MIRA INFORM REPORT
|
Report
Date : |
9th
June, 2006 |
IDENTIFICATION
DETAILS
|
Correct
Name : |
HENKEL TEROSON INDIA LIMITED |
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Registered
Office : |
74,
Industrial Development Colony, Mehrul Road, Gurgaon - 122 001, Haryana, India
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Country: |
India |
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Financials
as on: |
31.03.2005 |
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Date
of Incorporation : |
31.101996 |
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Com.
Reg. No.: |
05-33371 |
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CIN
No.: |
U24222HR1996PLC033371 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
RTKH01176A |
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Legal
Form : |
Public Limited Company. Company limited by shares |
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Line
of Business : |
Manufacturing
and exporting of adhesives, sealants and surface coating products in
technical and financial collaboration with Henkel AG of Germany. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD
500000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a subsidiary of Henkel, Germany. Available information indicates high
financial responsibility of the company. Their trade relations are fair. Financial position is good. Payments are correct and as per
commitments. The
company can be considered good for any business partners in a medium to long
run |
LOCATIONS
|
Registered
Office : |
74,
Industrial Development Colony, Mehrul Road, Gurgaon - 122 001, Haryana, India |
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Tel.
No.: |
91-124-2301097 |
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Fax
No.: |
91-124-232
1401 |
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E-Mail
: |
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Website
: |
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Location : |
Commercial
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Factory
1 : |
74, Industrial Development Colony, Mehrauli Road, Gurgaon
- 122 001, Haryana, India |
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Tel.
No.: |
91-124-2301097/2301098/5082409/5082410 |
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Fax
No.: |
91-124-232 1401 |
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E-Mail
: |
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Website
: |
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Branches
: |
1, Sri Aurobindo Marg, New Delhi - 110 016, India |
DIRECTORS
|
Name : |
Mr. Deepak Chopra |
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Designation
: |
Director |
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Address: |
House no. 768, Anfilco Housing Colony, Palam Road,
Gurgaon-122016, Haryana |
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Date
of Birth/Age : |
25.12.1954 |
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Date
of Appointment : |
22.05.2002 |
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Name : |
Mr. Shyam Mulchand Chandani |
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Designation
: |
Director |
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Address
: |
B-1, Old
DLF Colony, Sunder Singh Marg, Gurgaon, Haryana |
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Date
of Appointment : |
31.10.1996 |
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Name : |
Mr. W. Krey |
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Designation
: |
Director |
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Address
: |
40191,
Henkelstrasseb 67, Dusseldorf, Germany |
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Date
of Birth/Age : |
25.02.1941 |
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Date
of Appointment : |
11.02.1997 |
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Name : |
Mr. Peter Scherer |
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Designation
: |
Director |
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Address
: |
P O Box
No. 25790,Riyadh 11476 (Saudi Arabia) |
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Date
of Appointment : |
11.02.1997 |
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Name : |
Mr. David Oudot |
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Designation
: |
Director |
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Address
: |
Haug
Burte, Street 4, 69123, Heildelberg, Germany |
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Date
of Appointment : |
28.05.1997 |
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Name : |
Mr. Faruk Arig |
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Designation
: |
Director |
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Address
: |
N-19,
Jurang Port Road, Singapore |
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Date
of Appointment : |
08.12.1999 |
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Name : |
Mr. Aditya Narayan |
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Designation
: |
Director |
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Address: |
B-20/02,
DLF City-I, Gurgaon-122022, Haryana |
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Date
of Birth/Age : |
08.01.1952 |
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Date
of Appointment : |
15.09.2003 |
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Name : |
Mr. Griffin Bartholomen |
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Designation
: |
Director |
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Address: |
18/F
Island Place Tower, 510 Kings Road, North Point, Hong Kong |
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Date
of Birth/Age : |
28.05.1966 |
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Date
of Appointment : |
11.12.2003 |
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Name : |
Mr. David Minshaw |
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Designation
: |
Director |
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Address: |
Suite 2301, Parkside Pacific Place, 88 Queensway, Hong
Kong |
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Date
of Birth/Age : |
11.07.1946 |
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Date
of Appointment : |
11.12.2003 |
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Name : |
Mr. Steve Ellis |
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Designation
: |
Director |
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Address: |
18/F Island Place Tower, 510 Kings Road, North Point, Hong
Kong |
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Date
of Birth/Age : |
14.12.1956 |
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Date
of Appointment : |
11.12.2003 |
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KEY EXECUTIVES
|
Name : |
Mr. Arvind Walia |
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Designation
: |
Chief Operating Officer |
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Address
: |
74, Industrial Development Colony, Mehrauli Road,
Gurgaon – 122001, Haryana, India |
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Tel.
