MIRA INFORM REPORT

 

 

Report Date :

27.03.2012

 

IDENTIFICATION DETAILS

 

Name :

HALDIA PETROCHEMICALS LIMITED

 

 

Registered Office :

1 Auckland Place Kolkata – 700017, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

16.09.1985

 

 

Com. Reg. No.:

039487

 

 

Capital Investment / Paid-up Capital :

Rs.18309.980 Millions

 

 

CIN No.:

[Company Identification No.]

U23209WB1985SGC039487

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALH00472D

 

 

Legal Form :

A Closely Held Public Limited Liability Company.

 

 

Line of Business :

Manufacturer and Exporter of Petrochemical Polymers Products.

 

 

No. of Employees :

1000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (72)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

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

 

 

Maximum Credit Limit :

USD 100000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Though the company was incorporated in the year 1985, commercial activities started during the year 1998-99 only. The company had incurred some losses during the first year of its production. The management of the company consists of highly qualified and respectable personnel. Their trade relations are fair.  Payments are usually correct and as per commitments. In view of strong promoters, the company can be considered normal for business dealings at usual trade terms and conditions.

 

The company can be regarded as a promising business partner in a long-run. Efforts are continued for latest Annual Reports and if available we shall scan and lend it to you.

 

NOTES:

 

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

 

 

 

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION PARTED BY

 

Name :

M. Deepak

Designation :

Chief Manager

Contact No.:

91-9836944004

 

 

LOCATIONS

 

Registered/ Eastern Regional/ Corporate Office:

1 Auckland Place Kolkata – 700017, West Bengal, India

Tel. No.:

91-33-22831640/ 43/ 45 / 471024 / 22831637

Fax No.:

91-33-22802390/ 1654

E-Mail :

aloke.chattopadhyay@hpl.co.in

corp@hpl.co.in

ero@hpl.co.in

Websites:

www.haldiapetrochemicals.com

Location:

Owned

Factory 2 :

Post Box 12, P.O Durgachak, District Purba Mednipur – 721602, West Bengal, India 

Tel. No.:

91-3224-274007/ 877/ 876/ 882/ 384

Fax No.:

91-3224-274420

E-Mail :

plant@hpl.co.in

 

 

Research Developments Center  :

54 / A/1 Block – DN, sector 5, Salt Lake, Kolkata – 700091, West Bengal, India

Tel. No.:

91-33-23673491/ 3492/ 3061/ 3062/ 3495/

91-3224-274007 / 877/876/882/384

Fax No.:

91-33-23679890/ 22471361/ 1102

E-Mail :

ARDC@hpl.co.in

marketing@hpl.co.in

 

 

Southern Regional Office:

2A Royal Court , 41 Venkata Narayana Road, T Nagar, Chennai – 600 017, India

Tel. No.:

91-44-24341003 / 9929 / 8592

Fax No.:

91-44-2434 1401

E-Mail :

sro@hpl.co.in

 

 

Northern Regional Office:

903, Ansal Bhawan, 16 Kasturba Gandhi Marg, New Delhi – 110 001

Tel. No.:

91-11-23315606 / 5626  / 2372 1348 / 3176

Fax No.:

91-11-2372 3327

E-Mail :

nro@hpl.co.in

 

 

Western  Regional Office

106-108 Kesava Building, Bandra – Kurla complex, Bandra (East), Mumbai – 400 051

Tel. No.:

91-22-26590653 / 113/ 219 /318

Fax No.:

91-22-2659 0114

E-Mail :

wro@hpl.co.in

 

 

Area Sales Office:

Indore office:

18, Old Palasia 102C, Kanchan Sagar, A.B. Road, Indore – 452001

Tel No: 91-731-2547452 / 5066979
Mobile No:91-9821026699

Fax No:91-731-5066979

Email: asoindo@hpl.co.in

 

Hyderabad Office:

Mega Sri Classics, 301, 4th Floor, Model House Lane, Dwarkapuri Colony, Punjagutta, Hyderabad – 500

Tel no: 91-40-55633072

 Fax No: 91-40-23358302

Email: asohyd@hpl.co.in

 

Kanpur Office:

6, Prabhu Sadbhavana, 9/56 Arya Nagar, Kanpur – 208002

Tel no: 91-512-255 6863
Mobile No–91-9839103055

Fax no: 91-512 -2555089

Email: asokan@hpl.co.in

 

Jaipur  Office:

225, City Centre, S.C. Road, Jaipur – 302001

Tel no: 91-141-237 6910
Mobile No: 91-9829051882

Fax No: 91-141-2367910

Email: asojai@hpl.co.in

 

Ludhiana Office:

Flat - B, 5th Floor, Noble Enclave, Bhaiwala Chawk, Ferozepur Road, Ludhiana – 141001

Tel no: 91-161- 403853 / 315136
Mobile no:91-9814161096

Fax no: 91-161- 403853

Email: asoludh@hpl.co.in

 

Ahmedabad Office:

B - 504, Suhavan Apartments,  Opp. Judges Bunglow Road, Near Rudra Square,  Vastrapur, Bodak-Deb,  Ahmedabad – 380015

Tel no: 91-79-6870594 / 6871508
Mobile No:–91-9825604342

 

Durgapur Office:

C/O. Adda Office, City Centre, 1st Floor,  Durgapur – 713216

Tel No:91-343-546815/6716, Extn. 232

 

 

DIRECTORS

 

AS ON 30.09.2009

 

Name :

Mr. Tarun Das

Designation :

Chairman cum Managing Director

Address :

102, B Beverly Park, Mehraul Gurgoan, Haryana, India.

Date of Birth/Age :

16.02.1939

Date of Appointment :

17.10.2001

Election comm. Identity Card No.

ADKPD9961C

 

 

Name :

Mr Partha S Bhattacharyya

Designation :

Managing Director

 

 

Name :

Mr. Purnendu Chatterjee

Designation :

Director

Address :

1107, Fifth Avenue, New York, USA.

Date of Birth/Age :

09.01.1950

Date of Appointment :

30.03.1994

 

 

Name :

Mr. Subhasendu Chatterjee

Designation :

Director

Address :

L – 3 Kailash Colony, Second Floor, New Delhi-110048, India.

Date of Birth/Age :

13.07.1947

Date of Appointment :

04.05.1999

Election comm. Identity Card No.

AACPC6148F

 

 

Name :

Mr. Rangarajan Vasudevan (Retd.)

Designation :

Director

Address :

E – 262, Greater Kailash Part, New Delhi-110048

Date of Birth/Age :

14.06.1937

Date of Appointment :

25.07.1997

Election comm. Identity Card No.

AAAPV0400H

 

 

Name :

Mr. Subrata Gupta

Designation :

Director

Address :

CF,90 Saltlake City, Sector-1, Kolkata, West Bengal-700054, India.

Date of Birth/Age :

31.05.1965

Date of Appointment :

18.12.2007

 

 

Name :

Mr. Bhaskar Khulbe

Designation :

Director

Address :

A-285, Sector 47, Noida, Uttar Pradesh, India.

Date of Birth/Age :

20.03.1959

Date of Appointment :

22.08.2009

 

 

Name :

Mr. Vijay Chaudhry

Designation :

Director

Address :

6126- A Ramshorn Drive, Mclean, Virginia, USA-22101

Date of Birth/Age :

19.06.1945

Date of Appointment :

22.08.2009

 

 

Name :

Mr. Dipankar Mukhopadhyay,IAS

Designation :

Director

 

 

Name :

Mr. Iswar C. Agasti

Designation :

Director

 

 

Name :

Mr. T K Ray

Designation :

Director

 

 

Name :

Mr Jamshyd N Godrej

Designation :

Director

 

 

Name :

Mr Sushil Muhnot

Designation :

Director

 

 

Name :

Mr.S Roy Chowdhury

Designation :

Director

 

 

Name :

Ms Ramni Nirula

Designation :

Director

 

 

KEY EXECUTIVES

 

AUDIT COMMITTEE

 

 

 

Name :

Mr. S Muhnot

Designation :

Chairman

 

 

Name :

Mr Vijay K Chaudhry
Mr Dipankar Mukhopadhyay
Mr T K Ray
Mr S Roy Chowdhury – Managing Director

 

 

PROJECT REVIEW COMMITTEE

 

 

 

Name :

Mr. J. N. Godrej

Designation :

Chairman

 

 

Name :

Mr S Chatterjee
Dr Subrata Gupta
Mr Sushil Muhnot
Ms Ramni Nirula
Mr S Roy Chowdhury– Managing Director

