MIRA INFORM REPORT

 

 

Report No. :

348947

Report Date :

16.11.2015

 

IDENTIFICATION DETAILS

 

Name :

DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED

 

 

Registered Office :

Opposite Golf Course, Shastri Nagar, Yerawada, Pune - 411006, Maharashtra

Tel. No.:

91-20-2668 8117

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

31.05.1979

 

 

Com. Reg. No.:

11-021360

 

 

Capital Investment / Paid-up Capital :

Rs.882.049 Million

 

 

CIN No.:

[Company Identification No.]

L24121MH1979PLC021360

 

 

IEC No.:

Not Available

(As claimed by company management that company does not export and import)

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMD10002G

 

 

PAN No.:

[Permanent Account No.]

AAACD1388D

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject produces and sells industrial chemicals and fertilizers.

It operates through Chemicals, Bulk Fertilisers, Realty, and Others.

·         The Chemicals segment offers ammonia, methanol, dilute nitric acid, concentrated nitric acid, liquid carbon di-oxide, strong nitric acid, TAN, ISO propyl alcohol, propane, and bulk and specialty chemicals.

·         The Bulk Fertilisers segment provides NP, MOP, DAP, ammonium sulphate, mixtures, SSP, sulphur, micronutrients, SSF, bio fertilizers, fruits, vegetables, and pesticides.

·         The Realty segment is involved in the real estate business.

·         The Others segment generates power through windmills.

·         The company also provides agri-lab services comprising soil testing, plant tissue, water, and organic fertilizers samples.

 

 

No. of Employees :

1486 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (59)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

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

Fairly Large

 

Maximum Credit Limit :

USD 44000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject was incorporated in the year 1979 and it is one of the leading manufacturers of Industrial chemicals and fertilizers in India. It is a flagship company of Deepak Group of Companies, which has presence in fertilisers and chemicals. The company operates in three business segments-Chemicals, Fertilisers and Realty.

 

The rating takes into consideration sound financial risk profile of the company marked by strong networth base and comfortable debt level of the company in the year 2015. However, the company has reported marginal decrease in its sales and profit leading to decrease in profit margin over previous year.

 

However, the rating derive strength from the established market position and long track record of operations of the company.

 

Trade relations are fair. Business is active. Payment terms are reported to be regular and as per the commitments.

 

In view of aforesaid, the company can be considered for business dealings with usual trade terms and conditions.

 

NOTES :

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

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

 

Rating Agency Name

CARE

Rating

Long Term Instruments-NM-Non-Convertible Debenture = AA-

Rating Explanation

High degree of safety and very low credit risk

Date

20.10.2015

 

 

Rating Agency Name

CARE

Rating

Commercial Paper Issue = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk

Date

20.10.2015

 

 

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 31-03-2015.

 

 

LOCATIONS

 

Registered office:

Opposite Golf Course, Shastri Nagar, Yerawada, Pune -411006, Maharashtra, India

Tel. No.:

91-20-2668 8117

Mobile No.:

91-9822209351 (Mr. Sanjay Gundi)

Fax No.:

91-20-2668 3723

E-Mail :

 investorgrievance@deepakfertilsers.com

Website :

 http://www.dfpcl.com 

 

 

Corporate Office :

Sai Hira, Survey No. 93, Mundhwa, Pune - 411 036, Maharashtra, India

Tel No.:

91-20-6645 8000

 

 

Factory :

Plot No. K-1, K-7 and K-8, MIDC Industrial Area, Taloja, A. V., District Raigad – 410208, Maharashtra, India

Tel. No.:

91-22-67684000

Fax No.:

91-22-27412413

E Mail:

arumugamg@deepakfertilisers.com

 

 

Marketing / Project Office :

Plot No. 32, Sector 16, Opposite Modern College, Vashi, Navi Mumbai - 400703, Maharashtra, India

 

 

Branch Office :

Located At Delhi, India

 

 

Area Offices :

Located at:

 

  • Akola
  • Nagpur
  • Nashik
  • Aurangabad
  • Hubli
  • Kolkata
  • Hyderabad

 

 

DIRECTORS

 

As on 31.03.2015

 

Name :

Mr. S. C. Mehta

Designation :

Chairman and Managing Director

 

 

Name :

Mr. Partha Bhattacharyya

Designation :

Executive Director

 

 

Name :

Mr. R. A. Shah

Designation :

Director

Date of Birth / Age :

83 Years

Qualification :

B.A., L.L.B., Solicitor

Date of Appointment :

26.12.1979

 

 

Name :

Mr. D. Basu

Designation :

Director

Date of Birth / Age :

79 Years

Qualification :

M.A. (Economics)

Date of Appointment :

27.07.2000

 

 

Name :

Mr. N. C. Singhal

Designation :

Director

Date of Birth / Age :

78 Years

Qualification :

M.A. (Economics), M.Sc. (Statistics), P.G. Diploma in Public Administration

Date of Appointment :

25.03.1997

 

 

Name :

Mr. U. P. Jhaveri

Designation :

