MIRA
INFORM REPORT
|
Report Date : |
04.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
FERTILISERS AND CHEMICALS TRAVANCORE LIMITED |
|
|
|
|
Registered
Office : |
Eloor, P O Udyogmandal, Alwaye, Ernakulam – 683501, Kerala |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
22.09.1943 |
|
|
|
|
Com. Reg. No.: |
000371 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.6470.720 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24129KL1943GOI000371 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHNF00418F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT6204C |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on the
Stock Exchange. |
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|
|
|
Line of Business
: |
Manufacturer of Fertilisers and Petrochemicals |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6500000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
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|
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|
Litigation : |
Clear |
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|
Comments : |
Subject is a large fertilizers manufacturing company, owned by the
Government of India. It is a well established company having a moderate track record. There
appears accumulated losses recorded by the company. However, the company has performed well during the current year. As
the subject is a Government of India undertaking lenders and creditors can
feel comfortable for its exposure. In view of strong holdings the company can be considered for normal
business dealings at usual trade terms and condition |
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 |
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.
LOCATIONS
|
Registered Office : |
Eloor, P O Udyogmandal, Alwaye, Ernakulam – 683501,
Kerala, India |
|
Tel. No.: |
91-484-541101/541104 |
|
Fax No.: |
91-484-532475 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Sham Lal Goyal |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. V. K. Anil |
|
Designation : |
Director (Technical) (w.e.f 28.06.2011) |
|
|
|
|
Name : |
Dr. V. Rajagopalan |
|
Designation : |
Part-time official Director (w.e.f 12.08.2011) |
|
|
|
|
Name : |
Mr. Satish Chandra |
|
Designation : |
Part-time official Director (upto 12.08.2011) |
|
|
|
|
Name : |
Ms. Pratibha Karan |
|
Designation : |
Non-official Part-time Director (up to 03.10.2011) |
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|
|
|
Name : |
Prof. Khan Masood Ahmad |
|
Designation : |
Non-official Part-time Director (up to 03.10.2011) |
|
|
|
|
Name : |
Dr. B. S. Ghuman |
|
Designation : |
Non-official Part-time Director (up to 03.10.2011) |
|
|
|
|
Name : |
Mr. S. Balan |
|
Designation : |
Non-official Part-time Director (up to 04.03.2012) |
|
|
|
|
Name : |
Mr. P. Muthusamy |
|
Designation : |
Director (Finance |
|
|
|
|
Name : |
Mr. P. K. Chandrasekharan |
|
Designation : |
Director (Marketing) (w.e.f 30.11.2011) |
|
|
|
|
Name : |
Mr. S. C. Gupta |
|
Designation : |
Part-time Official Director (w.e.f 12.08.2011) |
|
|
|
|
Name : |
Mr. V. G. Sankaranarayanan |
|
Designation : |
Director (Technical) (upto 30-4-2011) |
|
|
|
|
Name : |
Mr. T. M. Jeyachandran |
|
Designation : |
Non-official Part-time Director |
|
|
|
|
Name : |
Prof. R. K. Mishra |
|
Designation : |
Non-official Part-time Director (up to 03.10.2011) |
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|
|
|
Name : |
Dr .B. Bodeiah |
|
Designation : |
Non-official Part-time Director (up to 04.03.2012) |
KEY EXECUTIVES
|
Name : |
Mr. K. V. Balakrishnan Nair |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. J. Vinanyan |
|
Designation : |
Chief Vigilance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Names of Shareholders |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
637765200 |
98.56 |
|
|
637765200 |
98.56 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
637765200 |
98.56 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4840 |
0.00 |
|
|
2585000 |
0.40 |
|
|
915390 |
0.14 |
|
|
3505230 |
0.54 |
|
|
|
|
|
|
672765 |
0.10 |
|
|
|
|
|
|
3634872 |
0.56 |
|
|
478078 |
0.07 |
|
|
1015829 |
0.16 |
|
|
152125 |
0.02 |
|
|
221366 |
0.03 |
|
|
642038 |
0.10 |
|
|
300 |
0.00 |
|
|
5801544 |
0.90 |
|
Total Public shareholding (B) |
9306774 |
1.44 |
|
Total (A)+(B) |
647071974 |
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) |
647071974 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Fertilisers and Petrochemicals |
|
|
|
|
Products : |
Fertiliser · Ammonium Phosphate · Ammonium Sulphate · Mixtures · MOP · Urea Petrochemical ·
Caprolactam |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· State Bank of Travancore · State Bank of Hyderabad · State Bank of India · Canara Bank ·
Dena Bank |
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Facilities : |
(Rs.