 

 

BORROWINGS AND RISK MANAGEMENT COMMITTEE

 

 

 

Name :

Mr. S Roy Chowdhury

Designation :

Chairman

 

 

Name :

Mr T K Ray
Mr S Muhnot
Mr Dipankar Mukhopadhyay
Mr Vijay K Chaudhry – Managing Director

 

 

PERSONNEL COMMITTEE

 

 

 

Name :

Mr. Tarun Das

Designation :

Chairman

 

 

Name :

Dr P Chatterjee
Mr J N Godrej
Mr Dipankar Mukhopadhyay– Managing Director

 

 

HSE COMMITTEE

 

 

 

Name :

Mr Ishwar C Agasti

Designation :

Chairman

 

 

Name :

Mr S Chatterjee
Mr S Roy Chowdhury
Dr Subrata Gupta
Ms Ramni Nirula - Managing Director

 

 

NAPHTHA PURCHASE COMMITTEE

 

 

 

Name :

Ms. Ramini Nirula

Designation :

Chairman

 

 

Name :

Mr S Chatterjee
Dr Subrata Gupta
Mr Ishwar C Agasti - Managing Director

 

 

COMPENSATION COMMITTEE

 

 

 

Name :

Mr. Sushil Muhnot

Designation :

Chairman

 

 

Name :

Mr Bhaskar Khulbe
Mr R Vasudevan - Managing Director

 

 

COMMITTEE FOR SHARE TRANSFERS

 

 

 

Name :

Mr Ishwar C Agasti

Designation :

Chairman

 

 

Name :

Mr Bhaskar Khulbe
Mr Vijay K Chaudhry
Mr T K Ray - Managing Director

 

 

EMPOWERED COMMITTEE FOR CDR

 

 

 

Name :

Dr. P. Chatterjee

Designation :

Chairman

 

 

Name :

Mr Dipankar Mukhopadhyay
Mr Bhaskar Khulbe
Mr Vijay K Chaudhry- Managing Director

 

 

Name:

Mr. Rabin Mukhopadhyay

Designation:

Head – Plant, Projects and Executive Vice President

 

 

Name:

Mr. Aloke. Kr. Chattopadhyay

Designation:

Head – Legal and Vice President and Dy Co. Secy.

 

 

Name:

Mr. Anjan Bose

Designation:

CIO, Head-HRA and Senior Vice President

 

 

Name:

Mr. Ashok Kr. Ghosh

Designation:

Head-  Manufacturing, Deputy Head – Plant and Vice President

 

 

Name:

Mr. Durga Sankar Chakrabarti

Designation:

Head – Finance and Accounts, Senior Vice President and CFO

 

 

Name:

Mr. Gaur Hari Guchhait

Designation:

Head – Projects Planning and Vice President

 

 

Name:

Mr. Ujjal De

Designation:

Head – Marketing (Polymers), Customer Services, Business Development and Senior Vice President

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2009

 

Names of Shareholders

 

No. of Shares

West Bengal Industrial Development Corporation Limited

674999996

 Indian Oil Corporation Limited)

150000000

Tata Motors Limited

22499999

Tata Power Company Limited

22499999

Chaterjee Petrochemicals Limited

432852148

Winsor India Investment Company Limited.

127400000

India Trade (Mauritius) Limited

107141852

Vinod Krishna Chaudhry

1000000

Shapun Chaudhry

1000000

Vishal Chaudhry

1000000

Ayesha Chaudhry

1000000

Trade Pre Lal

9879.0

AKM Systems Private Limited

2000000

Saroj Ramesh Patel

413640

Vijay Diamond Pre Limited

2836000

Lalpet Govindarajan Devaki

5000

Raogarapan Vasudevan

50000

Prithvi Raj Khanna

20000

IISBC Global Custody Nominee (UK, Limited)

732247

Viresh Mathar

49532

Baldev Raj Bathra

4000

Deepak Kumar

4999

Jyoti Bhanor

2000

Simon b Choksa(j/w Hemal Shrenik choksa)

1000000

Anil Ritesh Kotharij/w Ritesh Rupen Kothari

1000000

Rupa Sumar Mehta

1400000

Purvi Ajesh Mehta

400000

Bharti Shrenik Choksi

400000

Kokila Navan Chandra Mehta

1000000

Sandhya Rupen Kothari

400000

Ankit Dilip Kumar Mehta

1000000

Kalpana Dilip Kumar Mehta

400000

Radhika Govind Rayan

350000

Swadesh Chateerjee

200000

Dr. Devansh Bhattacharaya j/w Archana Bhattacharya

5000

Dr. Devansh Bhattacharaya j/w Bharati Bhattacharya

5000

Radhika Rayan

350000

 

 

AS ON: 30.09.2009

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

43.389

Bodies corporate

 

3.013

Govt.Companies

 

52.887

Directors or relatives of directors

 

0.003

Other top fifty shareholders

 

0.708

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Petrochemical Polymers Products.

 

 

Exports :

 

Products :

Petrochemicals Polymers

Countries :

European Countries 

 

 

Imports :

 

Products :

Raw Materials

Countries :

European Countries 

 

 

Terms :

 

Selling :

L/C, Cash and Credit (30 Days)

 

 

Purchasing :

L/C, Cash and Credit (30 Days)

 

 

GENERAL INFORMATION

 

Customers :

·         Wholesalers

·         End Users

 

 

No. of Employees :

1000 (Approximately)

 

 

Bankers :

·         Allahabad Bank

·         Canara Bank

·         Dena Bank

·         Central Bank of India

·         State Bank of India

·         Punjab National Bank

·         Union Bank of India

·         United Bank State Bank of Hyderabad

·         UCO Bank

·         Indian Overseas Bank

·         The Karur Vysya Bank

·         Bank of India

·         IDBI Bank

·         ICICI Bank Limited

·         Standard Chartered Bank

·         Vijaya Bank

·         Axis Bank Limited

·         State Bank of Mysore

·         State Bank of Patiala

·         State Bank of Bikaner and Jaipur

 

 

Facilities :

Secured Loans

31.03.2007

(Rs. In Millions)

 

 

Rupee Term Loans (RTL)

 

Banks

997.590

Financial Institutions

4359.480

Others

32.750

 

 

Foreign Currency Term Loans (FCTL)

 

Financial Institutions (FI)

2471.110

 

 

External Commercial Borrowings (ECB)

 

Banks

4130.310

 

 

Funded Interests Term Loans (FITL) On -

 

Banks

-

Financial Institutions

-

Others

-

 

 

Other Credit Facilities From Banks:-

 

Cash Credit

2834.560

Packing Credit Foreign Currency Loan

1134.780

Working Capital Demand Loan

730.780

Short Term Working Capital Loan

750.000

 

 

Total

26441.360

 

O] The original insurance company limited of its terms Loans of Rs.57.300 Millions

P] United India insurance company limited of its terms Loans of Rs.98.200 Millions

Q] IFCI Limited of its terms Loans of Rs.125.200 Millions

R] IDBI of its terms Loans of Rs.271.300 Millions

S] ICICI Bank Limited of its terms Loans of Rs.140.100 Millions

T] Indian Overseas Bank of its terms Loans of Rs.559.600 Millions

 

Note:

Security on movables has since been created by way of execution of deed of hypothecation. Creation of security on immovable by way of mortgage is under process.

 

On First Charge Basis – ECB Facilities

 

The ECB Facilities of the company have been refinanced by way of availment of the following ECB facilities:

 

I] State Bank of India, Tokyo of its ECB facility of JPY Rs.5228.53 Millions

Security on movables has since been created by way of execution of deed of hypothecation. Creation of security on immovable by way of mortgage is under process

II] State Bank of India, Singapore of its ECB facility of USD Rs.39.700 Millions

III] State Bank of India, London of its ECB facility of USD Rs.22.500 Millions and USD Rs.40.000 Millions

 

On First Charge Basis – LC Facilities

 

I] IDBI its LC facilities of Rs.2250.000 Millions

Security on movables has since been created by way of execution of deed of hypothecation. Creation of security on immovable by way of mortgage is under process

 

On Second Charge Basis – Revised Working Capital Facilities

 

A] State Bank of India of its Working Capital facilities Rs.7860.000 Millions

B] Central Bank of India of its Working Capital facilities Rs.350.000 Millions

C] Punjab National Bank of its Working Capital facilities Rs.1570.000 Millions

D] Allahabad Bank of its Working Capital facilities Rs.2500.000 Millions

E] Union Bank of India of its Working Capital facilities Rs.1300.000 Millions

F] United Bank of India of its Working Capital facilities Rs.750.000 Millions

G] State Bank of Hyderabad of its Working Capital facilities Rs.1150.000+ Millions

H] UCO Bank of its Working Capital facilities Rs.250.000 Millions

I] Indian Overseas Bank of its Working Capital facilities Rs.781400.000Millions

J] The Karur Vysya Bank of its Working Capital facilities Rs.1400.000 Millions

K] Bank of India of its Working Capital facilities Rs.1620.000Millions

L] IDBI of its Working Capital facilities Rs.2250.000 Millions

M] ICICI Bank Limited of its Working Capital facilities Rs.1880.000 Millions

N] Standard Chartered Bank of its Working Capital facilities Rs.1000.000 Millions.