No. : |
91-124-2321749/2321085 |
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Fax
No. |
91-124-2321401 |
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E-mail
: |
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Name : |
Mr. Sanjay Saraf |
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Designation
: |
General Manager – Operations |
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Address
: |
74, Industrial Development Colony, Mehrauli Road,
Gurgaon – 122001, Haryana |
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Tel.
No. : |
91-124-2321749/2321085 |
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Fax
No. : |
91-124-2321401 |
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E-mail
: |
sanjay.saraf@henkelindia.com |
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Name : |
Sanjeev Bhatia and Associates |
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Designation
: |
Company Secretary |
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Address
: |
E-406, Rail Vihar, Sector-15 II, Gurgaon, Haryana |
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Tel.
No. : |
91-124-2304628 |
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E-mail
: |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
|
No. of Shares |
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Henkel Kgaa, Germany |
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697735 |
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Asia Investment Limited |
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670368 |
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Mr. S. C. Patel |
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1 |
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Mr. K. N. Subramaniam |
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1 |
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Mr. Deepak Chopra |
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1 |
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Mr. P. S. Sharma |
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1 |
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Mr. K. P. Shrivastava |
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1 |
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Total |
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1368108 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing
and exporting of adhesives, sealants and surface coating products in technical
and financial collaboration with Henkel AG of Germany. |
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Products
with its Brands: |
·
Ride
Control-Gabriel Kayaba ·
Filtration-Purolator
·
Engine
Sealing-Perfect Circle, Victor ·
Drivetrain-Spicer
·
Car
Care Products-STP, Armor All ·
Climate
Control-Behr ·
Engine
Bearings-Federal-Mogul ·
Friction
Materials-Valeo ·
Sealants
and Coatings-Henkel Teroson ·
Synchroniser
Rings-Chang Yun ·
Exhaust-Arvin
·
Tools
and Dies-Dytek ·
Hydraulic
Brakes-Mando ·
Air
Brake Components-Haldex |
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Imports
from : |
Germany and other European countries. |
PRODUCTION STATUS
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
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Sealants
& Adhesives |
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Kgs Ltrs |
5100 |
3765 216 |
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Preformed
Parts |
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Mtrs. Nos. |
6300 |
3746 4722 |
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GENERAL INFORMATION
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Customers
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No. of
Employees : |
5000 |
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Bankers
: |
C
State
Bank of India, Gurgaon, Haryana, India C
Standard
Chartered Grindlays Bank Limited, Sansad Marg, New Delhi, India C
The
Bank of Nova Scotia, New Delhi, India
C
Punjab
National Bank, Gurgaon, Haryana, India C
HDFC
Bank C
Deutsche
Bank |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Bharat S.
Raut & Company Chartered
Accountants, 4-B, DLF
Corporate Bank, DLF City, Phase – III, Gurgaon, Haryana, India |
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Tel.