Director

Date of Birth / Age :

69 Years

Qualification :

B.E. (Chemical)

Date of Appointment :

21.10.2004

 

 

Name :

Mr. S. R. Wadhwa

Designation :

Director

Date of Birth / Age :

79 Years

Qualification :

M.A., L.L.M., CAIIB, Masters Diploma in Public Administration

Date of Appointment :

18.10.2005

 

 

Name :

Dr. S. Rama Iyer

Designation :

Director

Date of Birth / Age :

75 Years

Qualification :

B.E.(Chemical), M. Tech. and Ph.D. from IIT, Mumbai

Date of Appointment :

23.10.2007

 

 

Name :

Mrs. Parul S. Mehta

Designation :

Director

Date of Birth / Age :

50 Years

Qualification :

B.Com.

Date of Appointment :

20.10.2005

 

 

Name :

Mr. Anil Sachdev

Designation :

Director

Date of Birth / Age :

60 Years

Qualification :

B.Sc., MBA

Date of Appointment :

23.10.2008

 

 

Name :

Mr. Pranay Vakil

Designation :

Director

Date of Birth / Age :

68 Years

Qualification :

B.Com., C.A., L.L.B., FRICS

Date of Appointment :

25.05.2010

 

 

KEY EXECUTIVES

 

Name :

Mr. C. K. Mehta

Designation :

Chairman Emeritus

 

 

MANAGEMENT TEAM :

 

 

 

Name :

Mr. Somnath Patil

Designation :

President and CFO

 

 

Name :

Mr. Guy R. Goves

Designation :

President – Agribusiness

 

 

Name :

Mr. Pandurang Landge

Designation :

President – Projects

 

 

Name :

Mr. Carl Anders Lindgren

Designation :

President and Technical Advisor for TAN

 

 

Name :

Mr. Alok Goel

Designation :

President – Strategy and Business Development

 

 

Name :

Mr. Naresh Kumar Pinisetti

Designation :

President - Human Resources

 

 

Name :

Mr. Paresh Trivedi

Designation :

President - Chemicals

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2015

 

Category of Shareholder

No. of Shares

Percentage of Holding

 

 

 

(A) Shareholding of Promoter and Promoter Group

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

26104701

29.60

http://www.bseindia.com/include/images/clear.gifBodies Corporate

18655372

21.15

http://www.bseindia.com/include/images/clear.gifSub Total

44760073

50.75

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

44760073

50.75

(B) Public Shareholding

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

1954323

2.22

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

27787

0.03

http://www.bseindia.com/include/images/clear.gifInsurance Companies

1812082

2.05

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

12435355

14.10

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

465804

0.53

http://www.bseindia.com/include/images/clear.gifForeign Portfolio Investments Corporation

465804

0.53

http://www.bseindia.com/include/images/clear.gifSub Total

16695351

18.93

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

3763878

4.27

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 Million

17437412

19.77

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 Million

3084043

3.50

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

2464186

2.79

http://www.bseindia.com/include/images/clear.gifTrusts

20674

0.02

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

2258762

2.56

http://www.bseindia.com/include/images/clear.gifOthers

184750

0.21

http://www.bseindia.com/include/images/clear.gifSub Total

26749519

30.33

Total Public shareholding (B)

43444870

49.25

Total (A)+(B)

88204943

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1)

0

0.00

http://www.bseindia.com/include/images/clear.gif(2)

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

88204943

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject produces and sells industrial chemicals and fertilizers.

It operates through Chemicals, Bulk Fertilisers, Realty, and Others.

·         The Chemicals segment offers ammonia, methanol, dilute nitric acid, concentrated nitric acid, liquid carbon di-oxide, strong nitric acid, TAN, ISO propyl alcohol, propane, and bulk and specialty chemicals.

·         The Bulk Fertilisers segment provides NP, MOP, DAP, ammonium sulphate, mixtures, SSP, sulphur, micronutrients, SSF, bio fertilizers, fruits, vegetables, and pesticides.

·         The Realty segment is involved in the real estate business.

·         The Others segment generates power through windmills.

·         The company also provides agri-lab services comprising soil testing, plant tissue, water, and organic fertilizers samples.

 

 

Products :

Industrial Chemicals and Fertilizers

 

 

Brand Names :

“MAHADHAN”

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

Not Available

 

 

Terms :

Not Available

 

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Maximum Limit Dealt :

Not Available

Experience :

Not Available

Remark:

Not Available

 

 

Customers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Maximum Limit Dealt :

Not Available

Experience :

Not Available

Remark:

Not Available

 

 

No. of Employees :

1486 (Approximately)

 

 

Bankers :

Bank of Baroda

IDBI Bank Limited

The Hongkong and Shanghai Banking

Corporation Limited

DBS Bank Limited

ICICI Bank Limited

State Bank of India

Yes Bank Limited

Kotak Mahindra Bank Limited

 

 

Facilities :

SECURED LOANS

31.03.2015

Rs. In Million

31.03.2014

Rs. In Million

Long-term Borrowings

 

 

External Commercial Borrowings (ECBs)