 

 

 

Banking Relations :

--

 

 

Financial Institutions :

·         Life Insurance Corporation of India

·         IFCI Limited

·         United India Insurance Company Limited

·         National Insurance Company Limited

·         General Insurance Company Limited

·         The New India Assurance Company Limited

·         The Oriental Insurance Company Limited

 

 

Auditors :

Lodha and Company

Chartered Accountants

 

Chakraborthy and Company

Chartered Accountants

 

 

Joint venture:

·         Chatterjee Petrochem (Mauritius) Company, Mauritius; TATAs, India

·         West Bengal Industrial Development Corporation Limited, India

 

 

Collaboration:

·         ABB Lommus Global Inc; BASF / LUMMUS;

·         Chatterejee Petrochem (Mauritius) Company, Mauritius; IFP, France, Lurgi, Germany; Mutsui/ Technimont; Montell (Spherilene)/ Tecnimont , Itay, Montell thru Tecnimont, Italy.

 

 

Other Company:

·         Merlin Resources Private Limited

 

 

CAPITAL STRUCTURE

 

(AS ON 31.03.2007)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,200,000,000

Equity Shares

Rs.10/- each

Rs.22000.000millions

3,000,00,000

Preference Shares

Rs.10/- each

Rs.3000.000 millions

 

 

 

 

 

Total

 

 

Rs.25000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,559,915,828

Equity Shares

Rs.10/- each

Rs.15599.160 millions

271,081,818

Preference Shares

Rs.10/- each

Rs.2710.820 millions

 

 

 

 

 

Total

 

 

Rs.18309.980 Millions

 

NOTE:

 

The above shares are redeemable on 24th February, 2012, which at the company’s option can be extended for 2 additional 5 year term with coupon rate 1% or Equity Dividend whichever is higher.

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

18309.980

18309.980

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

7344.230

1531.330

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

25654.210

19841.310

LOAN FUNDS

 

 

 

1] Secured Loans

 

26441.360

30106.100

2] Unsecured Loans

 

0.000

0.000

TOTAL BORROWING

 

26441.360

30106.100

DEFERRED TAX LIABILITIES

 

3215.460

728.000

 

 

 

 

TOTAL

 

55311.030

50675.410

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

41484.260

44288.860

Capital work-in-progress

 

2964.190

661.010

 

 

 

 

INVESTMENT

 

775.310

775.310

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

7091.540

8098.450

 

Sundry Debtors

 

2641.470

1878.340

 

Cash & Bank Balances

 

4267.680

467.300

 

Other Current Assets
 
163.870
1453.790

 

Loans & Advances

 

4618.440

3122.280

Total Current Assets

 

18783.000

15020.160

Less : CURRENT LIABILITIES & PROVISIONS
 

 
 

 

Sundry Creditors

 

 

Other Current Liabilities

 

7480.840

9542.200

 

Provisions

 

1214.890

581.280

Total Current Liabilities

 

8695.730

10123.480

Net Current Assets

 

10087.270

4896.680

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

53.550

 

 

 

 

TOTAL

 

55311.030

50675.410

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2007

31.03.2006

 

SALES

 

 

 

 

 

Income

 

70873.700

57518.700

 

 

Other Income

 

1745.940

4241.200

 

 

TOTAL                                     (A)

 

72619.640

61759.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Materials

 

46398.240

40138.300

 

 

Other Manufacturing Expenses

 

11624.430

10618.310

 

 

Increase/(Decrease) in Finished Goods

 

383.650

(375.160)

 

 

Miscellaneous Expenses

 

53.550

160.670

 

 

TOTAL                                     (B)

 

58459.870

50542.120

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

 

14159.770

11217.780

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

2820.090

3304.560

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

 

11339.680

7913.220

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

3027.720

3033.490

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

8311.960

4879.730

 

 

 

 

 

Less

TAX                                                                  (H)

 

2499.080

1876.370

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

5812.880

3003.360

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

 

16565.120

14422.210

 

 

Other Earnings

 

0.200

0.100

 

TOTAL EARNINGS

 

16565.320

14422.310

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

 

36357.010

31349.660

 

 

Stores & Spares

 

1301.840

552.580

 

TOTAL IMPORTS

 

37658.850

31902.240

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

 

Particulars

 

 

31.03.2011

31.03.2010

Sales Turnover (Approximately)

 

84000.000

37890.000

 

Expected Sales (2011-2012) : Rs.120000.000 Millions

 

The above information has been parted by Mr. Deepak [Chief Manager]

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2007

31.03.2006

PAT / Total Income

(%)
 

8.00

4.86

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

11.73

8.48

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

13.79

8.23

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.32

0.25

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

1.37

2.03

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

2.16

1.48

 

 

LOCAL AGENCY FURTHER INFORMATION

 

BUSINESS DESCRIPTION          

 

 

sUBJECT Subject produces polymers and chemicals for various industrial applications. The company owns and operates plants that produce polyethylene in different grades. It products are used to manufacture bags and containers for the packaging of fruits and vegetables. The company also produces polypropylene for manufacturing woven sacks for packaging fertilisers. In addition, its products are used to make thermoformed cups, containers and other disposable items. The company other product range includes hydro-generated liquefied petroleum gas for vehicles and heating appliances.

 

FIXED ASSETS:

 

  • Land (Leasehold)
  • Building
  • Plant and Machinery
  • Electrical Equipment
  • Furniture, Fixture and Office Equipment
  • Vehicles
  • Intangibles

 

 

WEBSITE DETAILS:

 

MAJOR MILESTONES

 

2010-Sucessful completion of project Supermax

 

2009-HPLCL buyout and management control

 

2007-Turnover exceeded 2 Billion USD. Reported maximum PAT since inception

 

2005-Capacity enhanced by 25%

 

2004-Reported PAT for the first time. Turnover exceeded 1 Billion USD

 

2003-Corporate Debt Restructuring (CDR) Approved

 

2001-Commercial production started.

 

2000-Project Commissioned. Trial production started

 

1997-Project construction started

 

1996-Land Acquisition completed

 

1994-MOU signed between WBIDC, Chatterjee Fund Management, Soros Fund Management & Tata group of companies for implementation of HPL Complex through a joint venture co.

 

1992-Environmental Clearance of the project received

 

1985-Incorporated as a public limited company

 

Financials

 

Performance of subject company has been phenomenal since 2003-04. Overcoming the past setback and backed by significant turnaround, HPL had posted its maiden profit in 2003-04. During 2005-06, HPL wiped out all its accumulated losses and added Rs. 1,531.33 million to Reserves and Surplus and is standing at Rs. 7344.23 million as at March 31, 2007.

 

Backed by strong state-of-the-art technology, operating experience and committed efforts of highly skilled manpower, the Company consistently operated its plant at rates higher than the[declared] installed capacity. Naphtha Cracker capacity utilization during fiscal 2004-05, 2005-06 and 2006-07 were about 104%, 103% and 106%.

 

In fiscal 2004-05, 2005-06 and 2006-07, the net sales (net of excise duty) of the Company were Rs. 53,619.78 million, Rs.57518.70 million and Rs. 70873.70 million respectively, representing about 32% increase from fiscal 2004-05 to fiscal 2006-07.

 

The quality of HPL’s products remained World Standard and continued to be appreciated in domestic and international markets.

 

In 2006-07, polymers accounted for about 73% of the net sales as against 74% and 76% in 2005-06 and 2004-05 respectively. Chemicals accounted for about 27% of the turnover as against 26% and 24% in 2005-06 and 2004-05 respectively.

 

Sales in the domestic market accounted for about 77% of the net sales in 2006-07 as against 75% and 67% in 2005-06 and 2004-05 respectively while the export sales accounted for 23% as against 25% and 33% in 2005-06 and 2004-05 respectively.

