There are also entries for 2009 regarding Central Excise (fake invoices) andthere are notices for auctioning of some properties forrecovery of Debt to the tune of 95 cr from Y.R.Dhanani.
Regarding promoter fluctuation observation was from BSE website (check last tab in link below)
I have not really checked the details, but the R.H.S. charts for net profits is quite similar in shape to the promoter holding.
If you consider Debt as 100 Cr, the enterprise value is 215 Cr, thus P/E becomes >4
Regarding the Preference shares, it is more with respect to P/B and not P/E. Out of the shareholding (19 Cr) 5 cr is preference shares, which is more that 25%. And during liquidation, the preference shareholders have the right before common shareholders. Also I noticed that almost all the loans are secured against the Fixed Assets (Including Land) and Current Assets. So no way we can consider it as trading at less than book value.
it is quite possible that Y.R.Dhanani is not directly involved in Liberty Phosphates now, as his name does not appear in the AR, but there seem to be indirect holdings as 17% shareholding seem to be in his children’s names.
NEW DELHI: Risingfertiliser pricesmay lead to a drop in demand by 10-15 % thiskharif season. The impact will be more ondiammonium phosphate(DAP) whose prices are likely to double over last season.
DAP prices have gone up from Rs 12,000 a tonne last kharif to over Rs 18,000 a tonne and are likely to be revised to Rs 24,000 within a couple of weeks. "Yes, there are chances of demand destruction, keeping the rising prices in view.Farmersmay cut DAP use by 10-15 %.
Please read the complete story. Pls comment is this is in all probabilities good for SSP fortunes??
HYDERABAD: In a setback to India’s plans to secure rock phosphate resources for its fertiliser industry and NMDC’s overseas acquisition plans, Australian rock phosphate firmMinemakershas decided to call off the agreement with the state-owned iron ore producer.
In June last year,NMDChad entered into a pact with Minemakers to buy 50% stake and it was in the process of obtaining necessary clearances from the Union fertilisers ministry. The Australian firm, in a communique to the local stock exchange on Thursday, said it has lost hopes on NMDC to take the deal forward and it will now start the process of scouting for a new strategic partner.
Read the ET story. Let’s complete the outlook on Rock Phosphate imports/availability, to understand the full implications. Rock Phosphate is a key RM for SSP…input prices may play soilsport?
You are right, the key to understand the puzzle is Rock Phosphate availability/scarcity/price volatility. The widening DAP-SSP gap ensures more SSP adoption by farmers, notwithstanding subsidy cut- simply because there is no other option. and Urea is widely understood as a much poorer option- and no more that effective.
So, looks like Sales is assured, but margin pressures need to be understood better. Rock Phosphate combined with rupee depreciation of 10-15% is what we need to understand, factor in and check whether there is still a wide enough range = any dips can be offset by volumes, e.g. or is the other way round, then we stay clear!
Now you have unearthed some real serious issues/offenses.
We are trying to understand the business issues first, and then come to these. First of all thanks for your diligence and smartness in ferreting out. The normal “entity” search was only unearthing the Rs 5 Cr or so of claims. But the “person” search for DHANANI…my unearthed your 95 Cr default bomb!!
(thanks for mentioning, I woul d have never got it , otherwise)
Now do we know/can we find out - the reason for the default …original amount was 35 Cr. rets is interst+charges+damages etc. Can we dig more to understand the nature of the offence.
35 Cr offence is serious…and there are many custom default/other default cases in 2009 too. That Yusuf Dhanani and RR Dhanani are linked is seen by the 2004 default charge on both jointly. Can someone help establish how is Yousuf or Y.R Dhanani is linked to Razak or R. R Dhanani and the Promoter clan in Liberty Phosphates.
Investigation of LPL from integrity perspective was the first thing done when it came into limelight post nbs policy in April 10.all these were old cases n as per my telecon with cmd rr dhananiI I his brother does not hv much say in running of the company.
Had also checked earlier with pdil investigation team who audit all suspect plants foot fret ministry. They too were not having any apprehension on these fronts.rafiq dhanani is a London educated dawoodi bohra businessman n LPL is the oldest co in suspect sector which survived for last 36 years in most adverse time n shud flourish now when tides hv changed for better.
Meeting called on 16 June for results n dividend.cud that be the reason for price touching all time high of 92?LPL RM sourcing both within India n outside seems to be a differentiator?cud they be swallowed by a big fish,ala sab ero?
Ayush pl call me at 09899301971 or 9250008316 for conversation about liberty phosphate promoters.had conversation with pdil guys as well in this regard.
just read in disclosures in kotak report that liberty phosphate bought 2 lac shares of sayaji hotels at around 137 Rs. I dont know if it is the same firm in discussion in this thread.