 

 

Bank of Baroda

625.000

838.600

HSBC Bank

260.417

748.750

Debentures - Secured (Listed)

 

 

500, 9.31%  Redeemable Privately Placed Non-Convertible Debentures

(NCDs) of Rs.1.000 Million each

0.000

500.000

500, 10% Redeemable Privately Placed NCDs of Rs.1.000 Million each

0.000

166.667

500, 9.75% Redeemable Privately Placed NCDs of Rs.1.000 Million each

0.000

166.667

1000, 9.70% Redeemable Privately Placed NCDs of Rs.1.000 Million each

0.000

1000.000

2500, 9.71% Redeemable Privately Placed NCDs of Rs.1.000 Million each

2500.000

2500.000

Short Term Borrowings

 

 

From banks:

 

 

- Buyer’s credit (in foreign currency)

3159.602

2296.493

- Cash credit facilities

750.000

0.000

-Cash credit facilities

481.094

0.000

Total

7776.113

8217.177

 

Notes:

 

Long-term Borrowings

 

Particulars

Rate and Repayment

schedule

Security

ECBs from Bank of

Baroda,  Rs.875.000

Million(Rs. 988.350

Million). Rs.62.494 Million

(Rs.29.940 Million) kept as fixed deposit  with Bank of  Baroda as a lien for ECBs

At variable interest rate of Libor plus 325 basis points payable quarterly (average for the year 3.59%)  (3.89%).

Repayable in 20   quarterly installments commencing from 30th September, 2012 and last installment is

payable on 30th June, 2017

Pari-passu first charge on the entire fixed assets pertaining to Technical Ammonium Nitrate (TAN Project), the leasehold rights and interest in Plot Nos. K-7 and K-8 at MIDC Industrial Area, Taloja, Dist. Raigad, Maharashtra and the building(s) structure(s) standing or to be constructed thereon and all fixed plants and machineries installed/ to be installed thereon, and all movable machineries, equipment and other movable assets of the said  project, both present and future and the  equipment’s, furniture, fixtures and fittings (excluding current assets) along with payment of interest and additional interest on the said loans, remuneration of the Trustees and all other monies thereto.

ECBs from HSBC Bank, Rs.781.250 Million (Rs. 1247.917 Million)

At variable interest rate of Libor plus 300 basis points payable half yearly. The Company has taken interest rate swap from floating rate to fixed rate of 6.09 % Repayable in 6 equal half yearly  installments commencing from 31st January, 2014 and last installment is payable on 29th July, 2016

Redeemable  Privately Placed NCDs Rs.500.000

Million  (Rs.500.000 Million)

9.31% per annum payable annually. Redeemable in single installment on 15th July, 2015

Pari-passu first charge on the Company’s fixed assets, plant and machinery pertaining to Iso Propyl Alcohol (IPA) Plant located at Plot No. K-2, MIDC Industrial Area, Taloja, Dist. Raigad, Maharashtra and the building(s), structure(s) standing or to be constructed thereon and all fixed plants and  machineries installed/to be installed thereon, and all movable machineries, equipments and other movable assets of the said project, both present and

future and the equipments, furniture, fixtures and fittings (excluding current assets) along with payment of interest and additional interest on the said loans, debenture costs, charges, expenses and remuneration of the Trustees and all other monies thereto ranking pari-passu with subsisting mortgage with minimum asset cover of 1.25 times of the asset value over the outstanding debenture issue amount, at all times.

Redeemable  Privately Placed NCDs Rs.166.667

Million(Rs. 333.333Million)

10% per annum payable quarterly. Redeemable in

three equal installments from 25th November, 2013 to 25th November, 2015

Pari-passu first charge on the entire fixed assets pertaining to Technical Ammonium Nitrate (TAN Project), the leasehold rights and interest in Plot Nos. K-7 and K-8 at MIDC Industrial Area, Taloja, Dist. Raigad, Maharashtra and the building(s) structure(s) standing or to be constructed thereon and all fixed plants and machineries installed/ to be installed thereon, and all movable machineries, equipments and other movable assets of the said project, both present and future and the equipments, furniture, fixtures and fittings (excluding current assets) along with payment of interest and additional interest on the said loans. remuneration of the Trustees and all other monies to rank pari-passu with subsisting mortgage with minimum asset cover of 1.25 times of the asset value over the outstanding debenture issue amount, at all times.

Redeemable Privately Placed NCDs Rs.166.667

Million  (Rs. 333.334Million)

9.75% per annum payable quarterly. Redeemable in three equal installments

from 25th November, 2013 to 25th November, 2015

Redeemable  Privately Placed NCDs Rs.416.666

Million

10.80% per annum payable annually. Redeemable in three equal installments from 1st September, 2012 to 1st September, 2014

Pari-passu charge on the entire assets of the Company’s immovable properties, plant and machinery, whether immovable or movable, pertaining to the Company’s undertaking situated at Plot Nos. K-1 and K-2, MIDC Industrial Area, Taloja, Dist. Raigad, Maharashtra to rank pari-passu with the mortgages and charges created in favour of financial institutions/trustees and prior mortgages and charges in favor of the banks together with

interest, remuneration of the Trustees and all other monies thereto ranking pari-passu with subsisting mortgage with minimum asset cover of 1.25 times of the asset value over the outstanding debenture issue amount, at all times.

