MIRA INFORM REPORT
|
Report No. : |
322155 |
|
Report Date : |
15.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
GUJARAT NARMADA
VALLEY FERTILIZERS AND CHEMICALS LIMITED (w.e.f. 10.10.2012) |
|
|
|
|
Formerly Known
as : |
GUJARAT NARMADA VALLEY FERTILIZERS COMPANY LIMITED |
|
|
|
|
Registered
Office : |
P. O. Narmadanagar, District Bharuch - 392015, Gujarat |
|
Tel No : |
91-2264247001 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
10.05.1976 |
|
|
|
|
Com. Reg. No.: |
04-002903 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1554.187 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110GJ1976PLC002903 |
|
|
|
|
IEC No.: |
Not Available |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDG00702C |
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|
|
|
PAN No.: [Permanent Account No.] |
AAACG8372Q |
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|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
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|
Line of Business
: |
Manufacturing and Selling of fertilizers viz. urea,
ammonium nitro-phosphate and calcium ammonium nitrate, chemicals viz.
ammonia, methanol, formic acid, acetic acid, nitric acids and ammonium
nitrate melt and electronics viz. digital switching systems and printed
circuit boards. |
|
|
|
|
No. of Employees
: |
3258 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a jointly promoted by the Government and Gujarat State
Fertilizers and Chemical Limited. It is a well-established and reputed company having a good track record.
Financial position of the company is sound. Fundamentals of the company are
strong and healthy. Trade relations are reported to be fair. Business is active. Payment
terms are reported to be regular and as per commitment. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loans (AA-) |
|
Rating Explanation |
High degree of safety and carry low credit risk. |
|
Date |
June 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non Fund Based Facilities (A1+) |
|
Rating Explanation |
Very strong degree of safety and carry lowest credit risk. |
|
Date |
June 2014 |
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
31-03-2014.
INFORMATION DENIED
MANAGEMENT NON – CORPORATIVE (91-2642-247001)
LOCATIONS
|
Registered Office / Head Office / Factory: |
P. O. Narmadanagar, District Bharuch - 392015, Gujarat, India |
|
Tel. No.: |
91-2642-247001, 247002 (Head Office Bharuch) 91-2642-663626 (Fertilizers Division / Chemical Division) |
|
Fax No.: |
91-2642-247084 / 247057 / 247122 91-2642-247065 (Fertilizers Division / Chemical Division) |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on : 05.08.2014
|
Name : |
Dr. Varesh Sinha, IAS |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Dr. Rajiv Kumar Gupta |
|
Designation : |
Managing Director |
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|
|
|
Name : |
Shri DJ Pandian, IAS |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Hasmukh Adhia, IAS |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri GC Murmu, IAS |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri Atanu Chakraborty, IAS |
|
Designation : |
Director |
|
|
|
|
Name : |
Prof. Arvind Sahay |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri Chandrasekhar Mani |
|
Designation : |
Director |
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|
|
|
Name : |
Dr. TT Ram Mohan |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri JS Kochar |
|
Designation : |
Executive Director |
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|
|
|
Name : |
Shri RA Shah, CFO |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Shri VS Sirohi |
|
Designation : |
Executive Director |
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|
|
|
Name : |
Shri RT Bhargava |
|
Designation : |
Executive Director |
|
|
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|
Name : |
Shri AT Patadia |
|
Designation : |
Executive Director |
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|
|
|
Name : |
Shri JC Bhatt |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Shri PA Manakchand |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Shri RB Panchal |
|
Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on : 31.03.2015
|
Category of
Shareholder |
Total No. of
Shares |
As a % of (A+B+C) |
|
|
||
|
(A) Shareholding of Promoter and Promoter Group |
||
|
|
|
|
|
|
64003713 |
41.18 |
|
|
64003713 |
41.18 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
64003713 |
41.18 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
3310155 |
2.13 |
|
|
21362998 |
13.75 |
|
|
19292516 |
12.41 |
|
|
43965669 |
28.29 |
|
|
|
|
|
|
4046759 |
2.60 |
|
|
|
|
|
|
33475523 |
21.54 |
|
|
9039260 |
5.82 |
|
|
796619 |
0.51 |
|
|
209451 |
0.13 |
|
|
63032 |
0.04 |
|
|
3000 |
0.00 |
|
|
352226 |
0.23 |
|
|
168910 |
0.11 |
|
|
47358161 |
30.47 |
|
Total Public shareholding (B) |
91323830 |
58.76 |
|
Total (A)+(B) |
155327543 |
99.94 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
91240 |
0.06 |
|
|
91240 |
0.06 |
|
Total (A)+(B)+(C) |
155418783 |
100.00 |
Notes:
1.
