MIRA
INFORM REPORT
|
Report Date : |
22.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED |
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Registered
Office : |
D. No. 8-2-248, Nagarjuna Hills, Punjagutta, Hyderabad – 500082,
Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
07.11.2006 |
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Com. Reg. No.: |
01-076238 |
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Capital
Investment / Paid-up Capital : |
Rs. 598.065 Millions |
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CIN No.: [Company Identification
No.] |
U24129AP2006PLC076238 |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
: |
Manufacturer and Supplier of Plant Nutrients. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 92000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a flagship company of Nagarjuna Group. It is a well established
company having fine track record. Financial position of the company appears to be good. Directors are
reported to be well experienced and respectable businessmen. Trade relations are reported as trustworthy. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
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Rating |
Long Term Bank Facilities : CARE BBB |
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Rating Explanation |
Having moderate degree of safety regarding
timely servicing of financial obligation it carry moderate credit risk |
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Date |
April, 2012 |
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 DECLINED BY
|
Name : |
Ms. Tulsi |
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Designation : |
Officer Assistant |
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Contact No.: |
91-44-23357204 |
LOCATIONS
|
Registered Office/ Corporate
Office : |
D. No. 8-2-248, Nagarjuna Hills, Punjagutta, Hyderabad – 500082,
Andhra Pradesh, India |
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Tel. No.: |
91-40-23357200/ 23357204/ 23356414/ 23356418 |
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Fax No.: |
91-40-23354788 |
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E-Mail : |
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Website : |
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Factory 1 : |
Kakinada East, Godavari District – 533003, Andhra Pradesh, India |
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Tel. No.: |
91-884-2360390 / 2360391 |
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Fax No.: |
91-884-2362084 / 23675020 |
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E-Mail : |
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Factory 2 : |
Micro Division Unit, Plot No. P-10/1, IDA, Nachram, Hyderabad, Andhra Pradesh, India |
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Factory 3 : |
Sadashivpet Mandal, Medak District, Andhra Pradesh, India |
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Factory 4 : |
Halol, Panchmahal District, Gujarat, India |
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Factory 5 : |
Nandi Kandi, Safasivepeth, Andhra Pradesh, India |
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Factory 6 : |
Ikisan Limited, Halol, baroda, Gujarat, India |
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Marketing Office : |
A/612, Dalamal Tower, 211, Nariman Point Mumbai – 400021, Maharashtra,
India |
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Tel. No.: |
91-22-26163195 |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. K.S. Raju |
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Designation : |
Chairman |
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Date of Birth/Age : |
29.06.1950 |
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Qualification: |
B.E |
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Name : |
Mr. K. Rahul Raju |
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Designation : |
Managing Director |
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Date of Birth/Age : |
31.08.1976 |
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Qualification: |
B.Com. (Hons.) |
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Name : |
Mr. Chandra Pal Singh Yadav |
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Designation : |
Nominee Director of KRIBHCO |
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Date of Birth/Age : |
19.03.1959 |
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Qualification: |
M.Sc. B.Ed., L.L.B |
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Name : |
Mr. M.P. Radhkrishnan |
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Designation : |
Nominee Director of SBI |
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Name : |
Dr. N.C.B. Nath |
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Designation : |
Director |
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Date of Birth/Age : |
17.02.1930 |
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Qualification: |
Ph. D (Economics), L.L.B |
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Name : |
Mr. S.P. Arora |
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Designation : |
Nominee Director of IFCI |
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Name : |
Mr. S.R. Ramakrishnan |
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Designation : |
Director |
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Date of Birth/Age : |
04.02.1935 |
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Qualification: |
B.E. (Mech.) |
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Name : |
Mr. Yogesh Rastogi |
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Designation : |
Nominee Director of ICICI Bank Limited |
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Name : |
Medha Joshi |
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Designation : |
Nominee Director of IDBI Bank |
KEY EXECUTIVES
|
Name : |
M Ramakanth |
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Designation : |
Secretary |
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Name : |
Ms. Tulsi |
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Designation : |
Officer Assistant |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
1. A. Promoter’s Holding |
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Indian Promoters |
294033260 |
49.16% |
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Foreign Promoters |
13200000 |
2.21% |
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2. Persons acting in Concert # |
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Sub -Total |
307233260 |
51.37% |
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B. Non–Promoters Holding |
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3. Institutional Investors |
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a. Mutual Funds and UTI |
1173425 |
0.20% |
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b. Banks, Financial Institutions, Insurance Companies (Central / State
Govt. Institutions / Non-Government Institutions) |
8933409 |
1.49% |
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c. Foreign Institutional Investors |
10082944 |
1.69% |
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Sub -Total |
20189778 |
3.38% |
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4. Others |
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a. Private Corporate Bodies |
66154931 |
11.06% |
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b. Indian Public |
172819586 |
28.90% |
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c. NRIs / OCBs |
5776991 |
0.97% |
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d. Any other (please specify) |
25890457 |
4.33% |
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Sub -Total |
270641965 |
45.25% |
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GRAND TOTAL |
598065003 |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Supplier of Plant Nutrients. |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Ammonia # |
MT / Day |
2100 |
942487.00 |
|
Urea # |
MT / Day |
3620 |
1655042.00 |
|
Extruded Irrigation Systems & parts thereof |
Lakh Mtrs / Annum |
874 |
1094.83 |
|
PVC pipes |
MT / Annum |
5467 |
40.10 |
|
Wind Energy |
KWH |
-- |
2192004 |
Note:
* Licenced Capacity is not applicable in terms of Government of India
Notification No. S.0.477(E) dated 25th July, 1991. Registered pursuant to the
scheme of delicensing.
@ As certified by the Management and relied upon by the Auditors being a
technical matter.
# Re-assessed capacity by
Government of India.
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
·
State Bank of India ·
UCO Bank ·
ICICI Bank |
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Facilities : |
Corporate Debt Restructuring: The company was sanctioned a Debt Restructuring Package (including working
capital) under Corporate Debt Restructuring (CDR) Scheme on February 20, 2004
effective from April 1, 2003 vide letter no BY.CDR (AG)/ No.307/2003-04,
dated 16th March 2004. All the lenders had approved and implemented the
Package. In terms of Package: ·
The lenders
reserve the right to recompense the sacrifices being made in case the
profitability and cash flow position of the Company so warrants in future.
