MIRA
INFORM REPORT
|
Report Date : |
12.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
DEEPAK
FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED |
|
|
|
|
Registered
Office : |
Opposite
Golf Course, Shastri Nagar, Yerawada, Pune - 411006, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
31.05.1979 |
|
|
|
|
Com. Reg. No.: |
11-021360 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.882.049 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24121MH1979PLC021360 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMD10002G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACD1388D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer
and Exporter of Ammonia, Fertilizers Chemical, Industrial Chemicals, Nitric Acid,
Isopropyl Alcohol, Methanol Nitro Phosphate, Ammonium Nitrate Phosphate etc. |
|
|
|
|
No. of Employees
: |
600 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 53000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a well established company having a good track record.
There appears slight dip in its profitability during 2013. However, general financial position seems to be good performance
capability is high. Trade relations are reported to be fair. Business is
active. Payment are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loans = AA |
|
Rating Explanation |
High degree of safety and very low credit risk |
|
Date |
July 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non Fund Based Limited = A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
July 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Sanjay |
|
Designation : |
General Manager |
|
Contact No.: |
91-20-66458000 |
LOCATIONS
|
Registered /
Corporate Office : |
Opposite
Golf Course, Shastri Nagar, Yerawada, Pune -411006, |
|
Tel. No.: |
91-20-26684155/
26684342/ 26684597/ 26684235/ 26458000/ 66458000 |
|
Fax No.: |
91-20-26687499/
26683727 |
|
E-Mail : |
investorgrievance@deepakfertilsers.com
|
|
Website : |
|
|
|
|
|
Factory : |
Plot
No. K-1, K-7 and K-8, MIDC Industrial Area, Taloja, A. V., District Raigad –
410208, Maharashtra, India |
|
Tel. No.: |
91-22-67684000 |
|
Fax No.: |
91-22-27412413 |
|
E Mail: |
|
|
|
|
|
Marketing /
Project Office : |
Plot
No. 32, Sector 16, Opposite Modern College, Vashi, Navi Mumbai - 400703, Maharashtra,
India |
|
|
|
|
Branch Office
: |
Located at: ·
Delhi Office |
|
E-Mail: |
|
|
|
|
|
Area Offices : |
Located at: Ř
Akola Ř
Nagpur Ř
Nashik Ř
Aurangabad Ř
Hubli Ř
Kolkata Ř
Hyderabad |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. S. C. Mehta |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Partha Bhattacharyya |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. R. A. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. Basu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. C. Singhal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. U. P.
Jhaveri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. R. Wadhwa |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. S. Rama Iyer |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Parul S. Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Anil Sachdev |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pranay Vakil |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Gundi |
|
Designation : |
General Manager Finance and Accounts |
|
|
|
|
Name : |
Mr. R Sriraman |
|
Designation : |
Senior Vice President (Legal) and Company Secretary |
|
|
|
|
Management Team : |
Ř
Somnath Patil, President and CFO Ř
Rajendra Sinh, President - HRD and Corporate Services Ř
Dr. Rajeev Chemburkar, President – Chemicals Ř
Guy R. Goves, President – Agribusiness Ř
Pandurang Landge, President – Projects Ř
Carl Anders Lindgren, President and Technical
Advisor for TAN Ř Alok Goel,
President – Strategy and Business Development |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
19556085 |
22.17 |
|
|
18655372 |
21.15 |
|
|
38211457 |
43.32 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
38211457 |
43.32 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4301897 |
4.88 |
|
|
32046 |
0.04 |
|
|
1451253 |
1.65 |
|
|
11380419 |
12.90 |
|
|
17165615 |
19.46 |
|
|
|
|
|
|
8010084 |
9.08 |
|
|
|
|
|
|
18997255 |
21.54 |
|
|
3324556 |
3.77 |
|
|
2495976 |
2.83 |
|
|
12575 |
0.01 |
|
|
2298651 |
2.61 |
|
|
184750 |
0.21 |
|
|
32827871 |
37.22 |
|
Total Public shareholding (B) |
49993486 |
56.68 |
|
Total (A)+(B) |
88204943 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
88204943 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
and Exporter of Ammonia, Fertilizers Chemical, Industrial Chemicals, Nitric Acid,
Isopropyl Alcohol, Methanol Nitro Phosphate, Ammonium Nitrate Phosphate etc. |
||||||||||||
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|
||||||||||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Ammonia |
(MT) |
125400 |
125400 |
150926 |
|
CNA |
(MT) |
79200 |
79200 |
93546 |
|
DNA |
(MT) |
445500 |
445500 |
308950 |
|
Methanol |
(MT) |
100000 |
100000 |
81888 |
|
IPA |
(MT) |
70000 |
70000 |
67462 |
|
Propane |
(MT) |
-- |
-- |
9166 |
|
Crude IPE |
(MT) |
-- |
-- |
2557 |
|
TAN |
(MT) |
429000 |
429000 |
146827 |
|
CO2 |
(MT) |
33000 |
33000 |
30403 |
|
NP |
(MT) |
229500 |
229500 |
125231 |
|
|
(MT) |
25000 |
25000 |
11254 |
|
Power |
KWH |
87600000 |
87600000 |
15427120 |
GENERAL INFORMATION
|
Customers: |
End Users |
|
|
|
|
No. of Employees : |
600 (Approximately) |
|
|
|
|
Bankers : |
·
Bank of Baroda ·
IDBI Bank Limited ·
The Hongkong and Shanghai Banking Corporation
Limited ·
DBS Bank Limited ·
ICICI Bank Limited |
|
|
|
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
|
|
|
|
|
Solicitors : |
Ř
Crawford Bayley and Company Ř J. Sagar
Associates |
|
|
|
|
Auditors : |
|
|
Name : |
B. K. Khare and Company Chartered Accountants |
|
Address : |
Mumbai,
|
|
|
|
|
Associates: |
·
Ishanya Brand Services Limited ·
Ishanya Realty Corporation Limited |
|
|
|
|
Subsidiaries: |
·
Smartchem Technologies Limited ·
Deepak Nitrochem Pty. Limited ·
Deepak Mining Services Private Limited ·
Yerrowda Investments Limited ·
RungePincockMinarco India Private Limited |
|
|
|
|
Enterprises over which key Managerial personnel are able to Exercise significant influence: |
·
Blue Shell Investments Private Limited ·
Deepak Nitrite Limited ·
Nova Synthetic Limited ·
The Lakaki Works Private Limited ·
Superpose Credits And Capital Private Limited ·
Storewell Credits And Capital Private Limited ·
High Tide Investments Private Limited ·
Deepak Asset Reconstruction Private Limited ·
Mahadhan Investment and Finance Private Limited ·
SCM Soilfert Limited ·
SCM Fertichem Limited ·
Ishanya Foundation ·
Deepak Foundation |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1250.000 Millions |
|
1000000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 100.000 Millions |
|
|
Total |
|
Rs. 1350.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
88204943 |
Equity Shares |
Rs. 10/- each |
Rs. 882.049
Millions |
|
|
|
|
|
a. Reconciliation of Number of Shares outstanding at the beginning and
end of the reporting period
|
|
31.03.2013 |
|
|
|
No. of Shares |
Rs. in millions |
|
Balance as at the beginning of the year |
88204943 |
882.049 |
|
Add:Issued during the year |
---- |
|
|
Balance as at
the end of the year |
88204943 |
882.049 |
b. Terms/ Rights attached with Equity Shares
The Company has only one class of issued
Equity Shares having a par value of Rs.10 per share. Each holder of Equity
Shares is entitled to one vote per share.