For determining public
shareholding for the purpose of Clause 40A
2.
For definitions of
Promoter and Promoter Group, refer to Clause 40A.
3.
Public shareholding
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Name
Name of the Shareholder of
the Shareholder |
Details of Shares held |
|
|
No. of Shares held |
No. of Shares held |
|
|
Gujarat State Investments Limited |
3,32,24,546 |
21.38 |
|
Gujarat State Fertilizers & Chemicals Limited |
3,07,79,167 |
19.80 |
|
Total |
6,40,03,713 |
41.18 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Public and holding more than
1% of the total number of shares
|
Name of the
Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
|
Life Insurance Corporation of India |
14083612 |
9.06 |
|
|
Fidelity Puritan Trust - Fidelity low priced stock fund |
13541878 |
8.71 |
|
|
General Insurance Corporation of India |
4540053 |
2.92 |
|
|
The New India Assurance Company Limited |
2090613 |
1.35 |
|
|
Reliance Capital Trustee Co. Limited - Reliance Long term
Equity Fund |
2039975 |
1.31 |
|
|
Fidelity Northstar Fund |
2000000 |
1.29 |
|
|
Total |
38296131 |
24.64 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons (together with PAC) belonging to the category “Public”
and holding more than 5% of the total number of shares of the company
|
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
|
|
Life Insurance Corporation of India |
14083612 |
9.06 |
|
|
Fidelity Puritan Trust - Fidelity low priced stock fund |
13541878 |
8.71 |
|
|
Fidelity Northstar Fund |
2000000 |
1.29 |
|
|
Total |
29625490 |
19.06 |
Details of Depository Receipts (DRs)
|
Type of
Outstanding DR (ADRs, GDRs, SDRs, etc.) |
No. of
Outstanding DRs |
No. of Shares
Underlying |
Shares
Underlying Outstanding DRs as % of Total No. of Shares |
|
GDRs |
18,248 |
91,240 |
0.06 |
|
Total |
18,248 |
91,240 |
0.06 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing And Selling Of Fertilizers Viz. Urea,
Ammonium Nitro-Phosphate And Calcium Ammonium Nitrate, Chemicals Viz. Ammonia,
Methanol, Formic Acid, Acetic Acid, Nitric Acids and Ammonium Nitrate Melt
and Electronics Viz. Digital Switching Systems And Printed Circuit Boards. |
|
|
|
|
Products : |
|
|
|
|
|
Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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|
|
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Imports : |
Not Divulged |
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|
|
|
Terms : |
Not Divulged |
PRODUCTION STATUS = NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
3258 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Million)
Short term borrowings from banks as Cash Credit and Overdraft accounts
of Rs. 5238.547 Million (31-03-2013: Rs. 4730.596 Million) and Short-Term
Loans and Advances from Banks of Rs. 6.245 Million (31-03-2013: Rs. Nil ) are
secured by first charge by way of hypothecation of stocks and book debts and
all other movables, both present and future and further secured by second
charge by way of mortgage on all immovable properties. These charges are
ranking pari-passu among the working capital lenders. (ii) Short term borrowings from banks as Short-Term Loans and Advances
of Rs. 3560.150 Million (31-03-2013: Rs. 996.343 Million) are secured by
hypothecation of assets, for which charge is to be created. The said charge
on the hypothecated assets shall rank as first pari passu charge inter se the
member banks of SBI consortium. |
||||||||||||||||||||||||||||||||||||
|
Statutory Auditors : |
|
|
Name : |
M/S Deloitte Haskins and Sells Chartered Accountant |
|
Address : |
Ahmedabad, Gujarat, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
M/s Diwanji and Associates Chartered Accountants |
|
Address : |
Vadodara, Gujarat, India |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Sister Concern : |
Not Available |
CAPITAL STRUCTURE
As on : 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Rs.10/- each |
Rs. 2500.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
155418783 |
Equity Shares |
Rs.10/- each |
Rs. 1554.188
Million |
|
|
|
|
|
(I)
Terms/ Rights attached to Equity shares:
The Company has only one class of shares, i.e. equity shares which rank
pari passu in all respects. All the equity shares are fully paid up and no
restrictions are attached to equity shares.
