenure of more than one year and fund-based facilities.
The rating for short-term facilities (less than one year) has been maintained
at ‘CARE A+’ (indicating very strong degree of safety regarding timely
servicing of financial obligations and lowest credit risk) for its non-fund
based facilities.
During the year
the Company acquired land from the Gujarat Industrial Development Corporation
at Dahej for a consideration of Rs.259.600 millions which also includes some
basic land development costs. This land will be used for the future expansion
plans of the Company which are currently under various stages of consideration.
During the year,
the Company signed a Memorandum of Understanding (MOU) with Gujarat Mineral
Development
Corporation (GMDC)
and Gujarat Fluorochemicals Limited (GFL) to enter into a Joint Venture for the
beneficiation of fluorspar ore to be supplied by GMDC to ensure long term
supply of fluorspar, which is a key raw material for the Company. It is
expected to come on stream during the later part of 2012-13.
The strong cash
flows during the year have been preserved and deployed in high yield, low risk
financial instruments and bank fixed deposits.
During the year,
residual debentures worth Rs.14.000 millions were repaid and as on 31st March 2012
the Company has no long-term borrowing.
CONSERVATION OF ENERGY:
A. Energy Conservation measures taken:
Ř Achieved power
savings by choosing better technology Compressor
Ř Right sizing of
motors resulted in power savings
Ř Modification of
the design of distillation column to achieve higher separation efficiency,
hence reducing the steam consumption.
Ř Replacement of old
motors with energy efficient motors
Ř De-scaling of
cooling water circuits
Ř Side stream
filters to avoid sedimentation and hence scaling in cooling water circuits
B. Additional investment and proposal, if any being
implemented for reduction in consumption of energy:
Ř To optimize the
steam distribution network, so as to get minimum pressure drops in supply
lines.
Ř Condensate recycle
scheme for waste heat boiler to generate additional steam
Ř Optimization of
cooling towers
Ř Optimization of
brine compressor network.
Ř Waste heat
recovery in kiln heating system to save additional natural gas.
Ř Continuation of
last years change, i.e. delta mode replaced by star mode.
Ř Replacement of
mal-functioning steam traps with more efficient steam traps
C. Impact of the measures at (A) and (B) above, for
the reduction of energy consumption and consequent impact on the cost of
production of goods
Ř Power requirement
in certain products has come down to 2600 KWH/MT from 3000 KWH/MT
Ř Cooling tower
optimization will give a chance to save approx 200 HP of power consumption by
CW pumps
Ř Compressor circuit
optimization will allow to switch off minimum one chilling compressor and
maximum of 2.
Ř Steam condensate
recycle will give us additional steam of 400 kg /hr (Approximately).
Ř By shortening path
of steam, they can reduce the pressure drops in the line and will be in
position to provide 5 kg steam required to certain reactions.
MANAGEMENT
DISCUSSION AND ANALYSIS:
ECONOMIC OVERVIEW:
In 2011, the
global economy grew 3.8% (5.2% in 2010), while emerging economies grew 6.2%
(7.3% in 2010) and advanced economies grew 1.6% (3.2% in 2010). The Indian
economy growth is estimated at 6.9% in 2011-12 compared with 8.4% in the
preceding two years on account of a weakening global economy, lower industrial
growth and reforms slowdown. In
INDUSTRY OVERVIEW:
The
hindered growth.
The HFC market, which grew considerably in the decade 2001- 2011, will continue
its strong advances as HFCs replace HCFCs in the developing world. However,
concerns over the global warming potential of HFCs will limit demand
particularly in
OUTLOOK:
Global annual
demand for fluorine-containing chemicals is forecast to rise 3.9% to 3.5 mn MT
in 2016, valued at USD 19.7 bn. Gains will be fuelled by an increasing
production of refrigeration and cooling equipment as well as an acceleration in
primary aluminium output. In the fluorocarbon segment, demand will rise
slightly below the overall fluorochemicals average through 2016. Due to the
Montreal Protocol requirements, restrictions for developing countries will
begin to take effect in 2015. The Asia Pacific region will continue to be the
largest market for fluorochemicals, accounting for over half of the worldwide
demand in 2016 and will also grow at a fast pace. The US, Western Europe and
Japan will account for a shrinking share of the world fluorochemicals market
through 2016, although they witnessed an increase in demand following the
decline of the 2006-2011 period.