Redeemable

Privately Placed

Non-Convertible

Debentures  Rs.1000.000 Million (Rs.1000.000 Million)

9.70% per annum payable annually. Redeemable in single installment on 18th January, 2016

Pari-passu charge on the present and future immovable and movable fixed assets (i.e. Land, Building and Plant and Machinery) pertaining to Ammonia, WNA, CNA, LDAN, ANP, Bagging, ETP, DNA4, Methanol, CO2 plants located at Plot K1, MIDC Industrial Area, Taloja, Dist. Raigad, Maharashtra of the Company, ensuring a minimum asset cover of 1.25 times of the gross value of assets over the outstanding debenture issue amount, at all times.

Redeemable

Privately Placed

Non-Convertible

Debentures Rs.2500.000

Million  (Rs.2500.000 Million)

9.71% per annum payable annually. Redeemable in single installment on 18th January, 2018

 

Short Term Borrowings

 

Notes:

 

Buyer’s credits are generally due within 180 days and carry variable average interest rate for the year 0.84 % (0.97%) are secured by a first charge by way of hypothecation of stocks of raw materials, stock-in-process, consumable stores and book debts.

 

Short term loan from bank is repayable on 9th April, 2015 carries interest rate of 9.60% and is secured by a first charge by way of hypothecation of stocks of raw materials, stock-in-process, consumable stores and book debts.

 

Cash credit is repayable on demand and carries variable interest rate (average interest rate for the year is 10.56% (11.62%)). Cash credit facilities sanctioned by banks including working capital demand loans are secured by a first charge by way of hypothecation of stocks of raw materials, stock-in-process, consumable stores and book debts.

 

 

 

Financial Institution:

IL and FS Trust Company Limited, Il and Fs Financial Centreplot No C22 G Block Bandra, Kurla Complex Bandra East, Mumbai - 400051, Maharashtra , India

 

 

Auditors :

 

Name :

B. K. Khare and Company

Chartered Accountants

 

Solicitors 1 :

 

Name :

Crawford Bayley and Company

 

Solicitors 2 :

 

Name :

AZB and Partners

 

Solicitors 3 :

 

Name :

Desai and Diwanji

 

 

Subsidiaries :

  • Smartchem Technologies Limited (STL)
  • Deepak Nitrochem Pty. Limited
  • Deepak Mining Services Private Limited (DMSPL)
  • Yerrowda Investments Limited
  • Runge Pincock Minarco (Subsidiry of DMSPL)
  • India Private Limited
  • SCM Soilfert Limited
  • Platinum Blasting Services Pty Limited (Subsidiary of STL)
  • SCM Fertichem Limited

 

 

Associates :

  • Ishanya Brand Services Limited
  • Ishanya Realty Corporation Limited

 

 

Jointly Controlled Entity :

  • Desai Fruits and Vegetables Private Limited

 

 

Entities over which key managerial personnel are able to exercise significant influence: 

  • Blue Shell Investments Private Limited
  • Nova Synthetic Limited
  • The Lakaki Works Private Limited
  • Superpose Credits and Capital Private Limited
  • Storewell Credits and Capital Private Limited
  • High Tide Investments Private Limited
  • Deepak Asset Reconstruction Private Limited
  • Mahadhan Investment and Finance Private Limited
  • SCM Fertichem Limited
  • Ishanya Foundation
  • Deepak Foundation

 

 

enterprises over which

relatives are able to

exercise significant

influence:
  • Deepak Nitrite Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

125000000

Equity Shares

Rs.10/- each

Rs.1250.000 Million

1000000

Cumulative Redeemable Preference Shares

Rs.100/- each

Rs.100.000 Million

 

Total

 

Rs.1350.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

88204943

Equity Shares

Rs.10/- each

Rs. 882.049  Million

 

 

 

 

 

 

Reconciliation of the number of shares

 

Equity Shares

Number of Shares

Rs. In Million

Balance as at the beginning of the year

88204943

882.049

Add: Issued during the year

--

--

Balance as at the end of the year

88204943

882.049

 

 

Terms/ Rights attached with Equity Shares

 

The Company has only one class of issued Equity Shares having at par value of Rs.10 per Share. Each holder of Equity Shares is entitled to one vote per Share.

 

The Company declares and pay dividend in Indian Rupee except in the case of overseas Shareholders where dividend is paid in respective foreign currencies considering foreign exchange rate applied at the date of remittance. The dividend proposed by the Board of Directors is subject to the approval of Shareholders in the ensuring Annual General Meeting.

 

In the event of liquidation of the Company the holders of Equity Share will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.