In Millions)
Notes: · Repayable in 10 equal yearly instalments after 2 year's moratorium. Defaulted payment of Rs.425.000 Millions (Previous year Rs.293.000 Millions) towards principal from the year 2007-08 and interest (@ 11.50% / 12.50% P.A.) Rs.727.289 Millions (Previous year Rs.465.000 Millions) from 2006-07. Defaulted amounts along with instalments due during the succeeding year has been shown under other current liabilities. · Repayable on maturity period of 1/2/3 years. No default in payment of principal and interest (Previous year Rs. Nil). Rate of interest varies from 9% to 11% P.A. All outstanding amounts as on 31.03.2012 are due during the year 2012-13 and has been shown under Other current liabilities |
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Banking
Relations : |
-- |
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|
|
|
Statutory Auditors
: |
|
|
Name : |
Babu A Kallivayalil and Company Chartered Accountants |
|
Address : |
Kochi, Karla, India |
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|
|
|
Branch Auditors 1 : |
|
|
Name : |
R. Sadasivan and Company Chartered Accountants |
|
Address : |
Chennai, Tamilnadu, India |
|
|
|
|
Branch Auditors 2 : |
|
|
Name : |
Ramanatham and Rao Chartered Accountants |
|
Address : |
Hyderabad, Andhra Pradesh, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Sukumaran and Company Cost Accountants |
|
Address : |
Thiruvananthapuram, Kerala, India |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs.10000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
647071974 |
Equity Shares |
Rs.10/- each |
Rs.6470.720
Millions |
|
|
|
|
|
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 |
6470.720 |
6470.720 |
6470.720 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
8.311 |
|
|
4] (Accumulated Losses) |
(4848.243) |
(5045.866) |
(4560.536) |
|
|
NETWORTH |
1622.477 |
1424.854 |
1918.495 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4385.787 |
6521.806 |
8549.257 |
|
|
2] Unsecured Loans |
2180.310 |
2202.312 |
2239.315 |
|
|
TOTAL BORROWING |
6566.097 |
8724.118 |
10788.572 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8188.574 |
10148.972 |
12707.067 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2775.415 |
3160.219 |
3634.983 |
|
|
Capital work-in-progress |
230.280 |
87.046 |
164.186 |
|
|
|
|
|
|
|
|
INVESTMENT |
182.315 |
1384.006 |
2813.015 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
OTHER NON-CURRENT ASSETS |
55.532 |
50.540 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7596.181
|
6137.475 |
5758.437 |
|
|
Sundry Debtors |
112.539
|
484.578 |
612.486 |
|
|
Cash & Bank Balances |
701.710
|
552.308 |
281.828 |
|
|
Other Current Assets |
5541.954
|
4097.079 |
4567.986 |
|
|
Loans & Advances |
1864.842
|
1779.625 |
1584.099 |
|
Total
Current Assets |
15817.226
|
13051.065 |
12804.836 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5353.730
|
3168.049 |
4249.303 |
|
|
Other Current Liabilities |
3266.576
|
2384.935 |
1441.241 |
|
|
Provisions |
2251.888
|
2030.920 |
1019.409 |
|
Total
Current Liabilities |
10872.194
|
7583.904 |
6709.953 |
|
|
Net Current Assets |
4945.032
|
5467.161 |
6094.883 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8188.574 |
10148.972 |
12707.067 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
28760.483 |
24607.263 |
21059.223 |
|
|
|
Other Income |
367.017 |
305.991 |
536.132 |
|
|
|
TOTAL (A) |
29127.500 |
24913.254 |
21595.355 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
17491.801 |
14287.907 |
|
|
|
|
Purchases of Stock-in-trade |
1348.479 |
925.703 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and Stock-in-trade. |
(485.876) |
(17.857) |
|
|
|
|
Employee benefits expense |
2252.357 |
2680.460 |
|
|
|
|
Other expenses |
6529.210 |
5587.948 |
|
|
|
|
Exceptional items |
0.000 |
82.115 |
|
|
|
|
TOTAL (B) |
27135.971 |
23546.276 |
21229.944 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1991.529 |
1366.978 |
365.411 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1367.658 |
1433.973 |
1159.728 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
623.871 |
(66.995) |
(794.317) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
425.890 |
426.272 |
242.717 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
197.981 |
(493.267) |
(1037.034) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
1.317 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
197.981 |
(493.267) |
(1038.351) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(5053.803) |
(4560.536) |
(3522.185) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(4855.822) |
(5053.803) |
(4560.536) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1538.901 |
1341.667 |
921.579 |
|
|
|
Other Earnings |
0.000 |
2.718 |
0.000 |
|
|
TOTAL EARNINGS |
1538.901 |
1344.385 |
921.579 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
11292.322 |
7706.904 |
9288.083 |
|
|
|
Stores & Spares |
19.400 |
14.824 |
16.217 |
|
|
|
Capital Goods |
0.176 |
6.254 |
0.528 |
|
|
TOTAL IMPORTS |
11311.898 |
7727.982 |
9304.828 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
0.31 |
(0.76) |
(1.60) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
Audited / UnAudited |
|
UnAudited |
UnAudited |
|
Net Sales |
|
5221.200 |
7191.400 |
|
Total Expenditure |
|
5840.100 |
7017.700 |
|
PBIDT (Excl OI) |
|
(618.900) |
173.700 |