No.: |
91-124-2549191 |
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Associates
: |
C
Anchemco
Limited C
Anfilco
Limited C
Perfect
Circle Victor Limited C
Gabriel
India Limited C
Purolator
India Limited C
Anand
Automobiles Limited C
Ansysco
Private Limited C
Asia
Investment Limited C
Asia
Automotive Limited C
Anand
and Anand Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
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|
2000000 |
Equity
Shares |
Rs. 10/- |
Rs. 20.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
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|
1368108 |
Equity
Shares |
Rs. 10/- |
Rs. 13.681 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
13.681 |
13.681 |
13.681 |
|
2] Reserves & Surplus |
113.333 |
114.929 |
103.256 |
NETWORTH
|
127.014 |
128.610 |
116.937 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
- |
-- |
36.126 |
|
2] Unsecured Loans |
91.000 |
95.500 |
0.000 |
TOTAL BORROWING
|
91.000 |
95.500 |
36.126 |
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DEFERRED
TAX LIABILITIES |
2.862 |
0.359 |
0.670 |
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TOTAL
|
220.876 |
224.469 |
153.733 |
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APPLICATION OF FUNDS |
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|
|
|
|
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FIXED ASSETS [Net Block] |
90.653 |
60.275 |
63.426 |
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Capital work-in-progress |
6.315 |
36.011 |
1.622 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
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|
Inventories |
100.133 |
74.310 |
52.293 |
|
Sundry Debtors |
74.419 |
63.783 |
70.425 |
|
Cash & Bank Balances |
2.447 |
4.234 |
11.411 |
|
Loans & Advances |
43.326 |
59.788 |
48.097 |
|
Total Current Assets |
220.325 |
202.115 |
182.226 |
|
Less: CURRENT LIABILITIES &
PROVISIONS |
96.418 |
73.932 |
93.541 |
Total Current Liabilities
|
96.418 |
73.932 |
93.541 |
|
Net Current Assets |
123.907 |
128.183 |
88.685 |
|
|
|
|
|
TOTAL
|
220.876 |
224.469
|
153.733 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Sales Turnover (including other income] |
606.505 |
410.618 |
321.745 |
|
|
|
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
43.986 |
37.210 |
30.174 |
|
Provision for Taxation |
18.083 |
61.237 |
15.202 |
|
Profit/(Loss) After Tax |
25.903 |
24.027 |
14.972 |
|
|
|
|
|
|
Export Value |
0.485 |
0.378 |
NA |
|
|
|
|
|
|
Import Value |
6.928 |
7.246 |
NA |
|
|
|
|
|
Total Expenditure
|
632.408 |
362.248 |
291.571 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
|
4.27
|
5.85
|
4.65 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
60.86
|
9.06
|
9.59 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
13.86
|
12.47
|
12.20 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.35
|
0.29
|
0.26 |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
1.47
|
2.32
|
1.11 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
2.28
|
2.73
|
1.95 |
LOCAL AGENCY FURTHER INFORMATION
PROFILE
The Company was
established in 1996 at Gurgaon (Haryana) in collaboration with Henkel Teroson
GmbH, a wholly-owned subsidiary of the US $ 16 billion Group Henkel KGaA,
Germany. The Company has also set up plants in Parwanoo (HP) and in Chennai. A
supplier to all OEMs in the automobile industry, the Company manufactures
adhesives, sealants and coatings. Certified for both ISO 9002 and QS 9000
quality standards, Henkel Teroson India also has a Technical collaboration with
Sunrise MSI, Japan and with Hong Seong in Korea.
Subject is
ISO 9002 and QS 9000 quality certified company and has a technical
collaboration with Sunrise.
GROUP PROFILE
Anand is a leading
manufacturer of automotive components and systems in India. With a sales turnover of US $ 326 million,
it has the widest range of auto components, supplied to vehicle and engine
produced in the country.
In 1961, Mr Deep C Anand, Chairman of Anand Automotive Systems, founded the
Group’s company – ‘Gabriel India’ in Mumbai for the manufacture of shock
absorbers. Anand comprises nineteen companies spread in eight states of the
country. It has also built up a sizeable export market, currently about 13% of
the total sales of existing products, targeted to reach 30% in the next few years.
Employing over 5000 people, Anand has 800 professionally qualified Engineers,
MBAs and CAs. It invests two per cent of its sales every year on training and
development programmes, conducted by its in-house technical and management
institute - Anand 'U'.
Anand also believes that excellence in technology is the key to future growth.
Anand Technology Services (ATS) in Bangalore is an essential step towards
realisation of this belief. The role of ATS is to upgrade the Group’s
technological competence to worldclass levels, acquiring knowledge and skills
in cutting-edge disciplines, developing products, modules and processes, and
undertaking assignments in areas of IT, Engineering Services & Machine
Building/Design for collaborators and customers.
Its product
range includes
1. Shock Absorbers, Struts, Front Forks
2. Engine Bearings
3. Piston Rings, Castings
4. Gaskets
5. Automotive
Filters
6. Axles, Driveshafts
7.
Industrial Filters
8. Car Care Products, Coolants, Resins
9. Adhesives, Sealants, Coatings
10.
Synchronizer Rings
11. Exhaust
Systems
12. Climate
Control
13.
Hydraulic Brakes
14. Air
Brake Components
15. Friction Material
16. Tools & Dies
17.