 

Interest and financial charges reduced to Rs. 3,980.98 million in 2004-05 from Rs. 4,303.89 million in 2003-04 primarily due to implementation of CDR package. Interest expenditure further reduced from Rs. 3304.56 million in 2005-06 to Rs. 2820.09 million in fiscal 2006-07 due to prepayment of debts, refinancing of External Commercial Borrowings and repayment of foreign currency debts.

 

During 2006-07, the Company recorded Profit before Tax (PBT) of Rs. 8311.96 million, an increase of 70% over 2005-06 of Rs. 4879.73 million and increase of 16% over 2004-05 of Rs. 7153.95 million.

The performance of HPL during the year ended March 31, 2007 is as under:

 

Net Sales – Rs. 70873.70 million
Operating Profit (EBITDA) – Rs. 14213.32 million
Interest and Financial Charges – Rs. 2820.09 million
Profit Before Taxation (PBT) - Rs. 8311.96 million

 

The Company is implementing expansion of capacity by about 30% which will take ethylene production capacity to 670 KTPA from the current level of 520 KTPA.

 

The Company is firmly moving ahead and aims at growing aggressively.

 

 

PRESS CLIPPINGS:-

 

AHMEDABAD: The West Bengal government is understood to have initiated informal talks with the Mukesh Ambani-controlled Reliance group for selling its stake in the Haldia Petrochemicals.


According to market sources, the government, which is in conflicts with its JV partner, the Chatterjee Group, over shareholding pattern has started looking at other big petrochemicals companies, including Reliance group companies.

Sources said Reliance is toying over the idea of acquiring West Bengal government stake in HPL through IPCL, considering the synergy between the two companies. When contacted by TOI, an IPCL spokesperson declined to comment.

The allotment of 7.5% equity to IOC has become a bone of contention between the West Bengal government and Chatterjee group, as the latter is opposing the move. Following this proposal, Chatterjee group had approached the Company Law Board on the issue of allotment of shares worth Rs 1500.000 millions  IOC.


If the allotment takes place, the Chatterjee group is likely to become minority share-holders. It is reliably learnt that the West Bengal government has also opposed the formula suggested by CLB, allowing the Chatterjee group to remain majority stake holders.


Sources said, for a permanent solution, the West Bengal government may offer a price at which it wants to sell its holding to Chatterjee group, which has the first right of refusal. "In case, the price is not favourable to the group, The government is expected make a counter offer to buy Chatterjee group's holding in HPL and then it may sell to other interested parties," sources said.


According to sources, in HPL, West Bengal government holds 47.88% share through its West Bengal Industrial Corporation and the Chatterjee group holds 48.94% stake. The government wants to exit from HPL as the project has not taken off as per expectations.

 

KOLKATA: The shareholding tussle over Haldia Petrochemicals has just got murkier. The company's single largest stakeholder, Purnendu Chatterjee, has ruled out any out-of-court settlement with the West Bengal government on the lingering dispute.


The Chatterjee Group (TCG) chairman has also rejected the possibility of any meeting with CM Buddhadeb Bhattacharjee to arrive at a solution to the vexed problem. "The case is sub judice.


Let the Company Law Board now decide the fate of the HPL dispute," Chatterjee said. "I am in no way responsible for whatever has happened with regard to Haldia Petrochemicals, and have no desire at all to meet the CM," he said.


The principal secretary to the CM, Dipankar Mukherjee, said Chatterjee's decision was entirely his own. "They can't speak on his behalf. However, they don't think that their relations have soured," Mukherjee pointed out.


The CLB has already completed its hearings on the HPL issue and an order is expected soon. In the past, CLB chairman S Balasubramanian had urged the CM to play a lead role in reaching an amicable settlement with Chatterjee. However, the CM had told Times of India earlier that he did not wish to meet the TCG chairman.


Chatterjee's spat with the state government arose over the handing over of a 7.5% equity stake in HPL to Indian Oil Corporation, which he felt would reduce him to a minority holding in Haldia Petrochem.


He alleged that he was never kept in the loop about the IOC development, a charge denied by the Bhattacharjee government. Chatterjee has even demanded the resignation of HPL chairman Tarun Das for not keeping him abreast about the deal with IOC.

 

KOLKATA: The Bengal government said it was open to an out-of-court settlement with Purnendu Chatterjee in the larger interests of Haldia Petrochemicals Limited (HPL), but added that The Chatterjee Group (TCG) would first have to make a formal approach.


"They have always suggested such a way out (out-of-court settlement). It is now up to them to decide what to do," state commerce and industries minister Nirupam Sen told TOI, while pointing out that the state was still weighing options to contest the Company Law Board (CLB) verdict on HPL in high court. The minister also said the state has not received any communication from TCG following the CLB verdict that it was willing to talk with the government.

Last week, a TCG spokesman said the group was keen to work amicably with the state.


While contacted for a response to Sen's latest comments, the TCG spokesman declined to comment on whether a formal approach has been made

 

KOLKATA: The Bengal government has filed an appeal in the Calcutta High Court seeking a stay on the Company Law Board's order on Haldia Petrochemicals. This was disclosed by state commerce and industries minister Nirupam Sen, who didnot say when the case is likely to come up for hearing in the court.


Sources close to Chatterjee said the group would take steps to ensure that its interests were protected. However, they reiterated that TCG was still willing to work in coordination with government, as was indicated by Chatterjee in his recent letter to CM Buddhadeb Bhattacharjee.


Sen's immediate reaction to CLB verdict, which was delivered on January 31, was that it was "not acceptable". However, later, he said CLB order had not gone completely against the state. He had said that the state was ready to talk to Chatterjee to ensure that the spat between shareholders did not harm HPL's interests.

The state government had been weighing the option of moving court ever since the CLB directed the state to exit from HPL by selling its stake in the company to The Chatterjee Group (TCG). CLB chairman S Balasubramanian had said that the government/West Bengal Industrial Development Corporation should disinvest 520 million shares in favour of TCG.

 

The CLB had directed both the state and TCG to appear before it on February 20 to suggest a mutually-acceptable valuer for the 520 million HPL shares. The CLB had said the price payable for the 520 million shares should be the fair price determined by the valuer appointed by it, or Rs 28.80, whichever was higher. Sources said it was still unclear whether the state would be present at CLB forum on February 20 to suggest a valuer in the backdrop of its decision to move the court.

 

KOLKATA: The Calcutta High Court, in an interim order on Friday, stayed the transfer of all shares of Haldia Petrochemicals Limited (HPL).


Justice Jayanta Biswas was hearing a petition filed by the West Bengal government and West Bengal Industrial Development Corporation (WBIDC) against a January 31 order of the Company Law Board (CLB).


The high court stay will be effective till further orders or till the matter is finally disposed of. The next date of hearing has been fixed on February 28.


On January 31, the CLB had confirmed the transfer of 155 million shares by WBIDC at Rs 10 per share to Chatterjee Petrochem (Mauritius) Company, Winstar India Investment Company Limited, India Trade (Mauritius) Limited and Chatterjee Petrochem (India) Private Limited.


CLB had also directed WBIDC and the West Bengal government to transfer 520 million shares held by them to these four companies.


These orders were challenged by the state government and WBIDC before the high court. On Friday, the court started hearing the issue of transfer of 155 million shares by WBIDC. The matter concerning transfer of the 520 million shares will come up for hearing later.


The CLB had directed both the state and The Chatterjee Group (TCG) to appear before it on February 20 to suggest a mutually-acceptable valuer for the 520 million HPL shares.


The CLB had said that the price payable for the 520 million shares should be the fair price determined by the valuer appointed by it, or Rs 28.80, whichever was higher.


The CLB had said the consideration for 520 million shares should be paid within 45 days of the date of valuation report, or 60 days if the state did not feel the need for valuation.

 

CLB chairman S Balasubramanian had instructed TCG to prepare an irrevocable bank guarantee of Rs 500.000 millions in favour of WBIDC and a comfort letter of Rs 15000.000 millions with the state government.


Balasubramanian had said that if TCG failed to pay the amount for 520 million shares, the state government could forfeit the bank guarantee of Rs 500.000 millions and encash it. The government would purchase the shares at Rs 28.80 or as fixed by the valuer.

 

KOLKATA: The Chatterjee Group (TCG) has questioned the locus standi of the West Bengal government, in the matter concerning the transfer of shares of Haldia Petrochemicals Limited (HPL) to Indian Oil Corporation Limited (IOC), before the Calcutta High Court.