Based on management estimate, the Company has, as a measure of prudence,
recognised Rs.717.305 Millions towards amount of recompense up to March 31,
2012. Of which Rs.517.305 Millions has been kept in Deposit Account with IDBI
as directed by Corporate Debt Restructuring Empowered Group towards on
account payment of recompense payable by the Company to all CDR Lenders.
These deposits are in the name of the Company which are under lien to IDBI
Bank Limited, with a absolute right to appropriate the amounts towards
recompense payable by NFCL. ·
The lenders have
the right to convert 20% of their outstanding debt into equity after the
financial year ending on March 31, 2011. In the event of any default in
servicing the debt, the lenders shall also have the right to convert the
defaulted amounts into equity, at par or any other instruments. The promoters
shall have the first right of refusal, if the converted shares/instruments
are decided to be sold by the lenders. ·
The Company is
required to dis-invest its equity investments and recover loans and advances
lent to subsidiary/group companies to the extent and in the manner envisaged
in the said package. Debentures: ·
The debentures
together with accrued interest, remuneration and other expenses thereof are
secured by a registered mortgage and an exclusive charge on the Company’s
immovable property situated at Ahmedabad. Further secured by an equitable
mortgage and a charge on the other immovable and movable properties of the
Company in favour of the debenture trustees, save and except stock in trade,
book debts given as security to banks for obtaining working capital
facilities and assets given on lease with exclusive charge in favour of the
funding institution. ·
The details of
rate of interest and redemption of debentures in terms of CDR Scheme are as
under. Non convertible Debentures of Rs.100/-
each
There are no overdue installments as on date of this balance sheet ·
The interest
rates on above debentures are being reset every three years. In terms of CDR letter
dated August 24, 2010, the interest rates stand revised to 11.50% p.a. w.e.f.
April 1, 2010 in respect of above Debentures except ICICI Bank Limited which
stand revised to 11.40% p.a. ·
The company has
created debenture redemption reserve for the above redeemable non-convertible
debentures. Term Loans – In
Rupees and in Foreign currency from Banks and Financial institutions : ·
Term loans from
banks and financial institutions, together with interest accrued thereon, are
secured by way of: -
a
first charge on the fixed assets of the company ranking pari-passu, inter se,
the lenders; -
a
second charge on the current assets of the Company; and -
a
charge created through an equitable mortgage by deposit of title deeds of
certain specified immovable properties of the Company. ·
Further secured
by pledge of 22,561,693 equity shares held in subsidiary company - Jaiprakash
Engineering and Steel company Limited in favour of Banks/Financial
Institutions for the term loans availed by the Company. ·
All the Term
Loans from Institutions and Banks, Counter Guarantees, Working Capital
facilities from banks are personally guaranteed by Shri K.S. Raju, Chairman
of the Company ·
The details of rate of interest and
repayment of Term Loans in terms of CDR Scheme are as under. (Rs. In Millions)
There are no overdue installments as on date of this balance sheet Term Loans – In
Rupees from Others: ·
The term loan from
Department of Bio Technology (DBT) availed for Process Development Unit is
secured by way of hypothecation of all equipment, apparatus, machineries,
spare tool and other accessories and goods and / or the other movable
properties of the company acquired for the project. ·
Details of rate
of interest and repayment are as under. (Rs. In Millions)
There are no overdue installments as on
date of this balance sheet Term Loans – In
Foreign Currency from Banks: ·
Term Loan in Foreign
Currency is secured by First charge on Wind power assets situated at
Amdhapuram site in Tirunelveli District, Tamilnadu acquired out of the said
loan and residual/subservient charge on the current assets of the company. ·
Details of
interest and repayment are as under. (Rs. In Millions)
There are no overdue installments as on date of this balance sheets |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
M Bhaskara Rao and Company Chartered Accountants |
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Address : |
Hyderabad – 500082, Andhra Pradesh, India |
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Subsidiaries : |
·
Jaiprakash Engineering and Steel Company Limited ·
Nagarjuna Mauritius Private Limited |
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Step down Subsidiaries : |
·
Nagarjuna East Africa Limited (Subsidiary of
Nagarjuna Mauritius Private Limited) |
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Associates : |
·
IKisan Limited ·
Nagarjuna Foundation ·
Nagarjuna Agriculture Research and Development
Institute |
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Enterprises able
to exercise significant influence : |
·
Nagarjuna Management Services Private Limited ·
Nagarjuna Agrichem Limited ·
Nagarjuna Oil Refinery Limited ·
NFCL Employees Welfare Trust |
CAPITAL STRUCTURE
After: 27.07.2011
Authorised Capital : Rs.8010.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.0.500 Million
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6210000000 |
Equity Shares |
Rs.1/- each |
Rs.6210.000 Millions |
|
20000000 |
Preference Shares |
Rs.90/- each |
Rs.1800.000 Millions |
|
|
Total |
|
Rs.8010.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
598065003 |
Equity Shares |
Rs.1/- each |
Rs.598.065
Millions |
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|
Reconciliation of the
Number of shares outstanding at the beginning and at the end of the reporting
period.
|
|
March 31, 2012 |
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|
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No. of shares |
Rs. In Millions |
|
Equity Shares of Rs.1/- |
|
|
|
Outstanding at the beginning of the period |
50000 |
0.500 |
|
Since Sub divided during the year -(Face Value of Rs.1/- each) |
500000 |
-- |
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Add: Issued during the year - (Face Value of Rs.1/- each) |
598065003 |
598.065 |
|
|
598565003 |
598.565 |
|
Less: Cancelled during the year - (Face Value of Rs.1/- each) |
500000 |
0.500 |
|
Outstanding at the end of the period - (Face Value of Rs.1/- each) |
598065003 |
598.065 |
Rights, Preferences
and restrictions attached to equity shares
The company has only one class of equity shares having a par value of ` 1/- per share. Each holder of equity shares is entitled to one vote per share. 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. The distribution will be in proportion to the number of equity shares held by the shareholders.