The Company declares and pays dividend in
Indian Rupee except in the case of overseas Shareholders where dividend is paid
in respective foreign currencies considering foreign exchange rate applied at
the date of remittance.
The dividend proposed by the Board of
Directors is subject to the approval of Shareholders in the ensuing Annual
General Meeting.
In the event of liquidation of the Company,
the holders of Equity Shares will be entitled to receive remaining assets of
the Company, after distribution of all preferential amounts, in proportion to
their shareholding.
During the year ended 31st March,
2013, the amount of dividend per share recognised as distribution to Equity
Shareholders is Rs.5.50 (Rs.5.50).
c. Details of Shareholders holding more than 5% share in the Company
|
|
31.03.2013 |
|
|
Equity Shares of Rs. 10/- each fully paid |
No. of Shares |
% of Holding |
|
S. C. Mehta |
17.392 |
19.72% |
|
Nova Synthetic Limited |
17.267 |
19.58% |
|
Fidelity Puritan
Trust - Fidelity Low Priced Stock Fund |
7.569 |
8.58% |
|
Total |
42.228 |
47.88% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
882.049 |
882.049 |
882.049 |
|
(b) Reserves & Surplus |
12260.457 |
11352.951 |
9779.115 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
13142.506 |
12235.000 |
10661.164 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
7141.504 |
5098.395 |
6402.275 |
|
(b) Deferred tax liabilities (Net) |
1222.838 |
1012.460 |
806.144 |
|
(c) Other long term liabilities |
7.702 |
11.898 |
0.000 |
|
(d) long-term provisions |
197.888 |
143.142 |
62.529 |
|
Total Non-current Liabilities (3) |
8569.932 |
6265.895 |
7270.948 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
3044.302 |
2694.172 |
1259.019 |
|
(b) Trade payables |
2076.125 |
2130.779 |
670.906 |
|
(c) Other current
liabilities |
2066.035 |
2202.402 |
1865.284 |
|
(d) Short-term provisions |
699.378 |
643.192 |
669.624 |
|
Total Current Liabilities (4) |
7885.840 |
7670.545 |
4464.833 |
|
|
|
|
|
|
TOTAL |
29598.278 |
26171.440 |
22396.945 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
14023.589 |
12945.584 |
10032.936 |
|
(ii) Intangible Assets |
103.361 |
127.491 |
135.979 |
|
(iii) Capital
work-in-progress |
265.431 |
1200.586 |
2699.392 |
|
(iv) Intangible
assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
956.578 |
976.412 |
825.528 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
581.936 |
357.945 |
606.671 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
15930.895 |
15608.018 |
14300.506 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
2483.262 |
211.952 |
310.190 |
|
(b) Inventories |
2397.844 |
2064.606 |
1567.675 |
|
(c) Trade receivables |
6451.646 |
5651.060 |
2431.392 |
|
(d) Cash and cash
equivalents |
1020.122 |
1456.901 |
2789.564 |
|
(e) Short-term loans and
advances |
1122.815 |
1143.186 |
962.823 |
|
(f) Other current assets |
191.694 |
35.717 |
34.795 |
|
Total Current Assets |
13667.383 |
10563.422 |
8096.439 |
|
|
|
|
|
|
TOTAL |
29598.278 |
26171.440 |
22396.945 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
26064.590 |
23425.333 |
15648.177 |
|
|
|
Other Income |
617.814 |
396.569 |
358.227 |
|
|
|
TOTAL (A) |
26682.404 |
23821.902 |
16006.404 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
12499.729 |
11347.137 |
7072.213 |
|
|
|
Purchases of Stock-in-Trade |
6301.709 |
4392.298 |
2378.020 |
|
|
|
Changes in Inventories of Finished Goods and Stock-in-Trade- (Increase) / Decrease |
(309.631) |
(293.461) |
40.563 |
|
|
|
Employee Benefits Expense |
1450.164 |
1393.170 |
1067.965 |
|
|
|
Other Expenses |
2938.387 |
2580.901 |
1649.585 |
|
|
|
Exceptional Items |
0.000 |
0.000 |
33.809 |
|
|
|
TOTAL (B) |
22880.358 |
19420.045 |
12242.155 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3802.046 |
4401.857 |
3764.249 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
821.737 |
682.240 |
439.013 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2980.309 |
3719.617 |
3325.236 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
974.536 |
819.062 |
714.671 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2005.773 |
2900.555 |
2610.565 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
536.722 |
770.817 |
744.324 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1469.051 |
2129.738 |
1866.241 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8305.502 |
7122.548 |
6091.764 |
|
|
|
|
|
|
|
|
|
|
Transferred from Debenture Redemption Reserve |
0.000 |
0.000 |
38.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to Debenture Redemption
Reserve |
116.563 |
179.200 |
179.200 |
|
|
|
Transferred to General Reserve |
147.500 |
213.500 |
187.000 |
|
|
|
Proposed Dividend on Equity Shares (Net) |
485.140 |
485.122 |
440.865 |
|
|
|
Tax on Proposed Dividend (Net) |
75.455 |
68.962 |
66.392 |
|
|
BALANCE CARRIED
TO THE B/S |
8949.895 |
8305.502 |
7122.548 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods (on FOB basis) |
784.585 |
779.995 |
461.824 |
|
|
|
Other income |
138.178 |
23.046 |
37.817 |
|
|
TOTAL EARNINGS |
922.763 |
803.041 |
499.641 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials |
2514.946 |
2773.251 |
1154.616 |
|
|
|
Components and spare parts |
70.924 |
96.608 |
102.202 |
|
|
|
Capital goods |
67.045 |
221.649 |
91.578 |
|
|
|
Stock-in-trade |
2597.062 |
2684.687 |
1152.158 |
|
|
TOTAL IMPORTS |
5249.977 |
5776.195 |
2500.554 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
16.65 |
24.15 |
21.16 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
5.51
|
8.94 |
11.66 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.70
|
12.38 |
16.68 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.07
|
12.09 |
13.83 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.24 |
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.78
|
0.64 |
0.72 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.73
|
1.38 |
1.81 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
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 |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
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 |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
|