(II)
Details of Shareholders holding more than 5% shares
in the Company:
|
Name of the Shareholder |
No. Shares |
% of total
Equity Capital |
|
Gujarat State Investments Limited |
33224546 |
21.38 |
|
Gujarat State Fertilizers & Chemicals Limited |
30779167 |
19.80 |
|
Life Insurance Corporation of India |
14083612 |
9.06 |
|
Fidelity Puritan Trust- Fidelity Low Priced Stock Fund |
11000000 |
7.08 |
Reconciliation of the number of shares outstanding:
|
|
As at 31-03-2014 No. of Shares |
|
Equity Shares at the beginning of the year |
155418783 |
|
Add: Equity Shares issued during the year |
0 |
|
Less: Equity Shares cancelled during the year |
0 |
|
Equity Shares at the end of the year |
155418783 |
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1554.188 |
1554.188 |
1554.188 |
|
(b) Reserves & Surplus |
27901.441 |
25615.201 |
23520.634 |
|
(c) Money
received against share warrants |
11837.324 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
41292.953 |
27169.389 |
25074.822 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
16718.692 |
18186.713 |
7941.385 |
|
(b) Deferred tax liabilities (Net) |
3364.072 |
2358.272 |
2211.572 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
876.038 |
939.122 |
812.609 |
|
Total Non-current
Liabilities (3) |
20958.802 |
21484.107 |
10965.566 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
16781.761 |
10119.732 |
4566.260 |
|
(b) Trade
payables |
2940.317 |
2207.720 |
4662.898 |
|
(c) Other
current liabilities |
9612.548 |
7940.360 |
10582.284 |
|
(d) Short-term
provisions |
1111.100 |
1298.515 |
1041.976 |
|
Total Current
Liabilities (4) |
30445.726 |
21566.327 |
20853.418 |
|
|
|
|
|
|
TOTAL |
92697.481 |
70219.823 |
56893.806 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
48528.617 |
17959.075 |
15917.792 |
|
(ii)
Intangible Assets |
206.302 |
115.749 |
133.754 |
|
(iii)
Capital work-in-progress |
232.519 |
27524.529 |
18672.008 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1321.490 |
1298.402 |
975.626 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
2696.774 |
1196.682 |
2781.664 |
|
(e) Other
Non-current assets |
8510.288 |
0.258 |
0.151 |
|
Total Non-Current
Assets |
61495.990 |
48094.695 |
38480.995 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
8245.864 |
6369.933 |
5992.048 |
|
(c) Trade
receivables |
14547.238 |
11769.909 |
7786.422 |
|
(d) Cash
and cash equivalents |
1734.248 |
2211.931 |
2998.957 |
|
(e)
Short-term loans and advances |
2550.075 |
1773.355 |
1635.384 |
|
(f) Other
current assets |
4124.066 |
0.000 |
|
|
Total
Current Assets |
31201.491 |
22125.128 |
18412.811 |
|
|
|
|
|
|
TOTAL |
92697.481 |
70219.823 |
56893.806 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
48471.881 |
42525.705 |
38620.067 |
|
|
|
Other Income |
450.532 |
403.793 |
300.939 |
|
|
|
TOTAL |
48922.413 |
42929.498 |
38921.006 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
29865.886 |
24683.241 |
21350.695 |
|
|
|
Purchases of Stock-in-Trade |
888.542 |
819.351 |
1493.875 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(387.258) |
(403.275) |
(679.400) |
|
|
|
Employees benefits expense |
2534.867 |
2572.550 |
2839.177 |
|
|
|
Other expenses |
9405.195 |
8921.294 |
8101.565 |
|
|
|
TOTAL |
42307.232 |
36593.161 |
33105.912 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
6615.181 |
6336.337 |
5815.094 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
923.712 |
626.837 |
335.855 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION |
5691.469 |
5709.500 |
5479.239 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
1453.146 |
1485.549 |
1305.253 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX |
4238.323 |
4223.951 |
4173.986 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
1315.600 |
1492.900 |
1335.636 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX |
2922.723 |
2731.051 |
2838.350 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN CURRENCY |
|
|
|
|
|
|
Exports of goods on
FOB Basis |
723.960 |
285.131 |
86.646 |
|
|
|
Technically consultancy and other fees |
0.000 |
10.538 |
0.980 |
|
|
|
TOTAL EARNINGS |
723.960 |
295.669 |
87.626 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
Raw Materials |
1809.783 |
3025.675 |
2304.107 |
|
|
|
Components and Stores parts |
262.033 |
189.775 |
366.884 |
|
|
|
Capital Goods |
341.645 |
189.775 |
755.880 |
|
|
|
TOTAL IMPORTS |
2413.461 |
3405.225 |
3426.871 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
18.81 |
17.57 |
18.26 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
6.03 |
6.42 |
7.35 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT / Sales) |
(%) |
13.65 |
14.90 |
15.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.65 |
10.20 |
11.21 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10 |
0.16 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.81 |
1.04 |
0.50 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.02 |
1.03 |
0.88 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
1554.188 |
1554.188 |
1554.188 |
|
Reserves & Surplus |
23520.634 |
25615.201 |
27901.441 |
|
Net
worth |
25074.822 |
27169.389 |
29455.629 |
|
|
|
|
|
|
long-term borrowings |
7941.385 |
18186.713 |
16718.692 |
|
Short term borrowings |
4566.260 |
10119.732 |
16781.761 |
|
Total
borrowings |
12507.645 |
28306.445 |
33500.453 |
|
Debt/Equity
ratio |
0.499 |
1.042 |
1.137 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
38620.067 |
42525.705 |
48471.881 |
|
|
|
10.113 |
13.983 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
38620.067 |
42525.705 |
48471.881 |
|
Profit |
2838.350 |
2731.051 |
2922.723 |
|
|
7.35% |
6.42% |
6.03% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
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 |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
YEAR IN RETROSPECT
The company
achieved sales turn-over of Rs. 48471.900 Million compared to Rs. 42525.700
Million in the previous Financial Year, registering an increase of 13.98%. The
turnover was higher mainly on account of increased volume of production and
increased sales realization. Profit before Tax was higher at Rs. 4238.300
Million as against Rs. 4224.000 Million of the previous financial year. Profit
after Tax was Rs. 2922.700 Million as against Rs. 2731.100 Million of the
previous financial year.