Details of
shareholders holding more than 5% of the Shares
|
|
March 31, 2012 |
|
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|
No. of shares |
% of shareholding |
|
Equity Shares of Rs.1/- each (Previous year Rs.10/- each) |
|
|
|
Nagarjuna Corporation Limited |
127068520 |
21.25% |
|
Nagarjuna Management Services Private Limited |
78592592 |
13.14% |
|
Nagarjuna Holdings Private Limited |
34626130 |
5.79% |
|
Zuari Industries Limited |
32267741 |
5.40% |
|
Nagarjuna Fertilizers and Chemicals Limited (erstwhile NFCL) |
– |
- |
Aggregate number of
shares issued for consideration other than cash
|
|
31.03.2012 |
|
|
No. of shares |
|
Number of Equity Shares of Rs.1/- each allotted as fully paid up pursuant to Composite Scheme of Arrangement and Amalgamation |
598065003 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
598.065 |
4467.837 |
4653.855 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
22389.090 |
11024.995 |
11173.871 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
22987.155 |
15492.832 |
15827.726 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
19034.969 |
12814.874 |
8615.096 |
|
|
2] Unsecured Loans |
1492.524 |
1375.705 |
1158.423 |
|
|
TOTAL BORROWING |
20527.493 |
14190.579 |
9773.519 |
|
|
DEFERRED TAX LIABILITIES |
1854.709 |
1731.388 |
1811.465 |
|
|
|
|
|
|
|
|
TOTAL |
45369.357 |
31414.799 |
27412.710 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
32073.977 |
17753.034 |
18550.878 |
|
|
Capital work-in-progress |
8.665 |
333.961 |
92.229 |
|
|
|
|
|
|
|
|
INVESTMENT |
531.117 |
9215.141 |
7225.067 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2274.963
|
680.035
|
593.772 |
|
|
Sundry Debtors |
17358.586
|
5427.868
|
2981.619 |
|
|
Cash & Bank Balances |
2802.016
|
1207.811
|
619.591 |
|
|
Other Current Assets |
60.600
|
0.000
|
0.000 |
|
|
Loans & Advances |
464.365
|
465.241
|
1151.712 |
|
Total
Current Assets |
22960.530
|
7780.955
|
5346.694 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
6164.263
|
2051.650
|
2946.030 |
|
|
Other Current Liabilities |
3192.135
|
974.038
|
496.576 |
|
|
Provisions |
848.534
|
642.604
|
359.552 |
|
Total
Current Liabilities |
10204.932
|
3668.292
|
3802.158 |
|
|
Net Current Assets |
12755.598
|
4112.663
|
1544.536 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
45369.357 |
31414.799 |
27412.710 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
|
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
|
49922.799 |
|
|
|
Other Income |
|
|
294.321 |
|
|
|
TOTAL (A) |
|
|
50217.120 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of Traded products |
|
|
0.000 |
|
|
|
Cost of Material Consumed |
|
|
6382.235 |
|
|
|
Raw Material consumed |
|
|
0.000 |
|
|
|
Power and Fuel |
|
|
3972.685 |
|
|
|
Purchase of Traded Goods |
|
|
30571.781 |
|
|
|
Catalyst Charges |
|
|
0.000 |
|
|
|
Chemicals and Consumables |
|
|
0.000 |
|
|
|
Salaries, Wages and benefits |
|
|
1347.517 |
|
|
|
(Increase)/Decrease in Stock |
|
|
(1563.406) |
|
|
|
Packing Material consumed |
|
|
0.000 |
|
|
|
Transport and Handling charges |
|
|
0.000 |
|
|
|
Distribution Expenses |
|
|
0.000 |
|
|
|
Other Expenses |
|
|
4498.901 |
|
|
|
TOTAL (B) |
|
|
45209.713 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
|
5007.407 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
|
1530.493 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
|
3476.914 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
|
1170.134 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
|
2306.780 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
|
947.225 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
|
|
1359.555 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
|
2335.034 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
|
|
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Services |
|
|
102.861 |
|
|
|
Despatch Money |
|
|
7.650 |
|
|
|
Sale of goods (Kenya Branch |
|
|
3.134 |
|
|
TOTAL EARNINGS |
|
|
113.645 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Spares |
|
|
60.996 |
|
|
|
Traded Products |
|
|
21873.335 |
|
|
|
Capital Goods |
|
|
167.402 |
|
|
TOTAL IMPORTS |
|
|
22101.733 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
2.27 |
|
|
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
30871.134 |
19879.092 |
|
|
|
Other Income |
|
131.734 |
217.731 |
|
|
|
TOTAL (A) |
|
31002.868 |
20096.823 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of Traded products |
|
11990.233 |
5336.617 |
|
|
|
Raw Material consumed |
|
5649.186 |
4067.246 |
|
|
|
Power and Fuel |
|
3881.427 |
3119.126 |
|
|
|
Catalyst Charges |
|
0.780 |
57.187 |
|
|
|
Chemicals and Consumables |
|
90.074 |
73.256 |
|
|
|
Salaries, Wages and benefits |
|
1432.213 |
773.424 |
|
|
|
(Increase)/Decrease in Stock |
|
(106.159) |
134.514 |
|
|
|
Packing Material consumed |
|
620.881 |
454.010 |
|
|
|
Transport and Handling charges |
|
2105.226 |
1287.780 |
|
|
|
Distribution Expenses |
|
58.492 |
83.446 |
|
|
|
Other Expenses |
|
926.241 |
898.642 |
|
|
|
TOTAL (B) |
|
26648.594 |
16285.248 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
4354.274 |
3811.575 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
1423.944 |
1415.665 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
2930.330 |
2395.910 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
949.841 |
1281.757 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
1980.489 |
1114.153 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
806.988 |
450.419 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
|
1173.501 |
663.734 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
1845.234 |
1582.019 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Capital Redemption Reserve |
|
186.019 |
0.000 |
|
|
|
Transfer to General Reserve |
|
0.000 |
150.000 |
|
|
|
Preference Dividend |
|
0.019 |
0.037 |
|
|
|
Proposed Dividend - Equity |
|
428.196 |
214.091 |
|
|
|
Dividend Tax |
|
69.467 |
36.391 |
|
|
BALANCE CARRIED
TO THE B/S |
|
2335.034 |
1845.234 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Services |
|
1.866 |
32.816 |
|
|
TOTAL EARNINGS |
|
1.866 |
32.816 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Spares |
|
83.674 |
16.963 |
|
|
|
Traded Products |
|
7988.855 |
1633.473 |
|
|
|
Capital Goods |
|
124.459 |
175.773 |
|
|
TOTAL IMPORTS |
|
8196.988 |
1826.209 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
2.74 |
1.55 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
|
30.06.2012 1st Quarter |
|
|
|
|
|
Unaudited |
|
Net Sales |
|
|
|
8180.780 |
|
Total Expenditure |
|
|
|
7206.510 |
|
PBIDT (Excl OI) |
|
|
|
974.270 |
|
Other Income |
|
|
|
112.380 |
|
Operating Profit |
|
|
|
1086.660 |
|
Interest |
|
|
|
791.650 |
|
Exceptional Items |
|
|
|
0.000 |
|
PBDT |
|
|
|
295.010 |
|
Depreciation |
|
|
|
304.310 |
|
Profit Before Tax |
|
|
|
(9.310) |
|
Tax |
|
|
|
39.0320 |
|
Provisions and contingencies |
|
|
|
0.000 |
|
Profit After Tax |
|
|
|
(48.330) |
|
Extraordinary Items |
|
|
|
0.000 |
|
Prior Period Expenses |
|
|
|
0.000 |
|
Other Adjustments |
|
|
|
0.000 |
|
Net Profit |
|
|
|
(48.330) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.71
|
3.79
|
3.30 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.62
|
6.41
|
5.60 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.19
|
7.76
|
4.66 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.13
|
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.89
|
0.92
|
0.62 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.25
|
2.12
|
1.41 |
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
- |
|
22] |
Litigations that the firm
/ promoter involved in |
- |
|
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 |
Yes |
PLANT OPERATIONS
Urea
The Company during the year manufactured 15.62 LMT of urea as against 16.55 LMT in the previous year.