TCG also filed four cross appeals against the Company Law Board (CLB) order of January 31, upholding the allotment of 150 million shares to IOC.


"The CLB order will not affect the state government in any way as the latter has no stake in HPL," advocate Sudipto Sarkar submitted on behalf of TCG.


In its January 31 order, CLB had also confirmed the transfer of 155 million shares by the West Bengal Industrial Development Corporation (WBIDC) at Rs 10 per share to Chatterjee Petrochem (Mauritius) Co, Winstar India Investment Co Limited, India Trade (Mauritius) Limited and Chatterjee Petrochem (India) Private Limited.


CLB had also directed WBIDC and the state government to transfer 520 million shares held by them to the four companies. These orders were challenged by the state government and WBIDC before the high court.

On February 16, Justice Jayanta Biswas admitted the appeals and in an interim order, stayed transfer of all shares of HPL.


The court then fixed February 28 as hearing date of appeal against transfer of the 155 million shares by WBIDC. The matter concerning transfer of the 520 million shares will come up later.


After TCG submitted that it had filed four cross appeals, advocate P C Sen for the government sought adjournment.

 

KOLKATA: Haldia Petrochemicals Limited (HPL) is likely to invest Rs 30000.000 millions over a period of more than three years for getting into new product category.


A majority of the fund will come from the internal cash flow of the outfit. HPL chairman Tarun Das said this after the company board meeting.


Das said the company will maintain the performance even in the current financial year. "The bad days are over. Now it is a gold mine," he added. Das informed that there will be a shutdown at the plant for two months in early 2008.

 

KOLKATA: The Bengal government can continue to have a say in the running of Haldia Petrochemicals Limited (HPL).

On Friday, the Calcutta High Court set aside the January 31 order of the Company Law Board (CLB) which had asked the state government to exit HPL by selling its stake in the company to The Chatterjee Group (TCG).

However, Justice Jayanta Biswas, while passing his order, upheld the CLB's order pertaining to the allotment of HPL shares to Indian Oil Corporation (IOC).


The CLB too had upheld the allotment to IOC.


Justice Biswas also refused a prayer by TCG's lawyers to stay operation of his order for two weeks to allow the Purnendu Chatterjee-led group to appeal against it before a higher bench. An appeal against Justice Biswas' order can now be made only in the Supreme Court. "They have no comments to make at this stage as they are awaiting a copy of the order," a TCG spokesman said, when asked for his reaction to the High Court order.

State commerce and industries minister Nirupam Sen said: "It is a happy occasion for us. They have won and are free now." Chief minister Buddhadeb Bhattacharjee said he had heard about the order but did not have the details.

The legal spat between TCG and the state government arose over the transfer of 10% of HPL's equity to IOC for Rs 1500.000 millions, with TCG approaching the CLB for justice in August 2005.

 

Indrani Dutta

 

KOLKATA, Jan. 2

HALDIA Petrochemicals Limited (HPL) may assign (legal transfer of a right) to some banks the agreement that it had signed with Gas Authority of India Limited (GAIL) on December 31, 2002, to raise upfront some funds for the cash-strapped company. With these agreements in place, company officials felt upbeat about further participation by the gas major in the finances of SUBJECT.

 

"The inking of these documents is a significant first step in forging a strong alliance between these two large organisations,'' sources said. Available information suggests that HPL expected to raise at least Rs 3000.000 Millions by securitising the commercial agreements sealed with GAIL.

 

Several banks are expected to be involved in this process, sources said, adding that the memorandum of understanding on a proposed strategic alliance between  the two corporates went "well beyond commercial arrangements paving the way for GAIL's participation in SUBJECT's equity".

 

While a press release issued by SUBJECT on the agreements said that GAIL has already communicated "an expression of interest'' on the equity issue sometime ago, sources said that various routes were being explored for pumping in around Rs 2000.000 Millions . They however refused to divulge details in this regard.

 

It may be mentioned here that in the `comfort letter' given by SUBJECT's lead lender - IDBI - in September 2002 on the proposed financial recast, the beleaguered petrochemical company was told to `arrange' at least Rs 5000.000 Millions of funds by November 30, 2002. Sources felt that by concluding the commercial arrangements (which were hanging fire for quite sometime), SUBJECT has been able to make some progress.

 

Sources said that SUBJECT, which had missed quite a few of its debt servicing schedules since the beginning of 2002, paid IDBI Rs 170.000 Millions in December. This was done on the strength of SUBJECT's December performance.

 

"SUBJECT has had the highest-ever earnings before depreciation, interest and taxation (EBDIT) during this month,'' Mr A. Bose, the company secretary said.

 

A company release said that SUBJECT has clocked 102 per cent capacity utilisation with the highest ever polymer production of 62,000 tonnes. Turnover stood at Rs 3100.000 Millions in December with EBDIT standing at about Rs 420.000 Millions.

 

"With the expected upturn in world petrochem business, SUBJECT was hopeful of emerging as a large and profitable petrochemical company in the not too distant a future,'' the release said.

 

 

PRESS REALEASE:

 

Chatterjee Group chief meet Mamata ahead of HPL board meet

Indo-Asian News Service

26 March 2012

 

Kolkata, March. 26 -- The Chatterjee Group (TCG) chairman and co-promoter of Haldia Petrochemicals Ltd (HPL) Purnendu Chatterjee Monday met West Bengal Chief Minister Mamata Banerjee on the eve of a crucial board meeting of the cash-starved company.

 

HPL, the second largest maker of polyethylene in India and co-promoted by the state government, is currently facing acute financial crisis and observers fear that the company would clock the biggest ever loss in the current financial year.

 

The government has already proposed state Industry Minister Partha Chatterjee's name as its nominee in the HPL board and a resolution has also been drawn in this terms.

 

TCG, however, is learnt to have not yet signed the resolution.

 

The meet of the chief minister and TCG chairman was significant before Tuesday's board meeting as the government was eager to place the industry minister as the non-executive chairman.

 

Neither Banerjee nor Purnendu Chatterjee divulged any detail about the discussion, but the latter when asked if he would prefer minister Partha Chatterjee as the chairman, said, "what is wrong in it."

 

The minister said the Board would decide who would be the chairman.

 

"The board will decide who should be the chairman. If the board wants me to become the chairman, then I shall take the responsibility," he said.

 

HPL is a modern naphtha-based petrochemical complex located 125 km from Kolkata, at Haldia in West Bengal's East Midnapore district. Published by HT Syndication with permission from Indo-Asian News Service.

 

Haldia Petro: State likely to stay put

Times of India

07 March 2012

By Mukherji, Udit Prasanna

 

KOLKATA: The state government is likely to take a call against exiting Haldia Petrochemicals. It has been learnt that the state would soon take a policy decision in this regard.

 

Now, state government holds 43% stake in HPL. There was a strong speculation that the state will exit HPL, which was further fuelled by the government's decision to value its stake in the company. Besides, TCG - the co-promoter of HPL - Reliance Industries and Indian Oil too were keen to buy government's stake in the company.

 

Sources close to the development said that there were a couple of meetings in last one month among government officials and they primarily decided not to exit HPL. "The state government will not exit the firm now. HPL is going through tough time and the government will not be leaving it in the lurch," sources in the government said.

 

Financial analysts felt that it would be prudent for the government if it stayed away from exiting the company. "The market is not in a good shape. The petrochemicals industry is going through a bad cycle and the firm is not doing well," an analyst said.

According to sources, the state government is likely to nominate another director on HPL board. Now, the state has three nominees on HPL board. They are WBIDC MD Nandini Chakraborty, IT and industries secretary Basudeb Banerjee and resident commissioner of Bengal Bhaskar Khulbey. Full capacity of the HPL board is 15. Now, there are 13 members following the resignation of independent director Jamshyd Godrej. "There are two vacant posts in the board and the state will nominate one director. For Godrej's post, there are three contenders - SBI, Indian Oil and Winstar Investment of TCG. If Godrej withdraws resignation, then only one government nominee will be inducted," added sources.

 

Incidentally, TCG has four nominees on the board, including Purnendu Chatterjee. The lenders have five members. Now, TCG holds 44% in the company and IOC has 9.62% holding. There is dispute over 15.5 crore shares of HPL, which are in the custody of WBIDC.

 

These shares were transferred to TCG and then pledged to WBIDC for Rs 140-crore loan. The loan was supposed to be paid back in installments but after receiving Rs 380.000 Millions, the previous government stopped accepting the payments from 2005 following litigation between two promoters. These shares constitute 9.7% stake of HPL and hold the key for TCG. If these were transferred to them then TCG would have got the majority with 53.5% holding.