Engineering Services
18. Machine
Building and Vibration Monitoring Services
19. Water
& Environment Technologies
Anand Initiatives
> Women Empowerment
> Concept of Operating Engineers
> Integration of Managers with
International Partners
> Corporate Governance
> Overseas Board/Review Meetings
> Supervisory Board in Place
> Exports
> Broadest range of Auto Components in
India
> Anand Technology Services established
in 1995
> Thirty Two manufacturing locations in
8 states of India
Contact
Mr Arvind
Walia (Chief Operating Officer)
74 Industrial Development Colony,
Mehrauli
Road, Gurgaon - 122001
Haryana, India
E-mail : arvind.walia@henkelindia.com
Phone : 91-124-2321749, 2321085
Fax : 91-124-2321401
Mr Sanjay Saraf (General Manager - Operations)
74 Industrial Development Colony
Mehrauli Road
Gurgaon - 122001
Haryana, India
E-mail : sanjay.saraf@henkelindia.com
Phone : 91-124-2321749, 2321085
Fax : 91-124-2321401
Review 2004-05
Overall the Indian Economy had a Robust Growth of 7% over
Previous Year while inflation was contained under 5%. Participating in this
growth, manufacturing as well as service sectors showed healthy growth rates of
8.3% & 8.9% respectively
The Automotive industry continued its momentum and exceeded
one million number of passenger cars production during the year 2004-05. the
buoyancy in this sector is considered to be sustainable over a long period,
resulting in all automative manufacturers initiating programmes for capacity
augmentation as well as introduction of new models
For the year 2005-06 total vehicle production is expected
1.3 millions
Analysis of company
results for year 2004-05
Net sales of the company
at 535.4 Min exceeded previous year sales by 31.4% PBT at 62.2 Min was 29% more
than previous year. this years growth came after two successive high growth
years for the company in which company grew at a CAGR of 35% from year 2001-02.
the company was able to record this growth in excess of the industry growth,
because of introduction of new products specially in the field of NVH products
which now contributes 12% of the total net sales.
The company
continued its dominance in the market share at around 60%.
Relentless
pressure from customers as well as competitors saw unit sale prices coming down
on one hand while raw material prices going up very significantly during the
year.
Innovative
substitution and localization of raw materials and balancing of product mix
contributed to the company maintaining its profitability
Facilities:
New
facility for manufacturing of DGX at Parwanoo got fully operational during the
course of the year with all its initial teething problems resolved. There has
been a delay in getting customers
Approval
for use of local DGX. Approvals from customers are expected shortly.
Facility at
Chennai is under construction. This facility would add 3500 MTs of capacities
of PVC and would also have facilityu to produce preformed parts. This facility
scheduled to be operational by Dec-05 would cater to customers based in South
India
The company
had set up a facility at pune for producing parts with Terocore for a specific
requirement of Tata Motors. However the Pune facility is being put to alternate
use for production of Radiator Coolants and as service godown. The company is
also planning to set up facilities for Wax and preformed parts
Dividend:
Your
Director have declared and paid an Interium Dividend of Rs. 6 per Equity share
and recommended Final Dividend of Rs. 2 per Equity Share. Final dividend will
be distributed to shareholders whose names appear in the Register of Members as
on 26th September, 2005
Introduction
of Underbody Wax for Tata motors Ltd. & Mastic Sealer for Toyota Kirloskar
Motor Private Limited
Fixed
Assets:
¶
Leasehold
Land
¶
Leasehold
Buildings
¶
Plant
& Machinery
¶
Vehicles
¶
Office
Equipments
¶
Computers
¶
Furniture
¶
Goodwill
¶
Non
Compete
It is in
Trade Terms with:
¶
A K
Enterprises India
¶
Anysysco
¶
Chandigardh
Zinc & Residues Private Limited
¶
Chemicals
and Industries
¶
Cinq
Micron Chem Private limited
¶
Gaurav
Enterprises
¶
Gupta
Drum Co.
¶
Nagraj
Industries
¶
Navkar
Iron Store
¶
Oswal
Poly Rubbers
¶
Resinova
Chemie Ltd
¶
Stick
Add Enterprises
¶ Time Packaging Limited
¶
Vee
Kay Industries
¶ Abhishek Poly Pack
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.45.88 |
|
UK Pound |
1 |
Rs.84.61 |
|
Euro |
1 |
Rs.58.01 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
8 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
Unfavourable
& favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
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 |