LITIGATION DETAILS |
|||||||
|
Bench:-
Bombay |
|
||||||
|
Stamp No:- |
WPST/19648/2013 |
Failing Date:- |
18/07/2013 |
|
|
|
|
|
|
|||||||
|
|
Main Matter |
|
|||||
|
Petitioner:- |
MAHARASHTRA STATE ELECTRICITY DISTRIBUTER |
Respondent:- |
DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED |
||||
|
Petn.Adv:- |
LITTLE AND CO. |
||||||
|
District:- |
PUNE |
||||||
|
|
|||||||
|
Bench:- |
Single |
|
|
||||
|
Status:- |
Pre-Admission |
Stage:- |
|
||||
|
Last Date:- |
25/07/2013 |
|
|||||
|
Last Coram:- |
Registrar (Judicial) |
||||||
|
|
|
||||||
|
Act:- |
Electricity Supplier Act, 1948 |
||||||
MANAGEMENT DISCUSSION
AND ANALYSIS
THE BUSINESS
ENVIRONMENT
The year 2012-13 saw a challenging business environment in the sectors
the Company operates in. The global economy is yet to show firm conclusive
signs of recovery with the US economy still uncertain and the EU zone is
struggling with its own difficulties. The monetary restraints undertaken by
emerging markets economies in previous years did ease, though new corporate
investment and consumer spending remained subdued.
Trade flows to the EU zone did not grow as expected leading to a
pressure on exports for the emerging market nations. China’s growth showed the
first signs of relative slowdown, impacting global growth as well. At a
sectoral level, ammonia demand outstripped supply. Overall, all these
developments led to pressures in some of the sectors that the Company operates
in.
The Indian scenario too was challenging. The Indian rupee continued to
remain weak. Reserve Bank of India’s tight monetary policy continued for a
large part of 2012-13 and though inflation moderated, global supply side
constraints in key raw materials that the Company requires continued to pose
problems. Two consecutive years of drought hit the Indian fertiliser industry
hard negatively impacting sales volume of fertiliser, a key product of the
Company. The Government delayed fertiliser subsidy payments which had its own
negative impact on the fertiliser industry’s cash flows. India’s mining sector
too maintained an uneven tempo where coal sector growth was not matched by
other mining segments and the overall growth in the country’s mining sector
stood at a negative 1.9 percent. Cost pressures in raw materials like ammonia
and sluggish demand also put pressure on both growth and profitability of
Technical Ammonium Nitrate (TAN), another key product of the Company.
The year 2013-14, however, is expected to be promising. The shale gas
finds in the USA have already begun transformation in the ammonia derivatives
space that the Company operates in. New investment in downstream products from
natural gas are fast lining up in the North American markets and the
medium-to-long term outlook for ammonia is likely to turn positive in the next
two-to-three years with considerably improved availability and price stability.
On the domestic front, the monsoon is expected to be favourable after
two years of drought. All indications are
that the domestic mining sector except for iron ore is now in a recovery
mode. With inflation moderating, monetary pressure is also easing. Despite the
uneven pace of reforms being a cause of concern, the investment climate is
turning mildly positive. All these augur well for the sectors the Company
operates in.
THE SCENARIO FOR
DFPCL
The year saw a tough economic scenario. The Company maintained its
topline and market share in a year that saw drought and unusually high ammonia
prices. Its strong customer-centric approach and loyal customer relationships
saw it through tough times with commendable resilience. Its ability to derive
scale advantages, its proximity to customers, distribution strengths, product
quality and technical services saw it gain market share in key products like
Iso Propyl Alcohol and Technical Ammonium Nitrate and retain market share in
Nitric Acid, under tough operating conditions. Its strong fertiliser brand,
Mahadhan Mahapower 24:24:0 also saw marginal growth in a year where most of its
competitors saw severe volume pressures.
RAW MATERIALS
The Company’s key raw materials are Natural Gas, Ammonia, Phosphoric
Acid and Propylene. The natural gas scenario in India today continues to remain
somewhat uncertain. Though potential for the KG Basin remains high, the gas
extraction levels are far from optimal. Policy and pricing uncertainties
remain. But the easing of global gas
scenario with the new shale gas finds in the USA should be a game changer for
the industry. This has the potential to positively impact the global fertiliser
sector, including India, by way of reasonably priced ammonia in the medium
term. The huge gas finds in East African countries also offer opportunities to
benefit India since these are in its freight-economic zone. The Company is
studying these developments closely and will seek out optimal ways to gain from
these emerging prospects.
Globally, ammonia shortages driven by lower gas output in Trinidad and
the delayed commissioning of new capacities in the Middle East and Algeria saw
prices rise abnormally through the first ten months of the financial year.
However, with the Middle East capacities coming online around February 2013 and
Algerian capacities expected to come online around second half of 2013, the
situation is expected to ease somewhat. The lower demand for bulk fertilisers
from major importers like India and China also saw some easing of ammonia
prices and greater volume availability during February and March 2013.
While the Company has firm quantity contracts for Ammonia with a leading
global player, domestic availability of ammonia also remains strong. With
supply side constraints easing considerably and prices turning reasonably
favourable, the Company is now poised to fully exploit its supply chain assets,
including its well-connected tankages at JNPT and Taloja. These provide
flexibility for both global or domestic sourcing efficiently as per market
conditions. In line with falling global DAP prices, Phosphoric acid prices are
also expected to soften in 2013-14. The Company is confident of being able to
manage the procurement of phos acid efficiently.