 

Haldia management in a bind as losses mount

Mint

17 January 2012

 

 

KOLKATA, Jan. 17 -- While the promoters of Haldia Petrochemicals Ltd (HPL)the West Bengal government and The Chatterjee Group (TCG)squabble over ownership and control, the firm's management led by managing director Partha S. Bhattacharyya is struggling to avoid reporting the company as potentially sick.

 

Bhattacharyya's efforts to pare losses have been hobbled by recurrent plant shutdowns. The firm is facing the fifth shutdown since the former chairman of Coal India Ltd took over the reins on 1 April. The company's engineers blame the snarls on faulty implementation of the capacity expansion programe, internally called Project Supermax, on which HPL had spent at least Rs1,3000.000 Millions.

 

Losses in the past few years have eroded almost Rs8000.000 Millions of HPL's net worth. If the company posts a net loss in excess of Rs6750.000 Millions this fiscal year, its net worth would diminish by about half from its peak of Rs2,844 crore some four years ago. Under Indian corporate law, that will force HPL to report itself to the Board for Industrial and Financial Reconstruction (BIFR) as potentially sick. The board is a quasi-judicial body that provides creditor protection to financially stressed firms.

 

Such reporting to BIFR will seriously impair HPL's ability to raise finances for expansion. Besides, the money invested by its promoters in the form of equity around Rs1,6000.000 Millions and at least Rs3,3000.000 Millions of funds lent by banks is at stake.

 

Expansion is key to HPL's survival, according to its chairman Purnendu Chatterjee. On 30 May, Chatterjee said at a press conference in Kolkata that HPL should expand its product offerings to mitigate the effects of downturns in the petrochemical cycle. Such an expansion will cost at least Rs3,5000.000 Millions.

 

Besides struggling to keep the plant running it costs at least $300,000 (around Rs15.000 Millions today) to restart operations after each shutdown production has been scaled back by 25% of HPL's peak capacity for maintenance, according to the firm's engineers, who did not want to be named.

 

"Considering that margins are thin, we decided to shut one of HPL's units for repair," one of them said. "To repair this unit could take up to 40 days." Overall production has fallen by 25% from peak capacity because of the closure of this unit.

 

That apart, production has had to be completely suspended several times a week or so ago, for the fifth time in nine months because of technical problems, another engineer said. "We had initially thought that we will be able to fix the plant in seven days, but now it seems we need at least a week more," he added. Bhattacharyya said the management was focusing on "nut-and-bolts repairs", efficiency and cost rationalization to make sure HPL "made the most" of the upturn seen coming in the petrochemical industry towards the end of 2012.

 

"For instance, HPL has managed to improve its yield to 47%the highest in its history whereas earlier it failed to scale 46%," Bhattacharyya said. He was referring to HPL's output-to-input ratio. "Energy efficiency of the plant has also improved lately."

 

Yet, HPL is possibly staring at a pre-tax loss of around Rs1,0000.000 Millions in fiscal 2012, according to people who sit on the firm's board and are familiar with financial projections made by the management. These people, too, refused to be named.

 

In fiscal 2011, HPL made a net loss of around Rs2500.000 Millions. The company's annual financial results have not been ratified by the board for years because of restrictions arising out of the legal battle between the promoters.

 

HPL's loss in this fiscal year will expand because its socalled tolling marginthe difference between the price of naphtha, its feedstock, and realization from the products it sellshas fallen by $70 a tonne from last year to $150 because of adverse market conditions.

 

Asked if HPL will be able to avoid reporting its financial stress to BIFR, Bhattcharyya said, "We are keeping fingers firmly crossed."

 

Alongside, HPL is planning to hire a consultant to conduct a technical audit of its plant and to advise it on fixing the problems.

 

This person, whose named was not disclosed, has in the past worked in a similar capacity with Exxon-Mobil Corp., according to the engineers cited above. He has already visited HPL's plant and his initial impression about it was that it "isn't bad average", one of the engineers said.

 

RoC notice: State will seek explanation from HPL mgmt

Times of India

04 January 2012

By Mukherji, Udit Prasanna

 

KOLKATA: The state government will question Haldia Petrochemicals (HPL) management on non finalization of accounts following defaulter notice, issued by Registrar of Companies (RoC) on Monday.

 

RoC had issued show-cause notice to the petrochem firm for non filing of balance sheet and not holding annual general meeting AGM). Commerce and industries (C&I) minister Partha

 

Chatterjee told TOI that it is keeping a close watch on the development of HPL, the flagship of new industrialization in the state. The state government is a co-promoter of HPL with 43% stake. "We heard about the RoC show-cause notice. The state government is keeping watch.

 

We will ask the management about this," he added. Chatterjee had earlier made it clear that the state government would adopt a transparent method for selling its stake in the petrochem firm as well as running the company.

 

Currently, TCG chief Purnendu Chatterjee is the chairman of HPL while Partha S Bhattacharyya is the managing director. There are three nominees on the HPL board which are independent in nature.

 

It may be noted that HPL is not filing annual accounts to RoC which is mandatory under company law since 2005 because of legal disputes. The battle between two promoters – TCG and the state government - had started in 2005 in Company Law Board and continued till September 2011. From CLB, the case was taken to Calcutta High Court and finally to Supreme Court. The SC verdict on HPL was delivered on September 2011.

 

Sources said that RoC has issued notice under section 220, 166 and 270 of the Companies Act. "It is for non filing of balance sheet, not holding AGM and non placement of balance sheet at the AGM. These are gross violations," sources close to the development said. It was argued that RoC has issued the notice because three months have passed since the SC verdict but HPL has not filed the balance sheet. "There is no legal case pending for which they can seek further extension of time for filing of balance sheet," added sources.

 

It may be noted that the petrochem outfit is now facing a tough time. The combined effect of downcycle in petrochemicals and shutdowns had translated into Rs 4180.000 Millions loss for HPL in the first six months of this fiscal (2011-12).

 

It may witness erosion of close to 50% of the pick net-worth by end of this fiscal. Sources said that the petrochem firm may plunge into over Rs 5000.000 Millions loss in 2011-12 following the downturn in petrochemical industry that started last December. ICRA has also downgraded HPL from BBB+ to BBB

 

Now, RoC issues show-cause notice to HPL

Times of India

04 January 2012

By Mukherji, Udit Prasanna

 

KOLKATA: Even the New Year has failed to bring cheers to beleaguered Haldia Petrochemicals (HPL). In a major blow to the petrochem firm, Registrar of Companies (RoC) has issued a show-cause notice to it, on the first working day of 2012, for non filing of balance sheet and not holding annual general meeting (AGM).

 

When contacted HPL officials said that the issue is being addressed.

 

It may be noted that due to legal disputes HPL is not filing annual accounts to RoC, which is mandatory under the Company Law since 2005.

 

The battle between two promoters - TCG and the state government - started in 2005 in the Company Law Board and continued till September 2011. From CLB to Calcutta High Court and finally to Supreme Court, the case went through all the legal corridors. The SC verdict on HPL was delivered only in September 2011.

 

Sources close to the development said that RoC has issued notice under section 220, 166 and 270 of the Companies Act. "It is for not filing balance sheet, not holding AGM and non placement of balance sheet at the AGM. These are gross violations," sources said. It was argued that RoC has issued the notice because three months have passed since the SC verdict, but HPL has not filed the balance sheet. "There is no legal case pending for which they can seek further extension of time for filing of balance sheet," added sources.

 

It may be noted that HPL board had referred the accounts to audit committee for further verification before approval last month. The accounts were supposed to be approved in the meeting before Registrar of Companies (RoC) filing.

However, it has been learnt that the nominees of financial institutions were in favour of referring it to audit committee.

 

Incidentally, the petrochem outfit is now facing a tough time. The combined effect of downcycle in petrochemicals and shutdowns have translated into Rs 4180.000 Millions loss for HPL in the first six months of this fiscal (2011-12). It may witness erosion of close to 50% of the pick net worth by end of this fiscal.

 

Sources close to the development said that the petrochem firm may plunge into over Rs 5000.000 Millions loss in 2011-12 following the downturn in petro-chemical industry that started last December.

 

No auction, govt has to sell shares to TCG at valuation: TCG

Press Trust of India

20 December 2011

 

Kolkata, December 21, 2011 (PTI) -- A day after West Bengal said it will conduct an auction to assess the value of its shares in Haldia Petrochemicals prior to offering them to The Chatterjee Group, a senior company official has said this is out of the question and the shares must be sold to TCG "at valuation".