The Company during the year undertook various initiatives for improving energy efficiency, safety, health, environment, reliability and cost reduction.
The Company during the year also obtained certification of ISO 14001: 2004 RC 14001: 2008 and recertification of ISO 9001: 2008, OHSAS 18001: 2007 and ISO 14001: 2004.
The Company in its quest to continue to protect the environment undertook rain harvesting projects at various locations in the plant.
Micro-Irrigation
The Company achieved a production of 1373.51 Lakh Mtrs against of 1135 Lakh Mtrs during the previous year.
MARKETING
Urea
The Company achieved a sale of manufactured urea of 1562556 MT compared to 1645289 MT in the previous year. The total urea sales both manufactured and imported was 2288011 MT compared to 2200179 MT of previous year.
Other Traded Products
Bulk Products
The Company sold 802246 MTS during the year, in comparison with sales of 407872 MTS during the previous year.
Seeds
The Company sold 4765 MTS during the year, in comparison with sales of 3365 MTS during the previous year.
Customized
Fertilizers
The Company sold 16536 MTS during the year, in comparison with sales of 12879 MTS during the previous year.
Specialty Fertilizers
The Company sold 12211 MTS during the year, in comparison with sales of 9226 MTS during the previous year.
Micro-nutrients
The Company sold 5949 MTS during the year, in comparison with sales of 4506MTS during the previous year.
Bio-Products
The Company sold 245 KL during the year, in comparison with sales of 194 KL during the previous year.
Micro-Irrigation
The Company during the year achieved 37.56% growth in sales aggregating Rs.1526.100 Millions as compared with that of the previous year (Rs.1109.400 Millions).
Please note that reference to previous years figures on plant operation pertains to erstwhile NFCL.
Operations in Africa
The Company after a detailed analysis and market research considers it advantageous to explore the opportunities available in Africa. The Company to begin with has set up a branch office in Nairobi, Kenya, to start its International Sales and Marketing operations in East Africa. In the initial stage, it is proposed to market plant nutrients and thereafter foray into Micro-Irrigation systems at a later stage.
The Company is also looking at various options to commence business activity to cater to the markets in West Africa.
The Company in view of the rapidly growing demand for fertilizers, micronutrients and Micro-Irrigation systems, proposes to explore various other countries in Africa in a phased manner.
AWARDS RECEIVED:
1) ‘International Safety Award for Best Safety Performance’ from British Safety Council, UK.
2) ‘Prashansa Patra’ award for the year 2010, from National Safety Council of India.
3) ‘Excellence in Safety for the year 2010 – 11’ from FAI, Delhi.
4) Certificate of Appreciation for implementation of ‘Energy Conservation Measures’ from NREDCAP, Hyderabad.
5) CII Environmental Best Practices Award 2012, under ‘Most Innovative Environmental Project’ category in the Fertilizer Sector for ‘Installation of Dry De-dusting System for improving the dust Control in Urea Plants’ from CII - Godrej GBC, Hyderabad.
6) ‘EHS Excellence Award – 2011’ from CII, Chennai.
7) ICC has granted permission for use of the Responsible Care Logo with effect from June 2011
MANAGEMENT DISCUSSION
AND ANALYSIS
Indian economy review
The Indian economy grew 6.9% in 2011-12 compared with 8.4% in 2010-11 primarily due to weak growth in its industrial sector (3.6% compared with 6.8% in 2010-11), which was influenced by an economic crisis in the United States and the European Union, inflation, interest rate increase, depreciating rupee and rising fuel prices.
Agricultural sector
India’s agricultural sector sustains 58% of the country’s population. The sector grew 2.5% in 2011-12 whereas the government targets to achieve average agricultural growth of 4.2% during the 12th Five-Year Plan (2012-17). This gap is required to be plugged through enhanced farm yield arising from an enhanced use of fertilizers and micro-irrigation facilities. The country’s food grain yield increased from 1,734 kg/ha in 2001-02 to 1,996 kg/ha in 2011-12 even though it is well below the global average of about 3,000 kg/ha. India’s investment in the agriculture and allied sector as a percentage of GDP increased from 13.5% in 2004-05 to 20.1% in 2010-11, even as its contribution to GDP declined from 16.8% in 2007-08 to 13.9% in 2011-12.
Fertilizer sector
The size of India’s fertilizer industry is estimated at Rs.1300000.000 Millions based on the ratio of sales to subsidy of 1:1 and the estimation of subsidy for FY 2010-11. India has 141 fertilizer plants (29 manufacturing urea, 19 DAP and NP/NPK complex, 82 single super phosphate, 10 ammonium sulphate and one calcium ammonium nitrate). Fertilizers improve crop productivity by 40%. The non-plan subsidy to the fertilizer sector alone accounted for Rs.609740.000 Millions, making it imperative to grow domestic fertilizer capacity as imports are costlier than domestic production. Urea accounts for 75% of the nitrogenous fertilizer with a production capacity of 22 million tonnes against a demand of 28 million tonnes. The per hectare fertilizer consumption (kiliogram per hectare of arable land) in India is 142.3 kg/ha compared with 331 kg/ha in China and 524 kg/ha in Israel. India’s fertilizer consumption grew from less than 1 kg/ha in 1951-52 to the current level.