 

 

Details of equity shares held by shareholders holding more than 5% of the aggregate Shares in the Company

 

 

 

 

Name of Shareholder

Number of Shares

% holding

Shri S. C. Mehta

21.284

24.13%

Nova Synthetic Limited

17.267

19.58%

Fidelity Puriton Trust Fund-Fidelity low prices

7.569

8.58%

Total

46.120

52.29%

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.03.2015

31.03.2014

31.03.2013

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

882.049

882.049

882.049

(b) Reserves & Surplus

14366.573

14029.096

12260.457

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

15248.622

14911.145

13142.506

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

3385.417

5920.684

7141.504

(b) Deferred tax liabilities (Net)

1244.943

1177.548

1222.838

(c) Other long term liabilities

8.199

2.191

7.702

(d) long-term provisions

260.964

233.708

197.888

Total Non-current Liabilities (3)

4899.523

7334.131

8569.932

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

7851.099

2296.493

3044.302

(b) Trade payables

2306.427

3458.287

2076.125

(c) Other current liabilities

3803.216

2784.670

2079.193

(d) Short-term provisions

528.251

807.176

699.378

Total Current Liabilities (4)

14488.993

9346.626

7898.998

 

 

 

 

TOTAL

34637.138

31591.902

29611.436

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

13445.391

13796.017

14023.589

(ii) Intangible Assets

60.704

85.079

103.361

(iii) Capital work-in-progress

1405.656

939.335

265.431

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1081.848

2788.227

956.578

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

665.617

408.067

581.936

(e) Other Non-current assets

19.519

57.183

82.204

Total Non-Current Assets

16678.735

18073.908

16013.099

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

1932.490

262.160

2483.262

(b) Inventories

4029.594

3387.584

2397.844

(c) Trade receivables

9352.527

7693.975

6451.646

(d) Cash and cash equivalents

383.617

924.756

1020.122

(e) Short-term loans and advances

2097.115

1148.660

1135.973

(f) Other current assets

163.060

100.859

109.490

Total Current Assets

17958.403

13517.994

13598.337

 

 

 

 

TOTAL

34637.138

31591.902

29611.436

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

Income

37117.663

38104.394

26079.490

 

Other Income

382.804

448.641

602.914

 

TOTAL (A)

37500.467

38553.035

26682.404

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

13946.444

16527.636

12524.950

 

Purchases of Stock-in-Trade

15958.013

11438.421

6301.675

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(725.659)

(473.730)

(309.631)

 

Employees benefits expense

         1426.813

1634.195

1450.164

 

Other expenses

3534.987

3915.187

2913.200

 

Exceptional Items

3.485

113.520

0.000

 

TOTAL (B)

34144.083

33155.229

22880.358

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

3356.384

5397.806

3802.046

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

1101.071

1007.507

821.737

 

 

 

 

 

 

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

2255.313

4390.299

2980.309

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

1173.078

1026.397

974.536

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

1082.235

3363.902

2005.773

 

 

 

 

 

Less

TAX (H)

298.720

925.059

536.722

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-H)   (I)

783.515

2438.843

1469.051

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD  (K)

10375.704

8949.895

8305.502

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

Transferred to Debenture Redemption Reserve

22.920

95.830

116.563

 

Transferred to General Reserve

0.000

247.000

147.500

 

Proposed Dividend on Equity Shares (Net)

352.832

573.345

485.140

 

Tax on Proposed Dividend (Net)

57.289

96.859

75.455

 

Total (M)

433.041

1013.034

824.658

 

 

 

 

 

 

Balance Carried to the B/S (J+K+L-M)

10726.178

10375.704

8949.895

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

Export of goods (on FOB basis)

879.965

805.872

784.585

 

Other income

78.949

151.663

138.178

 

TOTAL EARNINGS

958.914

957.535

922.763

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw materials

4062.907

6962.522

2514.946

 

Components and spare parts

106.199

70.860

70.924

 

Capital goods

47.456

73.787

67.045

 

Stock-in-trade

11697.266

8479.678

4056.620

 

TOTAL IMPORTS

15913.828

15586.847

6709.535

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

8.88

27.65

16.65

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term debt

2604.167

1398.918

1053.227

Cash generated from operations

(515.654)

5103.3005

2804.948

Net cash flow from operating activity

(729.630)

4136.637

2490.137

 

 

QUARTERLY RESULTS

 

Particulars

30.06.2015

30.09.2015

UnAudited

1ST Quarter

2nd Quarter

Net Sales

10721.800

10484.700

Total Expenditure

9789.000

9556.800

PBIDT (Excl OI)

932.800

927.900

Other Income

331.700

33.500

Operating Profit

1264.500

961.400

Interest

318.100

317.000

Exceptional Items

NA

NA

PBDT

946.400

644.400

Depreciation

293.000

295.800

Profit Before Tax

653.400

348.600

Tax

200.100

84.500

Provisions and contingencies

NA

NA

Profit After Tax

453.300

264.100

Extraordinary Items

NA

NA

Prior Period Expenses

NA

NA

Other Adjustments

NA

NA

Net Profit

453.300

264.100

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

2.11

6.40

5.63

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

9.04

14.17

14.58

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.37

12.07

7.07

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.07

0.23

0.15

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.91

0.64

0.86

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.24

1.45

1.72

 