PERFORMANCE REVIEW
The year 2013-14 was
one of the challenging year for chemical business in the country due to overall
cost increase and moderate industrial growth coupled with increased competition
due to free flow of material from international markets. The company has to
sell its products keeping parity in prices with imports.
In order to get an
edge over competition, a strategy had been formulated by the company during the
year to excel both in production and marketing of its products. Keeping this
strategy in mind, concerted efforts were made to achieve highest production
levels in most of the products with optimum cost. Accordingly, various all-time
best were established during 2013-14.
PRODUCTION
Most plants of the
company operated at over 100% capacity utilization. Ever highest yearly
production was achieved in Ammonia, Ammonia Syngas Generation, Neem coated
Urea, Formic Acid, Methyl formate, Ethyl Acetate, Weak Nitric Acid,
Concentrated Nitric Acid and Captive Power Generation. Total 66 Ever highest of
production were made during 2013-14.
The company
continuously monitors the plant’s operations and implement various modification
schemes, to save energy and to increase plant reliability and production
thereby improving the profitability of the company.
Production of
Calcium Ammonium Nitrate (CAN) was discontinued in view of the same falling
within the ambit of
Ammonium Nitrate
Rules 2012, made effective from 11th January 2014.Consequently, AN
Melt sale was maximized resulting into improved profitability.
SALES
Industrial Products
To supplement the
production efforts, special drive had been made in the marketing of chemical
Industrial Products through innovative marketing, market segmentation and smart
pricing. A niche market has been created for many of its products like Acetic
Acid, Nitric Acid, AN Melt, Aniline and Formic Acid.
Total 35 Ever
highest records of sales were made during 2013- 14. All-time best annual sales
records were made during the year 2013-14 in Weak Nitric Acid, Concentrated Nitric
Acid, AN Melt, export of Methyl Format and Ethyl Acetate. The sale of Ethyl
Acetate at 51360 MTs was significantly higher as compared to previous best of
13837 MT during 2012-13. Similarly AN Melt sale of 127087 MT was significantly
higher compared to previous best of 88493 MT during 2012-13.
There was alround
increase in quantity sold, turn-over, price realization and contribution of
chemical Industrial Products during 2013-14 compared to previous year. This was
possible due to smart and dynamic pricing of the company’s products, keeping a
close watch on cost of production and opportunity to increase price during the
year.
Methanol is
imported in their Country to the tune of about Rs. 1.900 Million MTs per annum.
Out of this, about Rs. 1.400 Million MTs of Methanol is imported from Iran
itself. The company is the largest producer of Methanol in the Country.
However, due to high cost of Natural Gas, the company has been finding it
difficult to compete with the imported material. To offset this disadvantage,
specific efforts were made to finalize a yearly supply contract of Methanol at
very attractive terms with one of the leading producers of Methanol in Iran.
The company has also handled import of Acetic Acid. The other significant
effort made by the company was to stream line AN Melt sale logistics, post
implementation of stringent Ammonium Nitrate Rules, 2012.
Fertilizers
The Fertilizer
business was good through-out the year. The company sold in aggregate Rs.
93.500 Million MTs of fertilizers (both manufactured & traded) during the
year. Out of this, Rs. 69.600 Million MTs of Fertilizers constituting 74% of
the total sales were sold in the primary sales zone comprising Home State
Gujarat and the adjoining States - Maharashtra, Madhya Pradesh and Rajasthan
and more than 1 lac MTs of fertilizers were sold through company’s Narmada Agri
marts in Gujarat during the year. The company continued its trading activities
in Single Super Phosphate (SSP) and commenced trading of indigenously sourced
Di-Ammonium Phosphate (DAP) and Muraite of Potash (MoP) during the year.