Urea is a controlled commodity under Administrative Price Mechanism and subject to distribution control by the government. The government imports about 6 million tonnes of urea to meet the supply-demand gap. As there is no major competition in the Urea sector, the government brought the P and K sector under the Nutrient Based Subsidy Scheme. This sector is exposed to competition with regard to pricing, sales, procurement, among others. The Company also imports and trades P and K fertilizers while competing with other fertilizer companies in this segment. The key demand drivers of the country’s fertilizer sector comprise the following:
a. Availability of feedstock: The principal input in manufacturing urea is natural gas. Natural gas as feedstock/raw material, accounting for 81% of the country’s urea capacity, which is supplied as per government allocation while the rest is addressed through imported LNG. India’s empowered Group of Ministers (EGOM) prioritized the allocation of natural gas to the country’s fertilizer and power sector. The entire existing available natural gas and KG basin RIL gas has been fully allocated to existing plants based on the policy. One of the reasons for new capacities not being created is due to the non-availability of natural gas.
b. Agro-climatic conditions: The offtake of fertilizers is based on agro-climatic conditions like the timeliness and quantum of rains.
c. Seasonality: Fertilizer consumption peaks during June-August during the kharif season and December-February during the rabi season. Even as fertilizer consumption peaks for six months whereas fertilizer production needs to be continuous, the business requires a warehousing facility during non-peak seasons.
Production: The domestic fertilizer production in India reached 34.6 million tones in 2011-12 of which urea production accounted for 21.8 million tonnes, DAP 3.6 million tonnes and NPK 9.2 million tonnes.
Demand: India’s fertilizer demand during 2011-12 was around 58.69 million tonnes (urea demand 30.51 million tonnes, DAP 12.61 million tonne and complex nutrients 10.73 million tonnes).
Imports: India’s urea segment is under-serviced, with the country importing 6 million tonnes to meet growing demand. This costs the exchequer USD 410-440per tonne, resulting in hefty cross-subsidisation.
Outlook: Fertilizer production globally is likely to grow 9% and reach 37.6 million tonnes in 2012-13 (urea production 23.3 million tonnes, DAP 4.3 million tone and NPK 10 million tonnes). Fertilizer demand in India is likely to be 61.27 million tonnes (urea demand 32 million tonnes, DAP 13.24 million tonne and complex nutrients 11.25 million tonnes).
Micro-irrigation
sector
Though the information on the actual market size of the industry is not authentic due to the unorganized industry, it is estimated that the industry size is around Rs.20000.000 Millions (drip contributes around 70% share and sprinkler 30% share) with annual growth of about 15 to 20%. Fresh water is scarce in India and only 38% of the cultivable land is irrigated. The share of water for the agricultural sector is expected to decline from 85% in 2010 to 71% in 2050. The demand for water in India’s agriculture sector is estimated to increase even as the share of water for agriculture is expected to decline from 85% to 71% by 2050, which makes microirrigation critical to the country’s food security. There are about 196 micro irrigation players in India with Nagarjuna commanding a market share of around 9%. It is among the few companies in India with a product range covering the fertilizer range complemented by drips, sprinklers and PVC pipes. Micro-irrigation is a huge opportunity leading to water savings of around 40-80%, energy savings of 30-35%, yield improvement of 50-100%, fertilizer saving of 30% and labour cost saving of 15-20%. India targets about 3.5 mn ha of land under microirrigation by 2016. The global drip irrigation systems market is expected to grow with depleting water resources at a CAGR of 19% to USD 96.7 million by 2016; the global sprinkler irrigation system market is projected to grow at a CAGR of 17.4% to USD 2,418 million by 2016.
UNSECURED LOAN
|
Particular |
As
on 31.03.2012 (Rs.
in Millions) |
As
on 31.03.2011 (Rs.
in Millions) |
|
Deferred Payment Liabilities |
|
|
|
Sales tax Deferral |
543.121 |
|
|
|
|
|
|
Loans repayable on demand |
|
|
|
From Banks |
|
|
|
In Rupees |
949.403 |
|
|
Total |
1492.524 |
1375.705 |
Sales Tax Deferral:
The Govt. of Andhra Pradesh has extended to the Company, the incentive of
sales tax deferral scheme pursuant to which the sales tax attributable to the
sales effected out of production is deferred (interest-free) for a period of 14
years from March 19, 1998. The deferred sales tax in respect of above
outstanding as on March 31, 2012 is Rs.974.572 Millions based on the sales tax
returns for which repayments commenced from March 19, 2012. There are no
overdue instalments as on the date of this balance sheet.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER/NINE MONTHS ENDED 30th June, 2012
(Rs. In Millions)
|
PARTICULARS |
Three Month Ended |
|
|
30.06.2012 |
|
|
(Unaudited) |
|
|
|
|
Income from operations |
|
|
1. a) Sales/Income from operations |
8197.957 |
|
Less: Excise Duty |
19.234 |
|
Net Sales/Income from operations |
8178.723 |
|
b) Other Operating
Income |
2.053 |
|
Total |
8180.779 |
|
2. Expenses |
|
|
a) Cost of raw materials |
1799.278 |
|
b) Power and Fuel |
1100.208 |
|
c) Purchases of traded
products |
5624.419 |
|
d) (Increase)/Decrease
in stock |
(2434.619) |
|
e) Employees Cost |
281.113 |
|
f) Depreciation and
amortization |
304.310 |
|
g) Other expenditure |
836.106 |
|
Total |
7510.815 |
|
3. Profit(+)/Loss(-)
from Operations before Other Income, Interest & Exceptional Items (1-2) |
669.961 |
|
4. Other Income |
112.380 |
|
5. Profit(+)/Loss(-)
before Interest & Exceptional Items (3+4) |
782.341 |
|
6. Finance Cost |
791.648 |
|
7. Profit(+)/Loss(-)
before Exceptional Items(5-6) |
(9.307 |
|
8. Exceptional Items |
-- |
|
9. Profit(+)/Loss(-) from ordinary activities before Tax (7+8) |
(9.307) |
|
10. Tax Expense |
39.027 |
|
11. Net Profit(+)/Loss(-) from Ordinary Activities after Tax (9-10) |