 

STOCK PRICES

 

Face Value

Rs.10/-

Market Value

Rs.146/- (BSE)

 

 

 

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

882.049

882.049

882.049

Reserves & Surplus

12260.457

14029.096

14366.573

Money received against share warrants

0.000

0.000

0.000

 Share Application money pending allotment

0.000

0.000

0.000

Net worth

13142.506

14911.145

15248.622

 

 

 

 

long-term borrowings

7141.504

5920.684

3385.417

Short term borrowings

3044.302

2296.493

7851.099

Current Maturities of Long-Term Debts

1053.227

1398.918

2604.167

Total borrowings

11239.033

9616.095

13840.683

Debt/Equity ratio

0.855

0.645

0.908

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

26079.490

38104.394

37117.663

 

 

46.109

(2.590)

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

26079.490

38104.394

37117.663

Profit

1469.051

2438.843

783.515

 

5.63%

6.40%

2.11%

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No



 





LITIGATION DETAILS

 

Case Details

Bench:- Bombay

 

Lodging No.:-

EXAL/109/2009

Filing Date:-

17/02/2009

Reg. No.:-

EXA/294/2009

Reg. Date:-

04/08/2009

Petitioner:-

VITO S.A.

Respondent:-

DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED

Petn.Adv:-

CHAMBERS OF JAVED GAYA (APPLICANT)

Resp. Adv.:

DOIJODE ASSOCIATE (0)

District:-

BOMBAY

Bench:-

SINGLE

Status:-

Pre-Admission

Category:-

EXECUTION APPLICANS

 

 

STATE OF COMPANY’S AFFAIRS

 

The operations of the Company were adversely affected during the, in view of the stoppage of supply of domestic gas pursuant to an order by Ministry of Petroleum and Natural Gas (MoPNG) w.e.f. 15th May, 2014. The Company has since challenged the order of MoPNG in the Hon’ble High Court of Delhi. All proceedings in the Hon’ble High Court of Delhi have been completed and the final order is awaited. As a result of stoppage of supply of domestic natural gas the Nitrophosphate Plant at Taloja has been closed since 15th May, 2014.

 

The closure of the Nitrophosphate plant at Taloja led to a major drop in production and correspondingly, in profits of the Company. However, the Company was able to largely contain the consequent reduction of topline at Rs. 37117.700 Million (including Rs. 16726.300 Million from trading operations) for the year, which was marginally below the previous year’s level of Rs. 38104.400 Million (including Rs. 11934.200 Million from trading operations). Profit Before Tax (PBT) for the year was Rs. 1082.200 Million as against Rs. 3363.900 Million in the previous year. Net Profit for the current year was recorded at Rs. 783.500 Million as compared to Rs. 2438.800 Million in the previous year. A further analysis of the performance is available in the Management Discussion and Analysis (MDA), which forms part of this Report, and inter-alia, deals adequately with the operations as also current and future outlook of the Company.

 

Shri R. A. Shah had resigned from the position of Independent Director w.e.f. 30th September, 2014. Subsequently, the Board of Directors of the Company has, on the recommendation of Nomination and Remuneration Committee, appointed Shri R. A. Shah as Additional Director w.e.f. 11th February, 2015 in the category of Non-Independent and Non-Executive Director.

 

Shri Partha Bhattacharyya, Executive Director, retires by rotation at the ensuing Annual General Meeting pursuant to the provisions of Section 152 of Companies Act, 2013 and being eligible, offers himself for reappointment.

 

 

Six Board Meetings were held during the year. These meetings were held on 22nd April, 2014, 15th May, 2014, 31st July, 2014, 4th November, 2014, 11th February, 2015 and 20th March, 2015.

 

Independent Directors have given declaration that they meet the criteria of independence as provided in subsection (6) of Section 149 of the Companies Act, 2013.

 

 

DIRECTORS’ RESPONSIBILITY STATEMENT

 

Pursuant to the provisions of sub-section (5) of Section 134 of the Companies Act, 2013, the Directors confirm that:

 

i) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

 

ii) the accounting policies had been selected and applied consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year on 31stMarch, 2015 and of the profit and loss of the Company for that period;

 

iii) proper and sufficient care had been taken for the maintenance of adequate accounting in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

 

iv) the annual accounts had been prepared on a going concern basis;

 

v) internal financial controls, to be followed by the Company are duly laid down and these controls are adequate and were operating effectively; and vi) systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.

 

 

SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES

 

During the year, the Company has acquired 49,993 Equity Shares (i.e. 99.99%) and has also acquired beneficial interest of remaining 7 equity shares (i.e. 0.01%) of SCM Fertichem Limited. Thereby, SCM Fertichem Limited became wholly owned subsidiary of your Company.

 

Further, during the Smartchem Technologies Limited, wholly owned subsidiary of your Company had incorporated a Joint Venture, namely Platinum Blasting Services Pty Limited in Australia.