The Company’s long-term contract with BPCL for propylene, apart from
alternative sources available domestically, gives it a strong edge as the
leading player in the Iso Propyl Alcohol market. Demand for the product remains
strong and with the Company’s domestic scale and marketing skills, the product
should be a strong driver for future growth of the business.
AGRI-BUSINESS
The Company operates in sectors that closely impact people’s lives. In
the agri-sector, it operates in critical markets for foodgrains and cash crops
and connects directly with the Indian farmer. Its fruits and vegetables output
management business touches the Indian and global consumer directly. Thus,
despite the drought and the consequent pressure on the domestic fertiliser
industry, the overall prospects remain favourable. Food demand is growing and
diversifying beyond staples like rice and wheat. Demand for world-class produce
in fruits and vegetables is growing. The growth of supply chains for retail
within India will also create opportunities in fresh produce marketing. Demand
conditions in cash crops like cotton and sugarcane too remain favourable and
show promise of growth.
Straddling synergies from the nutrient/input business right across the
output space, the agri-business remains an
attractive focus area for future growth of the Company. At one level it
is augmenting fertiliser capacity with work in progress for a new 6,00,000 MT
NPK Plant at Taloja and a new 30,000 MT Bentonite Sulphur Plant in the North.
At another level it is climbing the value chain of outputs like quality fruits
and vegetables. Supporting both ends would be a stronger brand and distribution
network.
Though the Central Government’s nutrient based subsidy policy has
created healthy competition for all fertiliser manufacturers across India, the
Company is ideally placed to grow its market share. It has a carefully chosen
basket of fertiliser inputs, from its unique nitrate-delivery product Mahadhan
24:24:0, to its strong portfolio of water soluble and other speciality
fertilisers. Its ability to manage its supply chain through the import of other
bulk fertilisers is also proven.
The Company’s emerging business model will exploit opportunities at each
level of the food value chain from farm nutrient inputs, to services and fresh
produce management. This integrated value chain will remain the critical
differentiator that should spell success in the Indian market. Last-mile
connectivity to farmers is being enhanced with its 17 Saarrthie Centres and
strong relationships with nearly 10,000 farmers through its services model and
its fresh fruits and vegatables business. The services and output management
model enhances brand loyalty for the Company’s fertiliser products. The policy
of creating effective mechanisms to deliver vital nutrient inputs coupled with
services and advice has proven to increase farm yields and profitability,
enhancing credibility and net back earning of the farmers.
TECHNICAL AMMONIUM
NITRATE (TAN)
This business of the Company is vital to the Indian economy. TAN remains
the blasting agent of choice globally
and therefore it is among the most critical inputs into mines (including
coal, iron ore, limestone, etc.) and infrastructure including construction and
cement. The Company’s long term business outlook for TAN remains strong with
both demand drivers and capacities in place, with a potential to serve close to
70% of the market share of total consumption in the country today. The Company
is strongly poised to exploit the emerging opportunities in the Indian and
global mining and construction industry through its scale as a major producer
of TAN. The outlook for the global mining and construction industry continues
to be promising with SE Asia, Africa and Australia, all natural markets for
India, continuing to show growth in the mining and construction sectors.
Besides meeting the growing domestic demand, export is also being targeted as a
key focus area.
India’s mining industry, despite low to negative growth in 2012-13, is
still promising a medium-to-long term growth of 7-8%, which in turn creates
opportunities for similar growth rates for TAN. Domestic regulations for TAN,
notified by the Government as Ammonium Nitrate Rules, 2012, shall come into
force from January, 2014 and the
Company is ready with its processes to comply.
The Company has the vision to become the most preferred supplier of TAN
and its downstream products and services, both in India and abroad. In order to
achieve this, it will emphasise customer focus and will exploit every
possible aspect of the value chain in the explosives industry. The
Company is also exploring improved service to customers by way of Bulk Mixing
Device trucks in the domestic market. It is moving to acquire the necessary
skills and know-how required to complete the value chain and enable the
derivation of comprehensive value in the explosives sector from the TAN
business. Improved logistics management systems and processes have also been
put into place. To provide a just-in-time product, the Company has augmented
its distribution chain with warehouses close to the customer, which gives a
proximity advantage.
The Company, through its subsidiary Deepak Mining Services Private
Limited., has entered into a JV, namely, RungePincockMinarco India Private
Limited, with an Australia based renowned global mining consultancy provider,
RungePincockMinarco Limited which will enable it augment mine services and
consulting services and capture a part of the mining value chain.
INDUSTRIAL
CHEMICALS
The Company’s industrial chemicals products too have a direct impact on
the Indian consumers’ lives. While Iso
Propyl Alchohol is among the most critical ingredients to pharmaceutical
formulations, cosmetics, dyes and printing inks, Carbon Dioxide is a key
component of soft drinks and dry ice. Nitric Acid is crucial to the
nitro-aromatics sector, used in the manufacture of drugs like Paracetamol and
Vitamin B6. Nitric Acid also finds application in the textile industry to
produce coloured fabrics and CNA is used mainly for production of TDI (Toluene
Di Isocynate) which is used to produce polyurethane used in shoes and other footwear,
as well as automobile and aircraft interiors and insulating foam in
refrigerators. With continuing demand for IPA from the strongly growing Indian
pharma sector, growth estimates for the product continue to be robust and
market growth is expected to remain in 6% range for 2013-14. In order to
augment its market share, the Company has started importing IPA beyond its own
manufacturing. Capacity growth in this product is being closely examined, given
the promise for the future.
The sales of Nitric Acid, a basic commodity chemical, with widespread
use across several sectors, faced some challenges due to sluggish downstream
growth in the export segments of nitro-aromatics and dyestuffs largely due to
the Euro zone crisis. The Company enjoys a strong scale advantage as Asia’s
largest single-location manufacturer of Dilute Nitric Acid (DNA). Its customer
relationships and its domestic geographical advantages are proving to be key
strengths. The food-grade CO2product continues to enjoy strong customer loyalty
and growth. Its product quality is world-class and with growing demand this
could be a product that will derive steady growth and satisfactory margins in
the years to come.
Methanol continues to remain an opportunistic product in a market
dominated by imports. Given the market conditions, this product is unlikely to
be a focus area for the future.
VALUE ADDED REAL
ESTATE
The shopping-centre / mall business in India continues to be a
challenge. Despite emerging competition and oversupply in the market, the
Company’s mall, Ishanya, continues to enjoy brand loyalty in the home and
interiors segment. This segment remains a focus area for Ishanya’s growth
although a concerted approach to value enhancement through the addition of inter-related
categories like food, entertainment, accessories and contiguous fashion is
being actively pursued.