(48.334) |
|
12. Extraordinary Items |
-- |
|
13. Net Profit for the period (11-12) |
(48.334) |
|
14. Paid-up Equity Share
Capital (Face Value of Rs. 1/- per share) |
598.065 |
|
15. Reserves excluding
revaluation reserve |
-- |
|
16. Earning Per Share
(not annualised) - Rs. - Basic before/after
extraordinary items |
(0.08) |
|
17. Public Shareholding |
|
|
- No. of shares |
290831743 |
|
- Percentage of
shareholding |
48.63% |
|
18.Promoters and
Promoter group Share holding |
|
|
a) Pledged/Encumbered |
|
|
- No. of shares |
129416560 |
|
- Percentage of shares (as
a % of the total shareholding of Promoter and promoter group) |
42.12% |
|
- Percentage of shares
(as a % of the total share capital of the company) |
21.64% |
|
b) Non-encumbered |
|
|
-No. of shares |
177816700 |
|
- Percentage of shares (as
a % of the total shareholding of Promoter and promoter group) |
57.88% |
|
- Percentage of shares
(as a % of the total share capital of the company) |
29.73% |
|
Particular |
Three months ended |
|
30.06.2012 |
|
|
INVESTOR COMPLAINTS |
|
|
Pending at the beginning of the quarter |
NIL |
|
Received during the quarter |
9 |
|
Disposed of during the quarter |
9 |
|
Remaining unresolved at the end of the quarter |
NIL |
Notes:
1. The financial results comprise of the combined operations of the Company relating to Fertilizer, Micro Irrigation, Agri Services and Wind Energy generation businesses of merged entities. The financial results of Micro Irrigation segment, Wind Energy segment and Agri Services segment being less than the limit prescribed for separate disclosure in Accounting Standard 17, have not been shown separately.
1. Income from urea operations is accounted on the basis of prices notified under Stage III New Pricing Policy by the Government of India (GOI) which has been further extended from 01-04-2010 onwards until further orders. Input escalation / de-escalation, freight subsidy and Import Parity Price benefit are accounted in accordance with parameters notified by GOI. Adjustments, if any, required will be considered on notification of final prices.
2. The Bombay Stock Exchange vide letter dated December 14, 2011 approved the application of the company for listing of the equity shares and the National Stock Exchange vide letter dated January 13, 2012 accorded in-principle approval for listing of the equity shares subject to relaxation by Securities and Exchange Board of India (SEBI) from requirements under Rule 19(2)(b) of Securities Contracts (Regulation) Rules, 1957. The relaxation and permission for trading is awaited from SEBI.
3. Tax Expense includes income tax and deferred tax.
4. The operations for the quarter ended June 30, 2011 were carried out by erstwhile Nagarjuna Fertilizers and Chemicals Limited and IKisan Limited, in trust for the company in accordance with Composite Scheme of Arrangement and Amalgamation ('Scheme') as approved by the Hon'ble High Court of Andhra Pradesh and Mumbai.
Comparative figures of said period have not been furnished since the Scheme became effective on July 30th 2011, and made operative from 1st April 2011.
5. The Statutory Auditors have carried out Limited Review of above financial results.
6. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on July 26, 2012.
7. The figures for the quarter ended 31st March, 2012 are the balancing figures between the Audited figures for the full financial year ended 31st March, 2012 and the published year to date figures up to 3d quarter ended 31st December, 2011.
8. Previous quarter / period figures have been re-grouped / re-classified wherever necessary to make them comparable with the current quarter / period.
CONTINGENT
LIABILITIES NOT PROVIDED FOR (AS ON 31.03.2011):
· Counter guarantees given to Bankers in respect of Bank guarantees Rs.946.522 Millions (Previous year Rs.nil)
· Income Tax matters under appeals Rs.118.391 Millions (Previous Year Rs.nil).
· Compensation in respect of 86.55 acres (Previous Year Rs.nil) of land in possession - amount not ascertained.
· Claims against the company not acknowledged as debts Rs.96.118 Millions (Previous year Rs.nil).
FIXED ASSETS
·
Land
·
Buildings
·
Roads, Drains and Culverts
·
Railway Siding
·
Plant and Machinery
·
Furniture, Fixtures and Office Equipment
·
Vehicles
PRESS RELEASES
NFCL REVAMP
MEASURES – PRODUCTION TO GO UP BY 3.71 LAKH METRIC TONNE PER ANNUM UREA
Nagarjuna Fertilizers and Chemicals Limited is operating Natural Gas based
Fertilizer Plants at Kakinada, Andhra Pradesh, which consists of two Units to
produce Urea Fertilizer having a capacity of around 6 Lakhs MT per Annum each.
Unit-I was commissioned in Aug 1992, is fully based on Natural Gas both as feed
and fuel. Unit-II was commissioned in March 1998 and can operate on a mixture
of Naphtha and Natural Gas in varying proportions depending upon the
availability of Natural gas.
In anticipation of availability of additional Natural Gas from RIL KG
Basin D-6 Block, NFCL had initiated Revamp / De-bottlenecking schemes
stage-wise in the year 2006 in order to increase the Capacity, reduce Pollution
and improvement in Energy and Reliability. Accordingly, in Revamp Phase-I,
which mainly consisted of Installation of S-300 Ammonia Converter, replacement
of Synloop Water Cooler, replacement of Air Pre-heater, replacement of HRSG-C
economizer, etc., were implemented in the year 2007-08 with an investment of
Rs. 550.000 Millions and has resulted in Production increase of 50,000 MT per
Annum from Unit-I.
Revamp Phase-II was initiated in the year 2007, mainly to convert
Unit-II fully operational on Natural Gas and to implement de-bottlenecking
measures in order to augment the capacity and to reduce emissions. Accordingly,
CDR Plant was installed and commissioned during Mar 2009. The CDR Plant
recovers Carbon Di-Oxide from Reformer flue gas and there by reduces the
emissions. Revamp of both the plants were also taken up and schemes have been
commissioned on 23rd September 2009 in Unit-I and on 28th September 2009 in
Unit-II. With the measures taken up in Revamp Phase I and Phase-II, the
production capacity has increased to 15.66 Lakh MTPA from 11.95 Lakh MTPA. The
investment for Revamp Phase-II was approx. Rs. 2000.000 Millions.
