BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION

Case No.70/2006 Duncans Industries Ltd. (DIL)
12.7 60% de-rating of share capital of DIL:
As the losses have eroded the complete net-worth of the
Company and the paid-up value of equity shares of the company
does not reflect their true value, therefore existing paid-up equity
share capital amounting to Rs 53.22 Cr shall stand de-rated by
60%. The 8.25% Redeemable Cumulative Preference Shares
amounting to Rs 9.50 Cr shall also stand reduced by 60%.
As part of the restructuring under CDR, unpaid interest
amounting to Rs 165.98 Cr of banks / financial institutions was
converted into 0.001% Cumulative Redeemable Preference
Share (CRPS). Since the principal dues of the banks and FI s
shall be settled on OTS basis, their rights in existing CRPS shall
be extinguished and written off fully.
The amount outstanding in capital redemption reserve of Rs 15 Cr
and debenture redemption reserve of Rs 11.87 Cr shall stand
transferred / adjusted to / from accumulated losses.
12.8 Capital expenditure of Rs 229.30 Cr on Fertiliser Plant:
Conversion of fertilizer plant from Naphtha-based feedstock to
Gas cum Naphtha based dual feedstock together with energy
saving measures and revamping of the plant involving
expenditure of Rs 229.30 Cr.
12.8.1 Conversion of feedstock of fertilizer plant from Naphthabased
to Gas cum Naphtha based dual feedstock, energy
saving measures and revamping of plant:
(i)
(ii)
Urea industry in India comprises of 30 plants, out of which 15 plants
are gas based, 8 plants are naphtha based and 7 plants are based
on other feedstock. In terms of capacity, 60% is gas based and
40% is based on naphtha and other feedstock i.e. almost half of the
country s fertiliser capacity is still not gas based. While the need to
convert to gas is well established as per the policy of GOI, however
availability of gas continues to be an area of concern.
In view of the GOI policy, all non-gas based i.e. FO / naphtha
based plants have to be converted to gas based plants. The site of
DIL fertiliser plant at Panki is very strategically located and the HBJ
pipeline is passing only 18 km away. Supply of gas to this site can
be made available on creating the necessary facility by the GAIL.
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