|
Other Income |
|
37.800 |
2.200 |
|
Operating Profit |
|
(581.100) |
175.900 |
|
Interest |
|
349.800 |
335.900 |
|
Exceptional Items |
|
00 |
00 |
|
PBDT |
|
(930.900) |
(160.000) |
|
Depreciation |
|
110.600 |
102.600 |
|
Profit Before Tax |
|
(1041.500) |
(262.600) |
|
Tax |
|
00 |
00 |
|
Provisions and contingencies |
|
00 |
00 |
|
Profit After Tax |
|
(1041.500) |
(262.600) |
|
Extraordinary Items |
|
00 |
00 |
|
Prior Period Expenses |
|
00 |
00 |
|
Other Adjustments |
|
00 |
00 |
|
Net Profit |
|
(1041.500) |
(262.600) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
0.68 |
(1.98) |
(4.81) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.69 |
(2.00) |
(4.92) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.06 |
3.04 |
6.31 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12 |
(0.35) |
(0.54) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
10.75 |
11.45 |
9.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.45 |
1.72 |
1.91 |
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 |
No |
|
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 |
No |
|
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 |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
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 |
PERFORMANCE
The performance of the company during the year 2011-12 was satisfactory. The company was able to maintain the production and sales at a reasonable level and earn a marginal profit. Financial results of the company for the year 2011-12 shows a Profit of Rs.198.000 Millions as against the loss of Rs.493.200 Millions during the year 2010-11.
During the financial year 2011-12, the company has faced several constraints in the production and marketing front.
The production of finished products has come down during the year as compared to the previous year. The main reason for adverse variation in production is constraint in the availability of Phosphoric Acid and the unexpected shutdown of ammonia plant on account of Carbon Di-oxide absorption section failure. The lower production has resulted in lower sales volume.
Low production and sales volume have affected the financial performance of the company. Steep increase in the prices of raw materials and intermediates has also affected the financial performance of the company adversely. Due to aging of plants, the company continues to incur considerable amount towards repairs and maintenance. The adverse impact of the exchange rate variation has also affected the profitability of the company. The adverse effect of exchange rate variation in the financial year 2011-12 is Rs.123.800 Millions as against a favourable effect of Rs.113.200 Millions during the year 2010-11.
However, marginal reduction in the interest and finance charges, improvement in the working capital position and net-worth are the silver lines in the performance of the company in the financial front.
As compared to the previous year, the company is able to achieve a reduction of Rs.66.300 Millions in the interest and finance charges. This is due to the lower utilization of bank limit and the reduction in interest rates. The net-worth of the company has also increased to Rs.1614.800 Millions as against a net-worth of Rs.1416.900 Millions as on 31.3.2011.
In order to improve the turnover and profitability, the company is concentrating also on marketing of traded products. During the year 2011-12, FACT has handled 56696 MT of imported Urea and 39430 MT of MOP at Cochin Port.
Prior to the financial year 2007-08, in the absence of viable market for Gypsum, the company did not value Gypsum stock in the books of accounts. Based on the qualification of the statutory auditors during 2007-08, the company started valuing Gypsum stock at net realizable value considering the estimated sales quantity of 5 years, out of the total stock available with the company. Based on the qualification of statutory auditors with regard to valuation of Gypsum on the accounts of 2010-11, opinion of Expert Advisory Committee of the Institute of Chartered Accountants of India was obtained as advised by the Principal Director of Commercial Audit and Ex-Officio Member Audit Board.
Accordingly, the company has valued the entire saleable quantity of Gypsum as against the 5 years sales quantity.
To promote Integrated Plant Nutrient Management, FACT is expanding the sale of organic manure to the States of Kerala and Tamil Nadu. During the year 201112, FACT has sold 5150 MT of organic manure. The company has sold 36772 MT Bagged Gypsum in the year 2011-12 compared to 38051 MT during the year 2010-2011. The company has plans to sell 50,000 MT of bagged Gypsum during the year 2012-2013.
The performance of the company during the first quarter of the financial year 2012-13 is not encouraging. The shut down of plants during April and May 2012 for Annual Maintenance has affected the production of finished products. Constraints in the availability of Phosphoric Acid continue to affect the production performance of the company for the year 2012-13. However, during the first quarter the production of Factamfos in Cochin Division was higher compared to the corresponding quarter of the previous year.
The company expects some improvement in performance in the coming months and expects to end the financial year 2012-13 with positive working result.