(n)Code Solutions
– IT Division
(n)Code Solutions
has continued its growth and expansion in the IT Sector during the year by
achieving record sales of Rs.102.000 Million, registering an increase of 29%
over the previous year, based on strong performance of all its business
segments. It remains the market leader in Digital Certificate business
maintaining about 40% market share.
(n)Code
implemented a unique project on behalf of Bharat Electronics Limited (BEL) for
securing voting data in the Electronic Voting Machines (EVMs) using PKI (Public
Key Infrastructure) Technology. It also implemented a city-wide surveillance
project for Ahmedabad Municipal Corporation, one of the largest such projects
in the Country and received several recognitions and awards in the field of IT.
(n)Code has
undertaken several initiatives during the year in new business lines such as
Cloud Computing,
IT Management
Systems for BRTS, as also Technology based E-Governance Solutions to realize
better growth in the coming years.
STATUS OF PROJECTS
As reported last
year, Ammonia Syngas Generation Project (ASGP) and TDI-II Project at Dahej were
under implementation.
- Ammonia Syngas Generation Project
During the year,
commercial production of ASGP has been declared and the plant has operated at
more than 100% capacity in the first year of its operation.
- TDI-II Dahej Project
The commercial
production of TDI-II Plant has been declared on 24th March 2014. TDI-II Plant, Dahej
has faced the problem of gas emission during the initial production days. For
ensuring the plant worthiness for restarting the plant, hazard operatability
study (HAZOP) was carried out by M/s Lloyds Registers Asia, Mumbai, necessary
modifications were made and the plant was restarted. However, due to complex
and difficult technology, the stabilization of operations of the plant is
taking time, which has created an anxiety for the company. Looking to the cost
of manufacture and prevailing market conditions including price, economic
operation of plant currently seems difficult. Experts in TDI Technology have
been drawn from world-over by M/s Chematur Engineering AB, Sweden, the
technology supplier, to supervise and guide the technical personnel of the company.
An Action Plan has been drawn and is under implementation for restart,
stabilization and economical operation of the plant.
CORPORATE
GOVERNANCE
As per the
requirement of Clause 49 of the Listing Agreement, a Report on Corporate
Governance together with the following are attached herewith and form part of
this Annual Report:
• Declaration on
the Code of Conduct.
• Certificate from
the Practicing Company Secretary with regard to company’s compliance with the
conditions of
Corporate
Governance.
MANAGEMENT
DISCUSSION & ANALYSIS
Management
Discussion & Analysis on the business and operations of the company is
attached herewith and forms part of this Annual Report.
DEMERGER OF V-SAT
/ ISP GATEWAY BUSINESS
As reported last
year, the Scheme of Arrangement and Demerger for transfer of company’s V-SAT /
ISP Gateway
Business to ING
Satcom Limited sanctioned by Hon’ble High Court of Gujarat, is subject to and
conditional upon the approval of Government Authorities for transfer of
Licenses. Applications submitted for transfer of V-SAT
/ ISP Gateway
Business Licenses standing in the name of company to the name of transferee
company viz. ING Satcom Ltd. are pending before the Department of
Telecommunications (DoT), Govt. of India.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY OVERVIEW
Chemical Business:
The Chemical
Industry is among one of the fastest growing sector in India. The bulk of
chemicals produced in India comprise either upstream products or intermediates,
which go into variety of manufacturing applications including fertilizers,
pharmaceuticals, textiles, paints, agrochemicals, dye etc. Imports of various
chemicals are on a rise, as increased/enhanced capacities are not able to cope
up with the increasing demand.
The Indian
chemical sector accounts for 13-14% of total exports and 8-9 % of total imports
of India.
Currently, per
capita consumption of products of the Indian chemical industry is one-tenth of
the world average, which reflects the huge potential for growth.
Fertilizer
Business:
The fertilizer
industry has been passing through difficult time in recent years. Production of
urea, Di-Ammonium
Phosphate (DAP)
& NPK has remained more or less stagnant. The industry’s woes have been
aggravated by factors like lack of clarity in the policy for P&K
fertilizers particularly in relation to priority allocation of domestic gas,
mounting subsidy Bill, imbalance use of Fertilizers and deteriorating soil
health in the Country. However, a better monsoon as compared to the previous
year helped in improved consumption of Urea & Muriate of Potash (MOP).
