BIFR to clear PPL package in December

The Board for Industrial and Financial Reconstruction ( BIFR) is all set to clear the revival package of Paradeep Phosphate Limited ( PPL) in the first week of December 2008. The operating agency State Bank of India ( SBI) has finalised the revival work and the notice period for clearance ends on November 30, 2008. The revival package may include proposals for restructuring the current equity from Rs 575 crore to Rs 715 crore with the fresh infusion of capital of Rs 140 crore by the promoters.
It would also have suggestions for concessions and reduction of interest on outstanding loans of around Rs 250 crore to keep afloat in future. The loans were accumulated as a government concern between 1993 and 2002.
PPL currently has a private holding of 80.45 per cent through Zuari Maroc Phosphate Limited ( ZMPL) and a union government holding of 19.55 per cent. It’s authorised capital is Rs 1000 crore.
With a face value of Rs 1000 per share, PPL’s assets till 2005-06 were around Rs 1004.84 crore and liabilities of about Rs 620.05 crore.
During this period, the company’s accumulated losses were Rs 771 crore and it has total resource fund ( trf) of Rs 1455 crore by way of secured and unsecured loans of Rs 226.35 crore and Rs 653.35 crore and a paid up of Rs 575.45 crore.
PPL has about Rs 900 crore of funds locked up with the Centre by way of fertiliser subsidy and a portion of the government’s share as owner of the company in the total amount of loss incurred since 2001-02.
The company was referred to BIFR in 2002-03 and after making a series of losses for consecutive four years it managed to turn round in 2005-06. There was, however, a periodic decrease in losses since 2001-02 to 2004-05.
The company achieved a remarkable feat when its net profit rose by a whopping 808 per cent from Rs 12.7 crore in 2005-06 to Rs 109.27 crore in 2006-07.
In 2006-07, the company achieved an annual production of 13.08 lakh tonnes and a sale of 13.18 lakh tonnes of DAP, NPK , NPK ( 10:26:26) and NPK ( 20:20:20) raising the total income to Rs 2067.2 crore from the earlier Rs 1971.3 crore.
PPL’s imports, however, are still 70 per cent of its turnover. It imports sulphure, rock, phosphate, ammonia, sulphuric acid from Morocco, Tunisia and Indonesia.