Despite the fears of economic slowdown, the home furnishings sector has
registered more or less steady growth, with organised retail players consolidating
their operations during the last year. There is a concerted effort by them to
offer more value to the customers and more emphasis is being placed on
differentiation by design, offering and experience.
Ishanya is keenly exploring the possibility of enabling a differentiated
brand-led home and interior retail model as part of the business improvement
strategies.
DETAILED FINANCIAL
AND OPERATIONAL ANALYSIS
Financial Analysis
During the Financial Year 2012-13 (FY 13), the Company showed a marginal
growth of 2% in its revenue from fertiliser segment, despite a tough
environment and good growth in TAN and IPA. Volumes of other products like
Nitric Acid remained steady though market conditions were tough.
Total Revenue for FY 13 stood at Rs.26064.600 Millions against
Rs.23425.300 Millions in FY 12, an increase of 11%. Sales for the agri-business
grew 2% to Rs. 9934.800 Millions in FY 13 from Rs.9695.000 Millions in FY 12
while sales for the chemicals business grew 18% to Rs. 16885.300 Millions in FY
13 from Rs.14304.900 Millions in FY 12.
Profit Before Tax stood at Rs.2005.800 Millions in FY 13 against
Rs.2900.600 Millions in FY 12, while Net Profit stood at Rs.1469.100 Millions
in FY 13 against Rs.2129.700 Millions in FY 12. Against FY 12, about Rs.6.500
Millions erosion was contributed by unprecedented ammonia price hike and about
Rs.2.400 Millions by way of reduced methanol production with unviable LNG
prices.
Higher ammonia prices and weak demand conditions in both fertilisers and
TAN impacted profitability adversely. Earnings Per Share stood at Rs.16.65
compared to Rs.24.15 in the previous year. The Company continues to remain
financially sound. The average debt cost stood at 8.06% for FY 13 against 9%
for FY 12. During FY 13, long term debt stood at Rs. 7141.500 Millions against
Rs.5098.400 Millions in FY 12. The debt-equity ratio stood at 0.62 as compared
to 0.51 in the previous year. The current ratio (excluding short term
borrowings) was 2.82 in FY 13 as against 2.12 in FY 12.
During the year, the Company mobilised Rs.35.000 Millions through
private placement of Secured Non-Convertible Debentures for General Corporate
Purpose (including long term working capital). The instrument carries AA rating
from CRISIL.
OPERATIONAL
ANALYSIS
As compared to 0.64 MMSM3 per day of Natural Gas (NG) during FY 12, the
Company received 0.52 MMSM3 per day of NG during the year on an average.
Ammonia requirements were met through both in-house manufacture and
outsourcing. Production of Ammonia increased during FY 13 to 1,15,606 MT from
1,14,684 MT in FY 12. The Company outsourced 80,478 MT of Ammonia from the
market against 83,800 MT in FY 12.
PRODUCT-WISE
BUSINESS REVIEW
Production volumes grew across TAN and Nitro Phosphate fertilisers (NP)
for the year. Capacity utilisation in IPA has now been maximised.
Fertiliser/Agri-Sector
The total fertiliser sales volume for FY 13 was 3,66,775 MT against
3,95,495 MT in FY 12. This must be considered in the background of an industry
in which complex fertilisers other than DAP declined by 33.4% while DAP
declined by 15.4%.
Production volumes of Nitro-Phosphate Fertiliser (NP) rose to 1,78,503
MT in FY 13 from 1,77,908 MT in FY 12 with steady availability of phos acid.
The Company’s 24:24:0 grade of NP introduced during the second half of FY 11
remains a strong performer and its nitrate content with its direct application
into the soil remains a unique property. Production volumes of Bentonite
Sulphur stood at 10,336 MT in FY 13 against 13,036 MT in FY 12. The product,
given the inadequacy of sulphur in Indian soil, has good promise for growth in
the future. The Company’s performance in speciality fertilisers remains strong.
The Company has successfully expanded its business into States like
Punjab and Haryana, in addition to the traditional markets of Maharashtra,
Gujarat, Karnataka and Goa.
INDUSTRIAL
CHEMICALS
The total revenue for the chemical segment increased to Rs.16885.300
Millions in FY 13 against Rs.14304.900 Millions in FY 12 registering a growth
of 18%. Technical Ammonium Nitrate (TAN) The Company’s TAN business continued
to show positive growth despite market constraints. Overall sales volumes for
TAN stood at 2,33,337 MT in FY 13 against 2,02,717 MT in FY 12, a growth of
15%. The Company, along with its subsidiary, Smartchem Technologies Limited.,
enjoys around 37% market share in the domestic market.
During the year, the scenario for this product was quite challenging
with the mining industry facing regulatory problems and demand growth for mining
products coming under pressure as the Indian economy turned sluggish. However,
growth prospects for the TAN business continue to remain strong both in India
and globally as coal mining for power and limestone mining for the
cement/infrastructure sector will continue to be fundamental for any economic
growth.
Methanol
Methanol markets saw considerable price volatility and the Company’s
Methanol production during FY 13 remained constrained owing to market
conditions as also in view of high gas prices. Production volumes for FY 13
stood at 13,431 MT against 63,733 MT in FY 12.
Iso-Propyl Alcohol
During the year, the Company continued its good production and sales
levels for this product. The total production of IPA was 70,327 MT in FY 13 compared
to 71,075 MT in FY 12. During the year, the sales volume dropped to 67,904 MT
against 71,016 MT in FY 12 due to lower production in 2nd and 3rd
quarter.
Acids
Production of DNA which is largely captively consumed was recorded at 3,75,506
MT in FY 13 against 3,79,431 MT in FY 12. The total sales volume of Nitric Acid
of different grades stood at 1,18,675 MT against 1,31,083 MT in FY 12. The
Company’s market share of Nitric Acid put together is about 40% in the Indian
market.
Liquid CO2
Demand for liquid CO2product, a by-product of Ammonia, continues to be
strong. Total sales volume stood at 30,125 MT in FY 13 against 31,493 MT in FY
12.
VALUE ADDED REAL
ESTATE
Total revenues from this segment stood at Rs.26.200 Millions in FY 13
against Rs.68.000 Millions in FY 12. This segment of the Company’s business is
now in a turnaround phase. Efforts to maximise customer acquisition are in full
swing.