IT Business:
The sector is
highly innovative, intensely competitive and subject to constant technological
development which is characterized by rapidly changing technology, evolving
industry standards, frequent new product introductions and price and cost
reductions. However, an increasing acceptance of the fact that digital
technologies will impact business models, processes, new products and services
offerings, access to new markets, new customer base and will open up completely
new set of opportunities for their companies, is a common feature across
industries and markets. As a result, spending on technology and technology
services grew at a faster pace (4.5%) than global economic growth in 2013. This
fact reflects the huge potential for growth.
The overall IT
market remains challenging with general slowdown and drying up of foreign
markets making large Indian IT players to aggressively operate in the domestic
market thereby increasing competition.
Awards/
Recognition:
The company has
received following awards/ recognition during the year:
• First Prize for
National Energy Conservation Award 2013, in Fertilizer sector from Ministry of
Power, Government of India.
• An award from
Federation of Indian Chambers of Commerce and Industry for Energy saving in
Primary ODCB Recovery Column of Aniline-TDI plant.
• An award from
the Fertilizer Association of India for
Best Production Performance
in Complex Fertilizers NP/NPK.
• (n)Code has
received eIndia 2013 Awards (Government to Business Category) for Comprehensive
Computerization of Mineral Administration, Department of Mines & Geology,
Government of Karnataka.
• (n)Code has also
received National Awards in IT Excellence for Process Innovation in IT for
Transformation of Mineral & Administration through e-Governance (Geology
& Mining) for Department of Mines & Geology, Government of Karnataka.
OUTLOOK :
In the past few
years, the Company adopted the strategy of expanding the capacities of various
plants which has resulted into optimum utilization of assets with minimum
investment. Business of the company is being consolidated.
Company is
continuously looking for growth avenues and has identified certain projects for
further expansion in the capacities of various products and for the operational
cost reduction.
Chemical Business
:
The outlook for
Chemical Business is positive given its growth and demand over the past few
years. Depending upon market dynamics, the company will explore trading
opportunities to meet the growing needs of its valued customers and maintain
its existing leadership position. Looking to the new capacities added recently,
the
Company has
already identified the primary markets abroad (Middle-East, Turkey, Africa and
South East
Asia) for
expanding its footprints globally, thereby ensuring availability of new market
for TDI, Ethyl Acetate and other products. 50,000 MTPA TDI Dahej plant of the
company has been completed during the year which is facing the teething
problems of stabilization on account of very complex and difficult technology.
However, the Management is confident of stabilizing the plant relying on its
proven track record of technology absorption, adaption and innovation and
technically proficient human resources.
Fertilizer
Business :
Monsoon is delayed
this year. However, company’s fertilizer products have good brand image and
sale of fertilizers is expected to be normal.
Raw materials :
• Increase in
Natural Gas prices is likely to have impact on margin of the company.
• Company’s major
Petroleum inputs are being procured on import price parity basis. International
prices of Petroleum products have remained range bound in vicinity of their
peak levels. It is expected that the prices of these products shall remain
range bound during current financial year.
• The prices of
indigenous coal have increased by about 25% during FY 2013-14 as compared to
prices of FY 2012-13. Further increase in coal prices during the FY 2014-15
cannot be ruled out due to increased demand of power sector and volatile prices
of imported coal in International market.
• Due to higher
inventory of phosphatic fertilizers in the Country and demand-supply gap, the
price of rock phosphate has come down by approx. 15% and shall continue to
remain in the same range in 2014-15.
Price of Ammonia
is likely to remain range bound in the near future.
• Stable Rupee will
help in maintaining cost of imported/ import parity raw materials being
consumed by the company.
STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER, 2014
Standalone statement of profit and loss
(Rs. In Million)
|
Sr. No |
Particulars |
Standalone |
||
|
3 Months ended 31.12.2014 |
Preceding 3 Months ended 30.09.2014 |
Year to date figures for current period
previous year ended 31.012.2014 |
||
|
|
|
|
||
|
Unaudited |
Unaudited |
Unaudited |
||
|
1 |
Income From
Operations |
|
|
|
|
|
a. Net Sales/ Income from Operations (Net of Excise Duty) |
11418.200 |
12935.800 |
34486.200 |
|
|
b. Other Operating Income |
0.000 |
0.000 |
0.000 |
|
|
Total Income from Operations
(Net) |
|
|
|
|
2 |
Expenditure |
|
|
|
|
|
a. Cost of material Consumed |
6280.500 |
7472.100 |
19782.300 |
|
|
b. Purchase of Stock-in trade |
457.000 |
533.600 |
1506.200 |
|
|
c. Power, fuel and other utilities |
1504.800 |
1378.700 |
4136.900 |
|
|
d. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade |
252.100 |
589.000 |
851.400 |
|
|
e. Employees Benefit Expenses |
959.500 |
1073.00 |
2753.900 |
|
|
f. Depreciation and Amortisation Expenses |
514.200 |
519.500 |
1546.600 |
|
|
g. Other expenses |
1318.800 |
1169.100 |
3558.300 |
|
|
Total Expenses |
|
|
|
|
3 |
Profit/(Loss) from
Operations before Other Income, Interest and Exceptional Items |
131.300 |
200.800 |
350.600 |
|
4 |
Other Income |
112.700 |
136.700 |
350.000 |
|
5 |
Profit/(Loss) from
ordinary activities before finance cost & exceptional items |
244.000 |
337.500 |
700.600 |
|
6 |
Finance Costs |
704.300 |
641.200 |
1963.500 |
|
7 |
Exchange Difference Loss / (Gain) (Net) |
0.000 |
0.000 |
0.000 |
|
8 |
Profit/(Loss) from
ordinary activities after finance costs & exceptional items |
(460.300) |
(303.700) |
(1262.900) |
|
9 |
Exceptional items |
0.000 |
0.000 |
0.000 |
|
10 |
Profit/(Loss) from
ordinary activities before tax |
(460.300) |
(303.700) |
(1262.900) |
|
11 |
Tax Expense |
|
|
|
|
|
- Income Tax |
0.000 |
0.000 |
0.000 |
|
|
- Deferred Tax |
0.000 |
0.000 |
0.000 |
|
12 |
Net Profit/(Loss)
from ordinary activity after tax |
(460.300) |
(303.700) |
(1262.900) |
|
13 |
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
14 |
Net Profit/(Loss)
After Tax |
(460.300) |
(303.700) |
(1262.900) |
|
15 |
Paid-up equity share capital (face value of Rs.10 per share) |
1554.200 |
1554.200 |
1554.200 |
|
16 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year |
0.000 |
0.000 |
0.000 |
|
17 |
Earning Per Share (of Rs.10 each) (not annualized) |
|
|
|
|
|
Basic EPS |
(2.96) |
(1.95) |
(8.13) |
|
|
Diluted EPS |
(2.96) |
(1.95) |
(8.13) |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
17 |
Public Shareholding |
|
|
|
|
|
- No. of shares |
91323830 |
91323830 |
91323830 |
|
|
- Percentage of shareholding |
58.76% |
58.76% |
58.76% |
|
18 |
Promoter & Promoter
Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- No. of shares |
-- |
-- |
-- |
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
-- |
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
-- |
-- |
-- |
|
|
b) Non-encumbered |
|
|
|
|
|
- No. of shares |
64003713 |
64003713 |
64003713 |
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
41.81% |
41.81% |
41.81% |
|
|
Particulars |
3 Months ended 31.12.2014 |
|
B |
Investor Complaints |
|
|
|
Pending at the beginning of the quarter |
0 |
|
|
Received during the quarter |
309 |
|
|
Disposed off during the quarter |
309 |
|
|
Remaining unresolved at the end of the
quarter |
0 |
|
Sr. No |
Particulars |
Standalone |
||
|
3 Months ended 31.12.2014 |
Preceding 3 Months ended 30.09.2014 |
Year to date figures for current period
previous year ended 31.012.2014 |
||
|
|
|
|
||
|
Unaudited |
Unaudited |
Unaudited |
||
|
1 |
Income From
Operations |
|
|
|
|
|
|
5755.000 |
6480.600 |
16723.900 |
|
|
|
5480.000 |
6252.000 |
17128.700 |
|
|
|
183.200 |
203.200 |
633.600 |
|
|
Total |
11418.200 |
12935.800 |
13679.600 |
|
|
Less : Inter Segment Revenue |
0.000 |
0.000 |
0.000 |
|
|
Net Sales/Income
from Operations |
11418.200 |
12935.800 |
13679.600 |
|
2 |
Segment Results : (Profit/ (Loss)
before Tax and Finance Cost from each segment) |
|
|
|
|
|
A. Fertilizers |
12.300 |
(213.100) |
(448.500) |
|
|
B. Chemicals |
251.400 |
405.400 |
921.000 |
|
|
C. Others |
45.800 |
59.900 |
133.400 |
|
|
Total |
309.500 |
252.200 |
605.900 |
|
|
Less : (i) Finance Cost |
704.300 |
641.200 |
1963.600 |
|
|
(ii) Other Unallocable Expenditure |
178.200 |
50.500 |
255.300 |
|
|
(iii) Unallocable Income |
(112.700) |
(135.800) |
(350.000) |
|
|
Total Profit/
(Loss) Before Tax |
(460.300) |
(303.700) |
(1262.900) |
|
|
|
|
|
|
|
3 |
Capital Employed : (Segment Assets – Segment Liabilities) |
|
|
|
|
|
|
28435.000 |
22007.700 |
28435.000 |
|
|
|
28676.900 |
31770.700 |
28676.900 |
|
|
|
468.100 |
476.200 |
468.100 |
|
|
|
(29520.400) |
(25734.700) |
(29520.400) |
|
|
|
|
|
|
|
|
Total |
28059.600 |
28519.900 |
28059.600 |
|
Notes : 1. In Q2 and 9 months of FY 2013-14, the
Company had manufacturing operations at Bharuch only. In the current
reporting periods TDI Plant at Dahej was not operative due to gas emission, subsequent
corrective steps and teething problems. TDI Dahej plant has been successfully
restarted in last week of the Quarter. In current reporting periods,
production from TDI Dahej Plant covers full fixed costs and operative costs.