Apart from de-bottlenecking for capacity enhancement, due thrust has
been given for reduction of specific energy consumption and also enhancement of
reliability of the existing equipment. The energy consumption shall be reduced
from 5.66 Gcal / MT of Urea to 5.50 Gcal / MT of Urea.“Serving Society through
Industry” was the mission of NFCL founder Shri K V K Raju. On the same lines, NFCL taken up these
measures, which will help in making more Urea available to the Farming community,
besides bringing down the subsidy burden to the Govt. of India and also
substantially reducing the Imports of Urea by the Country. The measures taken up for recovery of 450
MTPD of CO2 from flue gases and reduction of energy shall also qualify as
‘Clean Development Mechanism’ projects.
Kakinada, March
24, 2009
NAGARJUNA
FERTILIZERS AND CHEMICALS LIMITED MOVES TOWARDS CLEAN DEVELOPMENT MECHANISM BY
COMMISSIOINING CARBON DIOXIDE RECOVERY (CDR) PLANT AT KAKINADA
Sri K S Raju, Chairman and Managing Director of the Company declared the
Commissioning of Carbon Dioxide Recovery (CDR) Plant of 450 Metric Tonnes Per
Day capacity for commercial use in the existing Urea Production facilities.
This glittering Inauguration ceremony was graced by the Senior Officials of M/s
Mitsubishi Heavy Industries (MHI), Mitsubishi Corporation (MC), Tecnimont ICB
(TICB) and other Senior Executives of the Company and the Government Officials
in the NFCL Plant premises. A Pooja ceremony was performed prior the
Inauguration.
The Order for CDR Plant was placed on MHI, Japan and M/s Tecnimont ICB
(TICB), Mumbai on Lump Sum Turnkey Basis. The scope of MHI was for Basic Know
how and Licensing, while TICB’s scope was for EPC.
NFCL has two Units for the manufacture of Urea Fertilizer with a
capacity of 6 Lakhs MT per Annum each. Unit-I is operated on Natural Gas while
Unit-II is being operated mainly on Naphtha because of the short supply of
Natural Gas from existing sources of GAIL. Anticipating additional Natural Gas
from RIL from the KG Basin reserves, the Order of CDR Plant was placed in July
2007 with a completion schedule of 22 Months that is by May, 2009. The Project
could be completed 2 Months in advance due to the intensive efforts of TICB,
MHI and NFCL. With Commissioning of this CDR Plant, NFCL shall be recovering
450 MTPD of CO2 from the fluegas stack, thus helping the company to be eligible
for Carbon Credits through Clean Development Mechanism.
The company in order to maintain sufficient proportion of CO2 during the
manufacture of Urea and Ammonia consequent to the changeover of feed stack from
naphtha to natural gas has undertaken the installation of the CDR Plant. In
fact CDR Plant forms part of Revamp / De-bottlenecking Phase-II, which is in
the process of execution. The intended De-bottlenecking schemes under Phase-II
will be in place by September 2009. The advantages of this Revamp are given
below:
The CDR Project has been installed under Clean Development Mechanism and
it shall reduce CO2 emission by 450 Metric Tonnes per Day.
The energy norm will improve to 5.500 Gcal / MT of Urea from the present
level of 5.610 Gcal / MT of Urea.
Production level will increase from both Units by about 2.0 Lakhs MT per
Annum.
Naphtha usage will be stopped, which will reduce the Subsidy burden of
the Government.
The additional Production will help to cover up the shortfall of Urea in
the Country, which otherwise, has to be imported at a huge cost.
It is worth noting that NFCL had executed another similar Revamp in the
year 2007-08, which helped to increase the Urea Production capacity by around
50,000 Metric Tonne per Annum. It was informed by NFCL sources that another
Revamp, called Phase-III is in the feasibility study stage, to further augment
the capacity of the Plants.
HYDERABAD,
NOVEMBER 6, 2007.
NFCL WINS
ENVIRONMENTAL PROTECTION AWARD FROM FERTILIZER ASSOCIATION OF INDIA,
For the third time, Nagarjuna Fertilizers and Chemicals Limited has won
the prestigious FAI Environmental Protection Award in the nitrogenous
fertilizer plants category for the year 2006-07. The Annual Award was presented
by the Union Minister for Steel, Chemicals and Fertilizers, Mr Ram Vilas Paswan
to Mr R.S Nanda, Chief Operating Officer in the presence of Mr K.S. Raju,
Chairman and Managing Director, NFCL at the inaugural function of FAI Annual
Seminar held in Delhi on December 5th, 2007. Other important dignitaries shared
the dais while received the Award were Dr J.S. Sharma, Fertilizer Secretary, Mr
U.S. Jha, Chairman, FAI and Mr R.C. Gupta, Deputy Director General, FAI.
NFCL has been honoured for outstanding contribution for the
sustainability of ecological balance at Fertilizer manufacturing Plant,
Kakinada. This Award reflects the collective effort, dedication and commitment
of associates and responsibility of Nagarjuna Fertilizers towards the society.
From its inception, NFCL adopted and maintained international industry
standards by introducing latest technologies for the treatment of waste
materials and maintaining green cover. As a result, NFCL was similarly honoured
with Environmental Protection Award from FAI in 2002 and 2005. NFCL strives to
improvise the standards on continual basis. It is the only Plant to implement
the Process Safety Management Systems (PSMS) on par with international
standards.
The other senior management associates of NFCL participated in the FAI
Annual Award function were Mr P.P. Singh, Director (Technical), Mr R.D. Mall,
Vice-President (Works) and Mr Ramashray Singh, Sr. General Manager (Plant
Operations).
HYDERABAD, AUGUST
17, 2007
Clarifications from Nagarjuna Fertilizers and Chemicals Limited
regarding rumours for the benefit of shareholders and public at large.
KVK PRAGATHI RYTHU
SANMANOTSAVAM
HYDERABAD,
NOVEMBER 9, 2006
Nagarjuna Group is a dream brought into reality by Shri KVK Raju, a
first generation entrepreneur from Andhra Pradesh. Shri KVK Raju was a
visionary with firm belief in his mission to "serve society through
industry". It is this belief, which continues to be the guiding light of
Nagarjuna Group that pioneered several core sector enterprises like
Fertilizers, Energy and Petroleum.