CONTINGENT LIABILITIES
(Rs. in millions)
|
Liabilities
classified and considered contingent due to contested claims and legal
disputes |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
Claim by Supplier |
330.837 |
261.052 |
|
Income Tax demands |
66.508 |
213.150 |
|
Excise demands |
221.228 |
229.506 |
|
Sales Tax/VAT demands |
258.514 |
174.758 |
|
Total |
877.087 |
878.466 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10426207 |
09/04/2013 |
3,500,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE,
MUMBAI, MAHARASHTRA - 400001, INDIA |
B74446279 |
|
2 |
10372880 |
23/08/2012 |
15,000,000,000.00 |
IL and FS TRUST COMPANY LIMITED |
IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX
BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA |
B56501646 |
|
3 |
10248341 |
11/10/2010 |
500,000,000.00 |
CENTRAL BANK OF INDIA |
MMO BUILDING, 6TH FLOOR, 55, MAHATMA GANDHI ROAD, |
A97674899 |
|
4 |
10245057 |
07/10/2010 |
1,150,000,000.00 |
THE HONGKONG AND SHANGHAI BANKING
CORPORATION LIMITED |
PLOT NO. 139-140B, WESTERN EXPRESS HIGHWAY, SAHAR |
A96437066 |
|
5 |
10206363 |
24/02/2010 |
1,000,000,000.00 |
CENTRAL BANK OF INDIA |
MMO BLDG, 6TH FLOOR, 55, MAHATMA GANDHI ROAD, FOR |
A81243370 |
|
6 |
10204739 |
18/12/2012 * |
960,000,000.00 |
BANK OF BARODA |
CORPORATE FINANCIAL SERVICE BRANCH, MANTRI COURT, |
B65872426 |
|
7 |
10146660 |
17/05/2013 * |
1,250,000,000.00 |
SBICAP TRUSTEE COMPANY LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA -
400020, INDIA |
B75911362 |
FIXED ASSETS
Ř
Land freehold
Ř
Land leasehold
Ř
Buildings
Ř
Plant and machinery
Ř
Electrical installation and fittings
Ř
Furniture and fixtures
Ř
Office equipments
Ř
Vehicles
PRESS RELEASES
DEEPAK FERTILISERS ACQUIRES 24.46% STAKE IN MANGALORE CHEMICALS THROUGH
ITS SUBSIDIARY
JULY 04, 2013
Deepak Fertilisers and Petrochemicals Corporation has informed that SCM Soilfert Limited, a wholly owned subsidiary of the Company has acquired 2,89,91,150 equity shares of face value of Rs 10 each representing 24.46% of share capital of Mangalore Chemicals and Fertilisers.
Deepak Fertilisers and Petrochemicals Corporation Limited has informed BSE that SCM Soilfert Limited, a wholly owned subsidiary of the Company has acquired 2,89,91,150 equity shares of face value of Rs. 10/- each representing 24.46% of share capital of Mangalore Chemicals and Fertilisers Limited.
DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED. 11% TOPLINE
GROWTH IN FY 13 DESPITE TOUGH MARKET PRESSURE
· Fertiliser volumes and market shares in own manufactured products remain intact despite drought conditions
· Technical Ammonium Nitrate business records good growth despite mining industry slowdown
· High raw material prices impact bottomline
· Board of Directors declares 55% Dividend
Mumbai/Pune, May 30, 2013: Deepak Fertilisers And Petrochemicals Corporation today announced its financial results for the Quarter (Q4) and year ended March 31, 2013 (FY 13). For the quarter ended March 31, 2013 (Q4 FY 13), the Company recorded a total income of Rs. 6592.600 Millions as against Rs. 6907.500 Millions in the corresponding quarter of the previous financial year (Q4 FY12). Profit before tax stood at Rs. 408.800 Millions in Q4 FY 13 as against Rs. 640.700 Millions in Q4 FY 12 and Profit after tax stood at Rs. 291.100 Millions in Q4 FY 13 as against Rs. 454.700 Millions in Q4 FY 12.
Segment revenues for Q4 FY 13 for the Agri-business stood at Rs. 2497.400 Millions as against Rs. 3149.700 Millions for the corresponding period in FY 12. Segment profitability for the Agri-business stood at Rs. 325.500 Millions in Q4 FY 13 as against Rs. 347.300 Millions in Q4 FY12. The impact of the drought conditions and the pricing skew towards urea continued to severely hit the sales of complex fertilisers in India with an overall industry decline of 34% in sales of NPK products through the year.
DFPCL was one of the few companies that managed to retain own manufactured fertiliser volumes intact thanks to its strong brand pull and customer-centric focus. The Company’s 24:24:0 grade of NP introduced during the second half of FY11 remains a strong performer and its nitrate content with its direct absorption into the soil being its unique property.
The Chemicals segment registered a growth of 9% to Rs. 4348.200 Millions in Q4 FY 13 as against Rs. 3986.200 Millions in Q4 FY 12 retaining and growing volumes in key product areas like Iso Propyl Alcohol and Technical Ammonium Nitrate and Dilute Nitric acid, despite severe market pressures owing to the overall tough economic scenario. Profits for the Chemicals segment stood at Rs. 491.400 Millions in Q4 FY 13 as against Rs. 649.900 Millions in Q4 FY 12 owing to the abnormal price increases worldwide in crucial raw materials like ammonia.
For the year ended March 31, 2013 (FY13), the Company recorded total Income of Rs. 26064.600 Millions as against Rs. 23425.300 Millions for the corresponding 12 month period ended March 31, 2012 (FY12), a growth of 11%. Profit before tax stood at Rs. 2005.700 Millions in FY 13 as against Rs. 290.06 in FY 12. Profit after tax was recorded at Rs. 1469.000 Millions for FY 13 as against Rs. 2129.800 Millions in FY 12. The Company’s Board of Directors has declared a 55% Dividend for FY 13.
Segment revenues for the Agri-business for FY 13 grew to Rs. 9934.800 Millions in FY 13 as against Rs. 9695.000 Millions in FY 12. Segment profitability for the Agri-business stood at Rs. 1096.500 Millions in FY 13 against Rs. 1134.500 Millions in FY 12.