 

 

AWARDS AND ACCOLADES

 

The following recognitions were received by the Company and others during the year

under review:

 

– The Indian Chemical Council (ICC) has conferred the ‘ICC Lifetime Achievement Award for the year 2013’ on Shri C. K. Mehta, Chairman Emeritus, in recognition of his exceptional contributions towards industrial development and societal upliftment.

 

– ‘Gold Award for Best HR Practices’ from National Institute of Personnel Management.

 

– Safety Award – 2014 from National Safety Council of India in recognition of appreciable achievement in Occupational Safety and Health during the assessment period

2011-13.

 

– Greentech Gold Award – 2014 for the most outstanding achievement in Fire, Safety and Health for the K-1 unit at Taloja.

 

– Greentech Silver Award – 2014 in Fertiliser sector for outstanding achievement in Environment Management.

 

– Excellence in Manufacturing Supply Chain in Chemical Division at the 8th Express, Logistics and Supply Chain Leadership Awards.

 

– CPO India Awards 2014 for ‘Outstanding Procurement Team’ and Runner up Award for 1st Choice Vendor/Supplier Development Programme.

 

– Felicitated by the Revenue Department of Central Government for consistent growth in Excise and Service Tax payments for past 3 years.

 

– Shri Naresh Kumar Pinisetti, President – HR has been awarded ‘The 100 most Talented Global HR Leaders’ by the World HRD Congress.

 

– Shri Pranav Thakkar, Head – Corporate Communication, was recognised as one of the ‘50 Most Talented Corporate Communication Leaders’ by World CSR Congress.

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

Short Term Borrowing

 

 

Commercial Paper Borrowings

3460.403

0.000

 

 

 

Total

3460.403

0.000

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10426207

09/04/2013

3,500,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG 
, BALLARD ESTATE, MUMBAI, Maharashtra - 400001, I 
NDIA

B74446279

2

10372880

06/08/2015 *

18,050,000,000.00

IL AND FS TRUST COMPANY LIMITED

IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, Maharashtra 
- 400051, INDIA

C62392824

3

10245057

07/10/2010

1,150,000,000.00

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI 
TED

PLOT NO. 139-140B, WESTERN EXPRESS HIGHWAY, SAHAR 
ROAD JUNCTION, VILLE PARLE (EAST), MUMBAI, Maharashtra - 400057, INDIA

A96437066

4

10206363

24/02/2010

1,000,000,000.00

CENTRAL BANK OF INDIA

MMO BLDG, 6TH FLOOR, 55, MAHATMA GANDHI ROAD, FORT, MUMBAI, Maharashtra - 400001, INDIA

A81243370

5

10204739

18/12/2012 *

960,000,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICE BRANCH, MANTRI COURT, 
1ST FLOOR, 39, RAMABAI AMBEDKAR ROAD, PUNE, Maharashtra - 411001, INDIA

B65872426

 

 

UNAUDITED FINANCIAL RESULTS FOR THE    QUARTER ENDED 30TH JUNE 2015

 

 (Rs. In Million)

Particulars

Quarter Ended

( Unaudited)

 

30.06.2015

1. Income from operations

 

a) Net sales/ Income from operation (net of excise duty)

10651.500

b) Other operating income

70.300

Total income from Operations(net)

10721.800

2.Expenditure

 

a) Cost of material consumed

3441.600

b) Purchases of stock in trade

7647.100

c) Changes in inventories of finished goods, work-in-progress and stock-in-trade

(2717.800)

d) Employees benefit expenses

411.300

e) Depreciation and amortization expenses

293.000

f) Other expenditure

1006.800

Total expenses

10082.000

3. Profit from operations before other income and financial costs

639.800

4. Other income

331.700

5. Profit from ordinary activities before finance costs

971.500

6. Finance costs

318.100

7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items

653.400

8. Exceptional item

0.000

9. Profit from ordinary activities before tax Expense:

653.400

10.Tax expenses

200.100

11.Net Profit / (Loss) from ordinary activities after tax (9-10)

453.300

12.Extraordinary Items (net of tax expense)

0.000

13.Net Profit / (Loss) for the period (11 -12)

453.300

14.Paid-up equity share capital (Nominal value Rs.10/- per share)

882.000

15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

--

16. i)Earnings per share (before extraordinary items) of Rs.10/- each (not annualised):

 

(a) Basic

5.14

(b) Diluted

5.14

ii) Earnings per share (after extraordinary items) of Rs.10/- each (not annualised)

 

(a) Basic

5.14

(b) Diluted

5.14

 

 

Particulars

Quarter Ended

( Unaudited)

 

30.06.2015

A. Particulars of shareholding

 

1. Public Shareholding

 

- Number of shares

43444870

- Percentage of shareholding

49.25

2. Promoters and Promoters group Shareholding-

 

a) Pledged /Encumbered

 

Number of shares

--

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

--

Percentage of shares (as a % of total share capital of the company)

--

 

 

b) Non  Encumbered

 

Number of shares

44760073

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

100.00

Percentage of shares (as a % of total share capital of the company)

50.75

 

 