 

"When the government has to sell its shares, it has to sell to TCG at valuation and it cannot say it can go for an auction," TCG (Chatterjee Group) President Aniruddha Lahiri told PTI when contacted for the group's comment on the government's stance.

 

While TCG Chairman Purnendu Chatterjee could not be reached for comment as he was abroad, Lahiri said, "TCG has not succeeded in the courts of law on the ground that its petitions were not maintainable under Sections 397/398 of the Companies Act and all agreements prior to the litigation are valid and subsisting."

 

Meanwhile, a legal opinion by former Chief Justice of India V N Khare has asserted that the transfer of 155 million shares of the West Bengal government to TCG is a "concluded contract".

 

HPL had sought legal advice from Khare on the status of all agreements reached between the two promoters, the West Bengal government and TCG following the Supreme Court judgement in favour of the state's right to hold on to the shares in September.

 

Lahiri said HPL would have to register the shares in favour of TCG in the company's books of accounts and also to sell the shares held by WBIDC (a government agency) to TCG.

 

HPL was forced to take a legal opinion on the issue as it was under pressure from its lenders, the sources said.

 

When a corporate debt restructuring (CDR) package for the ailing company was cleared, a provision for conversion of its Rs 128 crore bank loan into equity existed.

 

The sources said since this has not taken place yet, the banks had asked the company to seek a legal opinion on all the agreements which the company had signed with its lenders.

 

The legal opinion has been circulated among all the board members of the company, according to the sources.

 

"A high-level committee has been formed and a decision will be taken soon," the sources said

 

The West Bengal government has been locked in a battle with TCG for control of HPL since 2006. Most recently, the Supreme Court dismissed a petition filed by The Chatterjee Group (TCG) against the decision of the Calcutta High Court allowing the West Bengal government to retain 155 million shares in Haldia Petrochemicals Ltd.

 

Purnendu Chatterjee-led TCG had approached the Supreme Court after the High Court set aside a 2007 order of the company Law Board (CLB) directing the state government to exit from HPL by selling its stake to its joint venture partner, TCG. PTI DC MD RAH ARV ARV 12211543

 

Govt has to sell its shares to us: HPL's Purnendu Chatterjee

Press Trust of India

10 December 2011

 

Kolkata, December 11 2011 (PTI) -- Purnendu Chatterjee, one of the promoters and chairman of Haldia Petrochemicals, said the government has to sell the shares held by it to  TCG (The Chatterjee Group) entities -- promoted by him.

 

"I fully expect that the government will honour all the commitments reached between us and sell 520 million shares held by it after valuing them," Chatterjee told PTI.

 

As per the agreement between the two promoters, TCG has the first right of refusal.

 

Chatterjee said, "Our position is very clear. TCG is the beneficial owner of 155 million shares, but the registration is not done yet".

 

He said the shares needed to be registered by the West Bengal Industrial Development Corporation (WBIDC) and TCG was ready to pay the balance amount needed for the entire block of 155 million shares.

 

Chatterjee said that TCG had earlier paid a few installments for 155 million block of shares but the cheques between the two promoters, the other promoter being WBIDC.

 

He said, "The Supreme Court judgement had not dealt with the loan repayment issue and the government should accept the repayment and present the shares for registration in TCG's name".

 

Asked what would be his course of action if the government decided to go for the auction route to sell the shares held by it, Chatterjee said, "I do not know whether the government is planning on those lines. The position is not critical so far".

 

"I have a good relationship with the government. I will fully expect that the government will honour all the valid agreements and there is no reason why the government will dishonor them," Chatterjee observed.

 

"We are waiting for the government to take a decision," he said.

 

Meanwhile, a crucial board meeting of HPL is slated to be held tomorrow. PTI dc MD CR RAH MR 12111222

 

HPL stake: State may offer TCG first right to refusal

Times of India

09 December 2011

By Mukherji, Udit Prasanna

 

KOLKATA: The state will offer the first right of refusal to The Chatterjee Group (TCG) Purnendu Chatterjee promoted TCG if there is an auction of the state's stake in Rs 10,0000.000 Millions Haldia Petrochemicals Ltd (HPL).

 

HPL has the most advanced petrochem plant in the country, second only to Reliance in this field. Now, the state holds 43% shares of HPL while TCG has 44%. IndianOil (IOC), which holds 9.6%, is the third largest shareholder.

State commerce and industries minister Partha Chatterjee told TOI that the government is sympathetic to Purnendu Chatterjee as founding promoter of HPL and will give him an opportunity to match the price if there is an auction of the government's stake. "We want to give our stake to him (Purnendu), but the government will do it in a transparent manner. We feel auction is the best option to avoid controversy. But TCG will get scope to match the highest price," he added.

 

However, the minister made it clear that the government is unlikely to transfer 155.000 Millions shares to TCG as per the 2003 agreement between two promoters. "The previous government had an agreement with TCG. But we would like to sell our stake in a transparent manner. If TCG goes to the court, we cannot help," he added.

 

As per the agreement, West Bengal Industrial Development Corporation (WBIDC), which holds the government's stake in HPL, was supposed to transfer 155.000 Millions shares to TCG at Rs 10 each. TCG was supposed to pay the price in instalments, but after payment of Rs 380.000 Millions, WBIDC stopped accepting payment from TCG following litigation between two promoters since 2005.

 

The 155.000 Millions shares constitute of around 9.7% of the paid up equity of HPL Interestingly, these shares are not shown in the balance sheet of WBIDC as well which in turn means that it has 520.000 Millions shares in the petrochem firm. Now, the 155.000 Millions shares hold the key to the issue since if these were transferred to them then it would have got the majority with 53.5% stake. The state government has additional Rs 2710.000 Millions worth of preference

shares but it does not have voting rights and would not count in ownership battle.

 

Sources close to TCG argued that the 155.000 Millions shares don't belong to state government at all. "It was transferred to TCG and then was pledged to WBIDC for a Rs 140-crore loan. The loan was supposed to be paid back in instalments, but after receiving Rs 380.000 Millions, the previous government stopped accepting the payments," a TCG source added. HPL has paid up equity of Rs 1,5600.000 Millions or 1560.000 Millions shares of Rs 10 each.

 

Analysts feel that valuation of government holding would be ranging from Rs 1,5000.000 Millions to Rs 2,1000.000 Millions depending on whether it has 520.000 Millions shares or 6750.000 Millions shares.

 

It may be noted that the petrochem outfit is now facing a tough time. The combined effect of downcycle in petrochemicals and shutdowns had caused a loss of Rs 4180.000 Millions for HPL in the first six months of this fiscal. It may witness erosion of close to 50% of the pick networth by the end of this fiscal. Sources close to the development said that the petrochem firm may plunge in to over Rs 5000.000 Millions loss in 2011-12 following the downturn in petrochemical industry that started last December.

 

Accord Fintech (India): 22 July 2011

 