The Chemicals segment registered a growth of 18% to Rs. 16885.200 Millions in FY 13 vis-ŕ-vis Rs. 14304.900 Millions in FY 12. Profits for the Chemicals segment were recorded at Rs. 249.21crores for FY 13 against Rs. 3259.300 Millions in corresponding previous year. The profitability for the year was impacted on account of high raw material prices. Ammonia prices increased 30% on a Y-on-Y basis during the financial year (FY 13) compared to the previous financial year (FY 12) which had a consequent impact on margins in the downstream Chemicals business. The Methanol plant also had to be shut down for large periods of time during the year due to high spot gas prices which rendered the product unviable.
The strike by the unionised workers at the Company’s Plant situated at Plot No. K-1, MIDC Industrial Area, Taloja, owing to productivity issues and a wage settlement, which commenced on 3rd January, 2013, continues but without a significant impact on production owing to the highly skilled engineers and management staff at the plant and the computerised nature of the technology. All other facilities of the Company including the new TAN Plant at Plot K7-K8 continue to function normally, as did the outsourced products business. Negotiations with the workers are in progress.
Speaking about the Company’s performance, Mr.Sailesh C. Mehta, Chairman and Managing Director – DFPCL, said: “DFPCL’s resilience under pressure is now proven. We’ve maintained our topline in a year that saw drought hitting the fertiliser industry hard and high raw material prices, especially in ammonia. India’s mining sector too maintained an uneven tempo where coal sector growth was not matched by other mining segments and the overall growth in the country’s mining sector stood at a negative 1.9 percent. The Government delayed fertiliser subsidy payments which had its own negative impact on the fertiliser industry’s cash flows.” He added: “Our Company’s strong customer-centric approach and loyal customer relationships saw it through tough times with a commendable resilience that enabled it to maintain its topline and marketshares. Growth prospects for the Company continue to remains strong since each of our products is linked to sectors critical to the overall economy like mining, fertilisers and pharmaceuticals, all of which are certain to grow given India’s strong economic growth potential.”
STATEMENT FROM DEEPAK
FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED
January 3rd, 2013
“The workers of our company working at our plant situated at plot No K-1, MIDC, Industrial Area, Taloja, District Raigad, Maharashtra, have gone on a strike from today on account of a dispute over disciplinary action taken by the management, productivity issues and wage settlement,” the company said in a statement.
The management has approached the Labour Commissioner for conciliation and is taking necessary steps to ensure that the situation is resolved amicably at the earliest, it added.
“Company’s new TAN plant at K-7 and K-8, MIDC Industrial Area, Taloja, District Raigad, Maharashtra, is unaffected by the above mentioned strike and normal operations continue. The company’s outsourced business in fertilisers and chemicals is also not affected,” it added.
The company manufactures fertilisers and also produces speciality chemicals and bio-fertilisers, among other products.
DEEPAK FERTILISERS
AND PETROCHEMICALS CORPORATION LIMITED
TO INVEST RS 4150.000 MILLIONS IN GREENFIELD and BROWNFIELD FERTILISER
PROJECTS
· Brownfield capacity expansion to take NP fertilisers from 2,29,000 MTPA to 6,00,000 MTPA
· Company to gain flexibility to produce all NP / NPK grades, with fortification of micro-nutrients
· 32,000 MTPA Greenfield Bentonite Sulphur plant to be set up at Panipat – Haryana
· Company also announced Q4 and Annual financial results for FY 2011-12
o Declares dividend of 55%
o Income from Operations for FY 12 grew by 50%
o PBT and PAT for FY 12 up 11% and 14 % respectively
o Sales for Agri-Business up by 82%
Mumbai / Pune, Friday, May 18th 2012: Deepak Fertilisers And Petrochemicals Corporation Limited. (DFPCL), among India’s key producers of bulk and specialty fertilisers and industrial chemicals, today announced a project that will more than double the capacity at its integrated fertiliser complex at Taloja, Maharashtra. The Company proposes to invest around Rs. 3600.000 Millions in the proposed project that will enhance the capacity of its NPK grades complex fertilisers from the current 2,29,000 MT pa to 6,00,000 MT pa. The Company also announced a Greenfield Bentonite Sulphur project to be set up at a cost of Rs. 55 crores near Panipat, Haryana. Both projects are expected to be completed in a 30-months timeframe from commencement.
The primary objective of the NPK capacity augmentation exercise is to enhance the Company’s product grades from Single Grade Prilled 24:24:0 Nitro Phosphate (NP) fertilisers to Multi Grade NPK Granulated fertilisers. The execution of this project will enable the Company to gain the flexibility to produce all NP / NPK grades with additional fortification of micro-nutrients as per the seasonal crop requirements. With this capacity augmentation project being undertaken by DFPCL, the region of Western India will now move towards self-sufficiency in NPK fertilisers. This project will also help considerably enhance soil and crop productivity in the region and improve overall soil health. The Bentonite Sulphur project will help compensate the widespread micronutrient deficiency reported in Indian soils. For soils that are saturated with fertilisers such as urea, sulphur based fertilisers will definitely increase the soil quality and the yield.
Commenting on this expansion, Mr. Sailesh C Mehta, Vice Chairman and Managing Director of DFPCL, said, “In our overall analysis of the agricultural sector we’ve assessed a strong demand for increased availability of NPK grades. NPK fertilisers are a primary source for enhancing soil and crop productivity, and an essential input for all major crops – in Maharashtra it is used across farm outputs such as sugar, and all important vegetables and fruits. Given the growing concern over India’s declining fertiliser response ratio and the need for balanced fertiliser use, we have decided to expand and more than double our NPK capacity to 6,00,000 MT pa. We believe this project will significantly benefit farmers in western India and also aid us in significantly enhancing our market share in fertilisers and gain increased competitive advantage”
DFPCL also announced its financial results for the quarter ended March 31st 2012 (Q4 – FY 12), and for the year ended March 31st 2012 (FY 12).
For the financial year FY 2011-12, the Company’s Total income from operations grew by 50% to Rs. 23428.100 Millions as against Rs. 15648.100 Millions in the previous year. The Profit Before tax stood at Rs. 2900.600 Millions as against Rs. 2610.500 Millions in the previous year; an increase of 11% and Profit After Tax rose 14% to Rs. 2129.700 Millions in FY 12 as against Rs. 1866.200 Millions in FY 11.The Company has declared a dividend of 55%
Segment revenues for Agri-business grew by 82% to Rs. 9695.000 Millions in FY 12 against Rs. 5311.800 Millions in the previous year, while revenues for Chemicals business were recorded at Rs. 14304.900 Millions as against Rs. 10759.400 Millions in FY 11. Segment profitability for Agri-business increased 260% at Rs. 1134.500 Millions for FY12 as against Rs. 316.400 Millions in the previous financial year. Segment profitability for Chemicals business stood at Rs. 3259.300 Millions in FY 12 as compared to Rs. 3194.600 Millions in FY 11.