Nagarjuna Fertilizers and Chemicals Limited (NFCL) the flagship company
of the Nagarjuna Group commissioned the first Gas based fertilizer plant in
South India at Kakinada in 1992 and currently has a capacity to produce 12 Lakh
MT of Urea per annum.
Nagarjuna entered the plant protection business in 1994 and within a
short span of time the company has grown to become one of the top five plant
protection companies in India, supplying plant protection technicals and
formulations to many Indian and International companies. Nagarjuna is
manufacturing 8 technicals and 15 formulations with a turnover of Rs 4000.000
Millions (FY06).
Nagarjuna Group started Micro irrigation business in collaboration with
Israeli companies. Nagarjuna is shouldering the responsibility in the Andhra
Pradesh Micro Irrigation Project (APMIP) towards delivering effective water
management solutions to the farmers of Andhra Pradesh. Nagarjuna is also the
first company to introduce the concept of water soluble fertilizers in India in
1995 through tie up with Haifa Chemicals, Israel and is the market leader in
India with sales of about 8000 Mt per annum.
As part of its mission, the group is actively involved in the Micro nutrient
segment by supplying high quality products like Mahazinc (Zinc Monohydrate):
450 MT, Zeta (Zinc EDTA): 150 MT, Groth (Formula 4): 100 MT and Borovin
(Boron): 25 MT. Nagarjuna is also sharing the responsibility of distributing
Zinc Sulphate under the State Government's subsidy scheme to the farming
community.
Nagarjuna is currently supplying about 50% of the State's annual urea
requirement of 2 million tons. Nagarjuna has been nominated as the Lead
Fertilizer Supplier (LFS) by the Government of India in Andhra Pradesh, Orissa
and West Bengal as a coordinator between the Government and the Industry.
Nagarjuna currently markets about 1.9 million tons of urea (including imports).
Apart from the efforts of both State and Central Governments, the fertilizer
industry is also playing an important role in transferring technology to the
farmers. Nagarjuna has taken service to the farmer as a mission since its
inception in 1985 and has earned a strong brand image in Andhra Pradesh and has
since become a part of the farming community of the state.
As a step towards providing a platform to facilitate technology transfer
to farmers KVK KRISHI VIGNANA KENDRAM (KVK) was set up at Kakinada in 1995. The
objective of the center is to transfer technology and impart knowledge on best
agricultural practices like Integrated Nutrition Management, Water Management,
Integrated Pest Management, Post-harvest Management, etc, to farmers, thereby
contributing to improving farm productivity. The centre has state-of-the art training
facilities and is headed by an experienced Agronomist with vast technical and
practical knowledge.
Since its' inception, the KVK centre has trained more than 48000 farmers
from about 416 villages covering all the districts of Andhra Pradesh. Nagarjuna
encourages the KVK trained farmers to act as a guide to his fellow farmers by
sharing their experiences through verbal communication and practice enabling
knowledge dissemination and improvement in farm productivity in a short span of
time.
The KVK centre organizes training programs both On-campus and
Off-campus. In On-campus programs, the selected progressive farmers are brought
to the centre in Kakinada, travel, accommodation and food is provided at the
centre for three days. These farmers are given training on the crop / subject
of their choice by senior scientists pooled from industry, institutions and
universities. The Off-campus programs are organized by arranging visits to the
farmer fields by the Scientists. Based on the observations / specimens, the
Scientists provide advise to farmers enabling them to take immediate preventive
/ correction measures for their crops.
The company has undertaken several extension activities for the benefit
of the farming community. A wide range of technical crop films on paddy,
sugarcane, maize, cotton, chilli and benefits of Zinc usage in crops have been
developed over the past few years enabling the concept of "Seeing is
Believing". The films on Zinc, Sugarcane and Chilly have been adjudged for
awards by the Fertilizer Association of India consecutively for the past three
years. Programs like crop seminars, demonstrations, film shows, soil analysis
etc are extensively organized for transferring enabling technology to the
farmers. Tools like LCD projectors, Slide projectors, AV vans, flip charts,
crop literature etc are widely used for effective communication.
Nagarjuna is strongly committed to the well being of the farming
community of the state and will continue its efforts towards achieving this
objective.
NFCL is organizing KVK Pragathi Rythu Sanmanotsavam, to felicitate
farmers who were trained at KVK Krishi Vignana Kendram and who have played an
important role in improving farm productivity and knowledge sharing. The
programme will be held on Friday 10th November 2006 at 10 am in NFCL premises,
Kakinada, which would be graced by the Chief Minister of Andhra Pradesh,
Honourable Dr. Y S Rajasekhara Reddy and Honourable Ministers from the Centre
and the State, along with other distinguished public representatives and
officers.
NFCL FACILITY
ACHIEVES 113% UREA PRODUCTION
HYDERABAD, APRIL
18, 2006
The Kakinada facility of Nagarjuna Fertilizers and Chemicals Limited
(NFCL), has achieved a record Urea production of 113.1%, producing a total of
13.79 Lakh Metric Tonnes of Urea during 2005-06. The Plant has repeated this
phenomenal feat, producing Urea more than its capacity, for the consecutive
second year. NFCL produces Urea in two units. While the Unit one produced
7,03,645 Metric tonnes, Unit two also surpassed its capacity by producing
6,75,571 Metric tonnes making this phenomenal feat repeated during 2005-06 too.
Total capacity of the Plant is 11,94, 600 Metric tonnes.
The Plant also has achieved this record production at a very optimal
utilization of energy of 5.662 MKcal/MT of Urea against internal target of
5.670Mkcal/MT, which is already much lower than the standard Fertilizer
Industry Coordination Committee's (FICC) norm of 5.712 MKcal/MT. NFCL has one more reason to celebrate that
full production of Urea i.e. 13.79 Lakh Metric Tonnes has been dispatched to
the farmers.
Along with the production, NFCL has also done well in sales and
distribution wings. It's products, which include Mahazinc, Zinc Sulphate, Zeta,
Speciality Fertilizers besides Urea have been sold out fully during 2005-06.
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 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 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. 54.48 |
|
|
1 |
Rs. 82.71 |
|
Euro |
1 |
Rs. 72.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
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 |
|
51 |
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.