India, July 22 -- Indian equity indices are trading firm continuing their euphoric mood gyrating near the highest point of the day as investors relentlessly piled up hefty positions in the heavyweight stocks. Market participants were seen piling up the position in TECk, Bankex and Auto while selling was witnessed in Consumer Durables sector. Stocks like ITC, CRISIL, Rallis India, Hawkins Cooker, TTK Healthcare, AKZO India, Gujarat Fluorochemicals, TTK Prestige, Sabero Organics, Sumeet Industries, Ajanta Pharma, Petronet LNG, Indraprastha Gas, Rushil Decor, KKCL, Redington India and Varun Industries hit new high. Sesa Goa, a Vedanta Group company has cut its year-on-year volume growth projection for FY12 at 15% from 25% estimated earlier due to export ban in Karnataka and other issues. The Sesa Goa stock has been under pressure since March this year after the government levied 20% duty on all kinds of ore export. Heavy activity is seen in BS TransComm, Jubliant Industries and Network 18 after Mukund Motor sold 2.21 lakh shares of BS TransComm, GA Global Investments sold 2 lakh shares of Jubilant Industries while Citigroup Global bought 41.79 lakh shares of Network 18. On the global front, Asian markets are trading in green barring KLSE Composite while the European markets too were trading in green on optimistic note after the European Union leaders carved out a second bailout package worth 109 billion euros ($157 billion) for debt-stricken Greece in a desperate effort to contain the 18-month-long debt crisis in the single-currency bloc of 17 nations. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,600 and 18,700 levels, respectively. The market breadth on the BSE was positive in the ratio of 1696:1088 while, 124 scrips remained unchanged.Moreover, India's lucrative polypropylene market dominated by Reliance Industries is occupying centre stage in diplomatic relations between India and Saudi Arabia as the oil-rich kingdom is mounting intense pressure on New Delhi to withdraw anti-dumping duty on the plastics raw material. The issue will be on the agenda in bilateral talks in September, when Saudi Arabia is expected to strongly pitch for the withdrawal of the duty as the world's biggest oil exporter is eyeing markets for the giant petrochemicals plants it wants to build to diversify its oil-centric economy. Reliance, Asia's biggest manufacturer of the key input for plastics, commands 70% market share in India with a capacity of 1 million tonnes and had successfully led the domestic industry's campaign for anti-dumping duty two years ago. Haldia Petrochemicals, which produces 3.2 lakh tonnes a year, also supports the levy. But Saudi Arabia resents this move and is relentlessly lobbying against it. The BSE Sensex is currently trading at 18,727.69 up by 291.50 points or 1.58% after trading as high as 18,742.35 and as low as 18,533.43. There were 29 stocks advancing against 1 decline on the index. The broader indices were trading on a strong note; the BSE Mid cap index surged 1.19% and Small cap climbed by 0.89% respectively.� On the BSE sectoral space, TECk up 2.03%, Bankex up 1.91%, Auto up 1.83%, IT up 1.81% and Oil and Gas up 1.65% were the major gainers, while Consumer Durables down 1.12% was the lone loser on the index. The top gainers on the Sensex were Bharti Airtel up by 3.40%, M and M up by 2.65%, Infosys up by 2.52%, Tata Motors up 2.50% and ICICI Bank up 2.02%.On the flip side, DLF down by 0.33% was the lone losers on the index.Meanwhile, ahead of the central bank's monetary policy review on July 26, RBI Governor D Subbarao met Finance Minister Pranab Mukhejee to discuss the macro economic situation of the country. Despite the fear of economic slowdown, RBI is expected to hike its key policy rate to control the sticky inflation. After meeting finance minister, Governor said, "I have come to review the macro-economic situation with Finance Minister before the policy review, slated for July 26.' The meeting of RBI governor and finance minister was also attended by other senior official of finance ministry.� On 26 July, the central bank is scheduled to announce the first quarterly credit policy for current financial year. In the quarterly policy review, RBI is expected to hike its short term leading (repo) and borrowing rate (reverse repo) rates by another 25 basis points. Since March 2010, central bank has increased its short term leading and borrowing rates by 2.5% or 250 basis points, as a result of RBI's non-stop increase in interest rates, capital cost has increased significantly, and it also had adversely affected industry and consumers.�� Despite the anti-inflationary stance adopted by the RBI, headline inflation measured by Wholesale Price Index (WPI) had remained well above the RBI's comfort level. For the month June, headline inflation increase to 9.44% from 9.06% in May. RBI is facing challenging task of managing balance between inflation and growth. However, elevated inflation along with RBI's anti-inflationary stance had affected the health of economic growth. Recently, government also revised its projection of country's Gross Domestic Product (GDP) downward from 9% to 8.6 % on account of slower industrial production and stubbornly high inflation. The Index of Industrial Production for May stood at 5.6% which is nine month low level due to poor performance of manufacturing, mining and lower offtake of capital goods.� The S and P CNX Nifty is currently trading at 5,633.00, higher by 91.40 points or 1.65% after trading as high as 5,638.90 and as low as 5,567.10. There were 48 stocks advancing against 1 decline while 1 stock remained unchanged on the index. The top gainers of the Nifty were Axis Bank up by 4.90%, Bharti Airtel up by 3.45%, IDFC up by 2.92%, M and M up by 2.80% and Ambuja Cement up by 2.69%, while on the flip side DLF down 0.12% was the lone losers on the index. Asian markets are exhibiting optimistic trends as Shanghai Composite inched up 0.18%, Hang Seng rallied 2.08%, Jakarta Composite gained 0.55%, Nikkei 225 surged by 1.22%, Straits Times soared 1.33%, Seoul Composite jumped 1.22% and Taiwan Weighted climbed by 0.55%. On the other hand, KLSE Composite slipped by 0.05%. The European markets are trading in green with, France's CAC 40 gained 1.21%, Germany's DAX rose 0.69% and London's FTSE added 0.89%. Published by HT Syndication with permission from Accord Fintech. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com

 

Press Trust of India: 20 July 2011


Rajkot, July 21 2011 (PTI) -- Gujarat's leading player in the polymers, woven sack bags and fabrics, Rajiv group is eyeing to achieve Rs 10000.000 Millions sales in next five years.

 

Talking to media persons here, Chairman and Managing Director of Team Rajiv, Rajiv Vastupal said, "with the Indian economy poised for strong growth over the next decade, our group too will grow aggressively. The group's first target is to cross the Rs.7000.000 Millions sales mark in next two years from Rs 5500.000 Millions now and thereafter we plan to grow to Rs 10000.000 Millions over the next five years".

 

Our manufacturing as well as trading businesses will contribute to growth in the future, he said.

 

The group's flagship company, Rajiv Petrochemicals is a leader in trading of petrochmeicals and polymers and is one of the largest distributors of polypropylene and polyethylene for Haldia Petrochemicals.

 

While group company Atlantis Products has emerged as one of the largest producers of woven sack bags and fabrics in the country.

 

Atlantis exports woven sack bags and fabrics to over ten countries including Canada, USA, Belgium and Brazil, he added.

 

Mint: 19 July 2011

 

India, July 19 -- US-based venture capitalist and Haldia Petrochemicals Limited (HPL) cochemicals Limited (HPL) cofounder Purnendu Chatterjee was appointed the firm's chairman on Monday, but its board did not immediately give him a definite term.

 

"I am chairman of the company from today's board meeting till the next one," said Chatterjee, who until now was HPL's vicechairman. HPL is a joint venture between The Chatterjee Group (TCG) and the West Bengal government.

 

The state government was likely to agree to the appointment of Chatterjee as HPL chairman, capping six years of litigation between the two promoters over control and ownership of eastern India's biggest petrochemical company, Mint reported on 6 June.

 

The latest arrangement will continue till the Supreme Court delivers a verdict in the legal dispute between TCG and the state government, according to Partha Chatterjee, the state's commerce and industries minister. "We could have offered him a definite term--say at least a year--but couldn't in view of the outstanding legal dispute," he said.

 

Monday's decision to immediately agree to his appointment as chairman indicates a last-minute change of plan, pointing to the possibility that the two key stakeholders are discussing an out-ofcourt settlement.

 

Partha Chatterjee had said on 6 July that the state government was willing to consider faster ways of resolving the legal dispute. That apart, he has said that unlike the previous administration, the Trinamool Congressled state government wouldn't interfere with the running of HPL.

 

The post of HPL's chairman was lying vacant after Tarun Das, former chief mentor of industry lobby group Confederation of Indian Industry, stepped down after the end of the Left Front's 34-year rule in West Bengal two months ago.

 

He was appointed the firm's chairman in 2001 by the previous government.

 

HPL's board on Monday decided to halt production to address some outstanding technical problems that arose from capacity expansion.

 

"If a lifetime award was ever to be given for a botched-up industrial project, it should go to Project Supermax," Purnendu Chatterjee said in an interview. HPL's capacity expansion programme was internally known as Project Supermax.

 

HPL will halt production for at least 18 days, which could be later extended, according to Chatterjee. "There's a glut in the international market and margins are low," said Chatterjee. "So we decided to take the shutdown immediately."

 

The company had raised its naphtha cracking capacity to 700,000 tonnes from 522,000 tonnes a year at a cost of Rs.13000.000 Millions.

 

It spent almost twice the amount it had budgeted for capacity expansion.

 

But the expanded capacity didn't stabilize, and production had to be halted several times.

 

Petrochemical prices fell by the time the expanded capacity was commissioned, HPL's managing director Partha S. Bhattacharyya had said earlier.

 

The loss of production because of the 18-day shutdown would worsen HPL's financial condition. Its cash flow in fiscal 2011 was "just about enough" to fulfil its commitments to lenders, Purnendu Chatterjee said.

 

The company has secured consent from lenders to borrow an additional Rs.4000.000 Millions through five-year term loans to meet immediate working capital needs, he added. Published by HT Syndication with permission from MINT.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         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.51.30

UK Pound

1

Rs.81.36

Euro

1

Rs.67.97

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

72

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

 

-

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.