During the year FY 2011-12, the Company also achieved enhanced capacity utilization at its fertiliser plant. For FY 12, the sales for the Company’s nitro-phosphates grew by 100% and other specialty fertilisers sales recorded a 23% rise. The Company also achieved full capacity utilization at its Iso Propyl Alcohol plant.
Profitability for FY 12 was also impacted adversely to the extent of Rs. 170.000 Millions by rupee depreciation and by Rs. 60.000 Millions on account of some planned shutdowns taken in Q4.
For the quarter ended March 31st 2012, the Company posted total Income from Operations at Rs. 6902.600 Millions as compared to Rs. 4284.700 Millions for the corresponding quarter last year a growth of 61%. Profit Before Tax and Profit After Tax was recorded at Rs. 640.700 Millions and Rs. 454.800 Millions respectively, as against Rs. 731.500 Millions and Rs. 527.200 Millions in the corresponding quarter last financial year. Profitability for the quarter was impacted due to a steep increase in raw material costs, coupled with a time lag in finished produce price adjustment and some planned plant shutdowns.
Segment revenues for the quarter from Agri-business and Chemicals business stood at Rs. 3149.700 Millions and Rs. 3986.200 Millions respectively as against Rs. 929.200 Millions and Rs. 3471.800 Millions in the corresponding quarter last year. Segment profitability from Agri-business and Chemicals business stood at Rs. 347.300 Millions and Rs. 649.900 Millions respectively, as against Rs. 6.900 Millions and Rs. 1003.100 Millions in the corresponding quarter last year.
DEEPAK MINING
SERVICES INKS STRATEGIC PARTNERSHIP WITH ASX LISTED COMPANY RUNGEPINCOCKMINARCO
LIMIT
·
India-based
joint venture to cater to the growing needs of the Indian mining sector and
also the surrounding geographies of the Indian sub-continent
Mumbai/Pune, February 18, 2013: Deepak Mining Services Private Limited (DMSPL) is pleased to announce their strategic partnership with the Australia-baed RungePincockMinarco Limited (RPM), through its subsidiary International Mineral Asset Transactions Pty. Limited. DMSPL is a subsidiary of Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL). The JV will be called Complete Mining Services Private Limited.
This agreement creates a jointly owned Indian based joint venture company to provide advisory technology and professional training services to the mineral resources sectors within India and the surrounding geographies of the Indian sub-continent. DFPCL’s 30-year association with the mining sector through its ability to provide top quality Technical Ammonium Nitrate and blasting services to India’s mining sector, encompassing Coal, limestone, iron ore, etc. of various strata has provided it with unique insights and knowledge of India’s mining needs. This knowledge is now being extended with world-class mining services through its JV with Runge Pincock Minarco Limited.
India possesses globally significant mineral resources and the mining industry is perceived to grow at approx. 7% per annum over the next 7-10 years. The coal sector growth is therefore pegged at 7-8% per year, emphasising the need to augment coal production to reduce dependence on imports.
A large number of coal blocks have been allocated to private and public sector players for their captive or commercial usage, the existence of mining expertise with them to establish global standard mining operations in terms of productivity, safety and environment management player are very limited.
Given the continually increasing demand for raw material to boost India’s industrial and infrastructure growth, growing Indian global economic recognition and a changing mindset towards international business practices presents a need for world-class mining services. These can easily be met by the application of best practices advisory and technology products for which RPM is respected globally. The new joint venture company will be well positioned to take advantage of these demands.
The company will expose RungePincockMinarco technology, consulting and professional training services, to the private and public sectors mine owners and operators within India. The JV will also be in position to assist these Indian players for selection of MDO from the Expression of Interest stage through to finalization of contract and implementation. RPM – DMSPL has developed a staged process to MDO selection process, which has proven to assist in ensuring a viable long-term relationship between the mine owner and the successful contractor. The process will involve significant commitment by RPM - Deepak during the definition and selection phase, but it has been shown that this effort is more than rewarded during the contract period, with fewer misunderstandings, reduced claims, lower frequency of disputes and above all the cost savings. The JV will also provide the commercial and technical inputs to due diligence for mining M and A transactions. The initiative comes at a time when India is gearing itself and its massive mining sector to prepare for the enormous demand seen for efficient planning, development and operation of large mining enterprises which have been mandated to supply the raw materials for India’s future needs for power generation and heavy manufacturing. The JV is well positioned to meet customer demands for feasibility studies, due diligence and valuation, mine planning and scheduling, mine optimization, business system and software implementation, professional development training etc. and thus, lay down a solid intellectual capital base to serve the Indian mining sector on a long terms basis. DMSPL believes that integrated mine management, planning and operating systems as tools to address the challenges demanded by the Indian natural resource sector to meet national development targets.
ABOUT DMSPL AND DFPCL
DMSPL is the wholly owned subsidiary of DFPCL. Deepak Mining Services Private Limited (DMSPL), has entered into Geology and Mine Consulting. The company provides end to end solutions in geology, mine consulting and contract mining. The company has set itself a vision to develop as a fast growing Integrated Mining Company of international repute by acquiring best practices to international standards, greater efficiency, safety, higher productivity, unparalleled quality and a high level of consciousness to environmental safety.
DFPCL is among India’s largest manufacturers of derivatives of natural gas and ammonia, and petrochemicals. DFPCL today is a multi-product Indian conglomerate spanning sectors such as – Bulk and Specialty Fertilisers, Industrial Chemicals, Farming Diagnostics and Solutions, Technical Ammonium Nitrate, Mining Services and Consultation and Value Added Real Estate. It is one of the largest producers of Technical Ammonium Nitrate (TAN) in the world and the only producer of explosive grade low density prilled Ammonium Nitrate in India. DFPCL’s commitment to its customers across the explosives and mining industry extends beyond its products to offering its expertise to optimize drilling and blasting across various segments of the Indian mining industry.
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.61.12 |
|
|
1 |
Rs.94.77 |
|
Euro |
1 |
Rs.81.54 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLV |
|
|
|
|
Report Prepared
by : |
NTH |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
63 |
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.