BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION

Case No.70/2006 Duncans Industries Ltd. (DIL)
IV, Employees Dues: 5998.83 100% 5998.83
V. Statutory Dues: 1627.36 100% 1627.36 0.00
VI. Other Unsecured Creditors /
Liabilities
(a)Non Current Period:
Suppliers / Creditors ( Non Current) 1915.79 25% 478.95 1436.84
L&T Finance 42.07 25% 10.52 31.55
Bills Discounting( Private Parties) 323.66 25% 80.92 242.75
Provision for Interest 406.91 0% 0.00 406.91
Sub-total (a) 2688.43 570.38 2118.05
(b)Current Period: 8397.45 100% 8397.45 0
Total Other Unse. Creditors / Liabilities
(a+b) 11085.88 8967.83 2118.05
Total Secured and Unsecured Loans /
Other unsecured creditors / liabilities (B) 65910.49 37245.00 28665.49
Tea excl bank borrowings Rs 6000 lakh
to continue and current creditors 51513.04 22847.55 28665.49
Total Liabilities of Fertilizer and Tea
(A+B) 157566.39 76088.37 81478.02
10 MARKET REPORT / MARKETING ARRANGEMENT
10.1 The Company s Chand Chhap brand of Urea was one of the strongest Urea
brands in the fertilizer market in Northern India. The plant is ideally located in
agriculture belt and in decontrol scenario, with the brand equity of Chand
Chhap , the entire production of Urea can be sold within a radius of 100 miles.
The dealer network of the Company is in the entire northern India which needs
to be revamped on resuming the plant operation .
10.2 Tea is generally sold through brokers in auction centers at Siliguri and Kolkata.
Loose tea is also sold all over India through a network of agents.
10.3 INDUSTRIAL SCENARIO
India s fertilizer production has been stagnating for the last two decades
and consumption is growing at a steady pace. No capacity has been
added over more than a decade due to lack of incentives by the GOI.
Under the current five year plan, GOI is laying strong emphasis on the
development of the agri-sector and increasing food production. With the
impetus, the demand for the fertilizer in general and Urea in particular is
expected to grow at rates higher than those witnessed in the past. The
country is becoming increasingly import dependent for farm nutrients.
India imports about 20% of the world tradable surplus of urea, diammonium
phosphate and muriate of potash. The country needs to
increase the fertilizer output from 20 million tonnes to 40 million in order
to reduce imports. Greenfield route for increasing the production
capacity is very capital intensive with high gestation while revival of the
existing plants would involve lower capital with short gestation period.
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