Major investment has led to increase in finance costs of Bharuch operations
also. The details of Profit before Tax of TDI Dahej Plant and other
operations of the Company are as under: |
||||
|
|
|
Q3 of FY 2014-15 |
Q2 of FY 2014-15 |
9 Months of FY 2014-15 |
|
|
Profit / (Loss)
from Ordinary Activities before Tax |
|
|
|
|
|
- TDI Dahej Plant |
(1071.700) |
(1028.700) |
(3107.400) |
|
|
-
Other
Operations |
611.400 |
725.000 |
1844.500 |
|
Q3 and 9 Months
of FY 2013-14 included additional subsidy revenue of Rs. 86.6 crore.
|
||||
UNSECURED LOAN
(Rs.
In Million)
|
Particulars |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
LONG TERM
BORROWING |
|
|
|
Rupee Term Loan From Bank |
0.000 |
80.038 |
|
Rupee Term Loan From other |
3000.000 |
3200.000 |
|
Total |
3000.000 |
3280.038 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10384762 |
27/06/2013 * |
15,050,000,000.00 |
SBICAP TRUSTEE COMPANY LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, Maharashtra -
400005, INDIA |
B80007164 |
|
2 |
10270315 |
28/02/2012 * |
11,545,300,000.00 |
SBICAP TRUSTEE COMPANY LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, Maharashtra -
400005, INDIA |
B34378125 |
|
3 |
10178704 |
26/09/2009 |
800,000,000.00 |
DENA BANK |
Manilal Chambers, Alkapuri, Vadodara, Gujarat - 390005, INDIA |
A70984190 |
|
4 |
80004923 |
23/02/1999 |
655,800,000.00 |
BANK OF BARODA |
BHARUCH, BHARUCH, Gujarat - 392015, INDIA |
- |
|
5 |
90109781 |
13/02/2002 * |
937,000,000.00 |
BANK OF BARODA |
INDL. ESTATE BRANCH, OPP. SHITAL GUEAT HOUSE; OLD |
- |
|
6 |
80052774 |
30/03/1998 |
34,000,000.00 |
STATE BANK OF INDIA |
STATION ROAD, BHARUCH, Gujarat - 392001, INDIA |
- |
|
7 |
90109682 |
13/10/1997 |
180,000,000.00 |
BANK OF BARODA |
INDL. ESTATE BRANCH, OPP. SHITAL GUEAT HOUSE; OLD |
- |
|
8 |
90103695 |
27/03/2015 * |
16,000,000,000.00 |
Bank of Baroda |
GNFC Complex Branch, P.O. Narmadanagar-392 015, Bharuch, Gujarat -
392015, INDIA |
C49351422 |
|
9 |
80004914 |
31/12/1996 |
61,950,000.00 |
BANK OF BARODA |
BHARUCH, BHARUCH, Gujarat - 392015, INDIA |
- |
|
10 |
90109371 |
31/03/1997 * |
89,000,000.00 |
BANK OF BARODA |
INDL ESTATE BRANCH, OPP. SHITAL GUEAT HOUSE; OLD |
- |
* Date of charge modification
CONTINGENT LIABILITIES
|
Claims against the Company not acknowledged as debts (mainly on account
of water charges) |
296.463 |
|
Claims in respect of employees’/ contract labour matters |
0.000 |
|
Income tax assessment orders contested |
238.917 |
|
Demands in respect of Central Excise Duty, Service Tax and VAT as
estimated by the Company |
943.904 |
FIXED ASSETS
Tangible Assets:
- Lease Hold Land
- Free Hold Land
- Buildings
- Plant and Equipment
- Furniture and Fixtures
- Vehicles
- Office Equipment
- Roads, Culverts & Compound Wall
- Railway Sidings
- Water Supply & Drainage System
Intangible Assets:
- Goodwill
- Softwares
- Licences
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON DESIGNATED
PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.83 |
|
|
1 |
Rs.100.64 |
|
Euro |
1 |
Rs.72.87 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
RNK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILITY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
69 |
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.