GROWTH DRIVERS:
Pharmaceuticals Market:
The Indian
pharmaceuticals market continued to grow at around 15%, registering a turnover
of Rs.596210.000 millions in 2011-12. Pharma exports grew to USD 10.5 bn in
2011-12 compared with USD 6 bn in 2006-07, recording a 16% CAGR. IMS Health
estimates that pharmerging markets will grow 14-17% through 2014, while major
developed markets will grow only 3-6%. Although the
Agrochemicals Market:
Agriculture
accounted for 13.9% of the countries GDP in 2011- 12. Crop protection chemicals
account for around 2% of the total chemicals market in
Automobiles, Air-Conditioner and Refrigerator
Market:
The Automotive
sector sales have been rising at an impressive 17% CAGR over the last five
years and is slated to grow by 10 to 12% in 2012-13 on the expanded base.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2012 Rs. In Millions |
|
a.) Excise matters disputed in appeal |
|
|
These relate to MODVAT on capital purchases (pending before the
Assistant Commissioner) and permit fee on purchase of alcohol (pending before
the High Court) |
15.820 |
|
b) Claims against the Company not acknowledged as debts |
|
|
Labour matters involving issues like regularization of employment,
termination of employment, compensation against severance, etc. |
2.265 |
|
c) Sales-tax matters disputed in appeal |
|
|
These relate to classification of goods and consequent dispute on the
rates of sales-tax (pending at various stages from Assistant Commissioner to
High Court) |
20.196 |
|
d) Income tax matters disputed in appeal |
|
|
In all the above matters, the Company is hopeful of succeeding and as
such does not expect any significant liability to crystallize. |
62.917 |
FIXED ASSETS:
Ř
Ř
Ř
Buildings
Ř
Plant and Machinery
Ř
Furniture and Fixtures
Ř
Vehicles
Ř
Office Equipments
AS PER WEBSITE:
WEBSITE DETAILS:
HISTORY
Pursuant to the Rehabilitation Scheme of The Mafatlal Industries Limited, the Chemicals Division of the company viz., Subject Bhestan, Gujarat and Navin Chemical Enterprises (NCE), Dewas, Madhya Pradesh have been demerged and vested in subject company with effect form 1st March, 2002 as a going concern along with assets and liabilities.
MIL was executing a project in
Persuant to MIL’s SS, Income Tax Department to grant exemption from compliance of conditions contained in Section 2 (19AA) of the Income Tax Act, 1961, with regard to demerger of Chemical Division. Accordingly, as per the provisions of Section 72A of the Income Tax Act, 1961, unabsorbed depreciation, aggregating to Rs.327.903 millions, retable to the Chemical Division of MIL has been set off against taxable income of the company and the balance unabsorbed depreciation, aggregating to Rs.83.365 millions, was carried forward for the purpose of Income Tax. Consequently, there was no taxable income for the period. Deferred tax asset had been recongnized in respect of ubabsorbed depreciation carried forward. The company, based on projections, expected sufficient future taxable income to utilize this deferred tax assets.
PROFILE:
Subject belongs to a reputed industrial house of Arvind
Mafatlal Group in
Subject initiated the CDM project to reduce green house gas
HCFC 23 in June 2006 with Ineos Fluor as technology partners an
Subject
has Quality system accreditation with ISO 9001, Environment Management System
accreditation with ISO 14001, World class safety standards 5 star rating by
British Safety Council and OHSAS-18001 certified entity.
The company has ability to produce some of the niche organofluorine
molecules. It offers a diversified portfolio of advanced fluorine derivatives
to the world with wide ranging applications in pharma, agro and petrochemicals.
Subject has an impressive clientele consisting of several fortune 500 companies which include five of the top ten global crop protection companies and three of the top ten global chemical companies.
A positive mind set, holistic approach and thorough professionalism forms the
core of the team named Navin Fluorine. Quality is what they aspire for in every
endeavour of them. Subject strict vigil on the environmental norms and safety
measures at every step of the manufacturing process has resulted in elevating
subject as an entity to rely upon without inhibition.
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.57.21 |
|
|
1 |
Rs.89.42 |
|
Euro |
1 |
Rs.71.46 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPTP |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
67 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.