The additional compensation for use of Naphtha in the production of Ammonia has been allowed by the Government only upto 31.3.2012. The company expects Government notification on additional compensation for use of Naphtha in the year 2012-13 also.
The Joint Venture Company - FACT-RCF Building Products Limited - has started commercial production with effect from 1st June 2012.
FERTILIZER INDUSTRY
Agriculture plays a significant role in the development of socio economic sector in India. Chemical Fertilizer Industry has played an important role in rejuvenating India's Agriculture Sector which provides livelihood to nearly 60% of the work force and making the country self reliant in food grain production thereby ensuring food security of the nation. Increased usage of fertilizers has resulted in increase in agriculture productivity. Over the years, the consumption of fertilizers in the country has risen steadily, while the indigenous production of fertilizers has not increased likewise to meet the growing requirement.
India is completely lacking in potasic resources and deficient in phosphate resources. Over dependence on import, exchange rate variation of Indian rupee, non-availability of cheap feed stock like NG/LNG are the biggest challenges being faced by Indian Fertilizer Industry.
The implementation of the nutrient based subsidy with effect from 01.04.2010 has promoted balanced nutrient application and the use of micro nutrients which helps in increasing the productivity and restoring the health of soil.
Availability of feedstock like NG / LNG at a uniform price ensuring a level playing field for all manufacturers of fertilizers in India will help the growth and development of this vital industry. The growth of the Fertilizer industry maintaining a synergy between production and adoption of best practices which focuses on conservation of environment, energy and clean development is a must for achieving food security and overall development of the country.
AWARDS AND
RECOGNITIONS
During the year 2011-12, the Company has been honoured with many awards and laurels.
Udyogaqmandal Division has been awarded the First Prize for outstanding performance in Group 1(a) major chemical industries worked more than 1.5 million manhours for the year 2011 from the National Safety Council of India, Kerala Chapter. This is the second year in succession Udyogamandal division has been bagging this coveted award.
Cochin Division received the runner up award for outstanding performance in Industrial Safety by achieving the lower frequency rate of accidents in the group of very large size chemical industries constituted by National Safety Council, Kerala Chapter.
FACT has successfully implemented a new ERP system SAP within a short period and won Award for Customer Excellence from among the Public Sector Organisations.
FACT has won First Place among the 38 PSUs coming under the auspices of Cochin Town Official Language Implementation Committee for the year 2011 for the progressive use and successful implementation of Hindi in FACT. FACT Official Language Magazine "RASHTRAVANI" has been awarded second prize among the magazine of Cochin TOLIC.
CONTINGENT
LIABILITY:
(Rs.
In Millions)
|
Particulars
|
31.03.2012 |
31.03.2011 |
|
(i) Claims against the company pending before various legal/ statutory authorities and not acknowledged as debts in respect of: |
|
|
|
a) Excise Duty |
7.256 |
6.379 |
|
b) Service Tax |
7.596 |
5.147 |
|
c) Sales Tax / Entry tax |
47.220 |
44.697 |
|
d) Customs Duty |
4.004 |
4.004 |
|
e) Income Tax |
15.148 |
59.934 |
|
f) ESI |
22.127 |
21.816 |
|
g) Suppliers and contractors The contract for the barge transportation of Ammonia awarded to a private company has been cancelled void ab initio during 2004-05 by the Company. The Contractor’s claim for shortfall charges (for the period 01.04.2003 to 22.04.2008) and damages for Rs.17810.142 Millions (Previous year Rs.17771.307 Millions )which is pending before the Arbitrator has not been provided in the accounts and is included under Contingent liabilities based on the assessment of the management. |
17836.050 |
17956.957 |
|
h) Others |
51.194 |
37.582 |
|
|
|
|
|
(ii) Excise duty demand of on purchase of Raw material, pending appeal, has not been considered since the liability rests with supplier as per order terms. |
2.852 |
2.642 |
|
|
|
|
|
(iii) Guarantees given to various clients\ statutory authorities for performance of contracts\ obligations are not included, as the money value thereof cannot be ascertained. In addition company has provided Corporate Guarantee for the term loan of M/s FACT-RCF Building Products Ltd. However the share of term loan exposure as on 31.03.2012 is Rs.73.240 Millions (50% of total loan exposure of Rs.146.481 Millions). |
175.000 |
175.000 |
|
|
|
|
|
(iv) The contingent liability in respect of bills discounted with banks is fully covered by buyers’ letter of credit |
734.318 |
629.709 |
FIXED ASSETS:
· Land
· Buildings
· Plant and Equipment
· Furniture and Fixtures
· Vehicles
· Office equipment
· Computer Software
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.54.42 |
|
|
1 |
Rs.88.29 |
|
Euro |
1 |
Rs.71.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
42 |
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.