B. Investor Complaints

 

Pending at the beginning of the quarter

0

Receiving during the quarter

1

Disposed of during the quarter

1

Remaining unreserved at the end of the quarter

0

 

 

 

 

 

UNAUDITED SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Million)  

Particulars

Quarter Ended

( Unaudited)

 

30.06.2015

1. Segment Revenue

 

a. Chemicals

 

Manufactured

4683.800

Traded

2279.200

Total

6963.000

(b) Fertilisers

 

Manufactured

265.800

Traded

3540.500

Total

3806.300

(c) Realty

24.900

(d) Others

29.000

Total

10823.200

Less : Inter Segment Revenue

101.400

Net Sales / Income from Operations

101.400

 

 

2. Segment Result (Profit before Interest and Tax)

 

a) Chemicals

 

(b) Fertilisers

759.400

(c) Realty

141.000

(d) Others

(42.000)

Total

878.600

 

 

Less : (i) Interest

318.100

(ii) Other un-allocable expenditure net off un-allocable income.

(92.900)

Total Profit Before Tax from Ordinary Activities

653.400

 

 

Profit before Tax

 

3. Capital Employed

 

a) Chemicals

14465.400

(b) Fertilisers

6150.000

(c) Realty

2441.800

(d) Others

297.600

(e) Unallocated

(7652.900)

Total

15701.900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

  1. The above unaudited financial results for the quarter ended 30th June, 2015 have been subjected to a limited review by the statutory auditors of the Company. These results were reviewed by the Audit Committee. The Board of Directors at its meeting held on 5th August, 2015 approved the same.

 

  1. Exceptional item’ in the quarter ended and the year ended 31st March, 2015, represents cost of voluntary separation scheme for employees at Taloja unit.

 

  1. Effective from 15th May, 2014 the domestic gas supply to the Company has been stopped, pursuant to an Order passed by the Ministry of Petroleum and Natural Gas (MoPNG). As a consequence, the Nitro phosphate plant was under shut down. The Company, being of the view that this abruspt decision to stop the gas supply is arbitrary and discriminatory, challenged the Order of Moo PNG by moving the Delhi High Court. Vide its Order dated 7th July, 2015 the Delhi High Court directed the Government to resume supply of gas till implemented its policy uniformly to all manufacturer’s of P and K fertilisers without discrimination. The resumption of supply of gas is awaited.

 

  1. The shareholding of SCM Soilfert Limited (SSL), a wholly subsidiary of the Company, in Mangalore Chemicals ans Fertilisers Limited (MCFL) reduced to Nil as at 30th June, 2015 pursuant to sale of 28.48% equiety holding during the quarter. The Company received dividend of Rs.275.000 Million (Rs.70.554 Million in Q4 FY 2015) from SSL during the current quarter.

 

 

  1. The figures for the Quarter ended 31st March, 2015, are the balancing figures between audited figures in respect of the year ended 31st March, 2015 and the published year to date figures up to the nine months ended 31st December, 2014.

 

  1. Previous period's figures have been reclassified wherever necessary to conform to current period's classifications.

 

 

CONTINGENT LIABILITIES:

 

(Rs. in million)

PARTICULARS

31.03.2015

31.03.2014

Claim by suppliers

435.618

398.996

Income tax demands

388.898

329.899

Excise demands

286.287

286.697

Sale tax /VAT demands

340.527

273.581

Bank guarantee issued on behalf of Company

786.827

269.878

Penalty levied by Competition commission of India and contested by Company before CPAT

20.000

0.000

Letter of credit issued in favour of suppliers

2233.500

1322.849

Total

4491.657

2881.900

 

Note:

 

Natural gas is a key raw material for the Company and, based on the allocation, it had long term contracts for its supply from domestic sources. E_ective from 15th May, 2014 the domestic gas supply to the Company has been stopped, pursuant to an Order passed by the Ministry of Petroleum and Natural Gas. As a consequence, the Nitro phosphate plant has been under shut down. The Company is of the view that this abrupt decision to stop the gas supply is arbitrary and discriminatory and moved the Delhi High Court against the said Order. The Company had simultaneously approached the Department of Fertilisers to reconsider its decision of stoppage of gas supply.

 

Supply of natural gas and has formed Inter Ministerial Committee to examine this issue as well as that of supply of gas. Pending decision, the Government has withheld release of subsidy to the Company. On an invitation from the Committee, the Company has presented its case and also requested Government for release of the subsidy. In the absense of any decision in this regard, financial impact if any, on this account is not quantifible.

 

The Company is hopeful of favourable outcome of the above matters.

 

 

FIXED ASSETS

 

·         Land freehold

·         Land leasehold

·         Buildings

·         Plant and machinery

·         Electrical installation and fittings

·         Furniture and fixtures

·         Office equipment’s

·         Laboratory Equipment

·         Vehicles

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.66.13

UK Pound

1

Rs.100.55

Euro

1

Rs.71.26

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

Report Prepared by :

SUD

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILITY

1~10

6

--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

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

59

 

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

 

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

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

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

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

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