MIRA INFORM REPORT
|
Report Date : |
12TH June, 2006 |
IDENTIFICATION DETAILS
|
Name : |
HYDERABAD CHEMICAL PRODUCTS
LIMITED |
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Registered Office : |
Plot A-24 / 25, APIE,
Balanagar, Hyderabad – 500 037, Andhra Pradesh, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
11.06.1990 |
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Com. Reg. No.: |
01-11356 |
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CIN No.: [Company Identification No.] |
U24239AP1990PTC011356 |
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TAN No.: [Tax Deduction & Collection Account No.] |
HYDH00375E |
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|
Legal Form : |
A Closely Held Public Limited Liability
Company |
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|
Line of Business : |
Manufacturing of Pesticide
Raw Material like “Technical”, “Carbendazim”, “Cyphermethrin”, “Fenvalerate”
and their formulations which it markets through its parent company. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 750000 |
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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
well-established company having satisfactory track records. Directors are
reported as respectable, experienced and resourceful businessmen. Their trade relations are
reported as fair. General financial position is satisfactory. Payments are
reported as slow but correct. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
Plot A-24 / 25, APIE,
Balanagar, Hyderabad – 500 037, Andhra Pradesh, India |
|
Tel. No.: |
91-40-23772651/2502/1849 |
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Fax No.: |
91-40-23772595 |
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E-Mail : |
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Website : |
http://www.hyderabadchemicals.com |
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Area : |
Owned |
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Location : |
Industrial area |
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Factory 1 : |
Plot
No. 60 & 61, I.D.A. Pasha Mylaram, Medak District, Pachammailaram – 502
307, Andhra Pradesh. |
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Tel. No.: |
91-8455-246350/246351 |
|
Fax No.: |
91-8455-246537 |
DIRECTORS
|
Name : |
Mr. Dipesh K. Shroff |
|
Designation : |
Chairman
|
|
Address : |
39,
Hatkesh Society, NS Road, No. 6, Villapaule, Mumbai – 400056 |
|
Date of Birth/Age : |
03.02.1960 |
|
Date of Appointment : |
21.11.2003 |
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|
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Name : |
Mr. N. Sukumar |
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Designation : |
Managing
Director |
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Address : |
6-3-883/a/10,
Pasmavathi Palace, Punjagutta, Hyderabad, Andhra Pradesh |
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Date of Birth/Age : |
02.10.1951 |
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Date of Appointment : |
11.06.1990 |
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|
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|
Name : |
Ms. Shruti A. Shroff |
|
Designation : |
Director |
|
Address : |
7,
Charotan Society, Old Padra Road, Vadodara – 390020 |
|
Date of Birth/Age : |
24.09.1950 |
|
Date of Appointment : |
21.11.2003 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Hyderabad Chemical Supplies
Limited |
100000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Pesticide
Raw Material like “Technical”, “Carbendazim”, “Cyphermethrin”, “Fenvalerate”
and their formulations which it markets through its parent company. |
|
|
|
|
Products : |
v
Carbendazim Technical
– 38081019 v
Dimethoate Technical –
38081019 v
Ethion Technical –
38081019 v
Cypermethrin Technical v
Fenvalerate Technical v
Formulations
–Insecticides v
Technical
–Insecticides It’s products range include :- v
Acephate Formulations
(75 % SP) v
Acephate Technical v
Carbendazim Technical v
Carbofuram
Formulations (3% CG) v
Chlorlyrilhols
Formulations, etc |
PRODUCTION STATUS
|
Particulars |
Unit |
|
Installed Capacity |
Actual Production |
|
Technical
|
MT |
|
2000 |
824.34 |
|
Formulations
|
MT |
|
7500 |
5485.49 |
|
Wind
Power |
MT |
|
1.00MW |
0.361 KWH |
GENERAL INFORMATION
|
No. of Employees : |
About 500 |
|
|
|
|
Bankers : |
State Bank of Hyderabad,
IDPL Colony Branch, Hyderabad – 500 037, Andhra Pradesh |
|
|
|
|
Facilities : |
Secured Loan Working
Capital – Rs. 14.399 Millions Unsecured Loan Deferred
Sales Tax Liability – Rs. 45.456 Millions From
Director – Rs. 15.850 Millions Total
– Rs. 61.306 Millions |
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Banking Relations : |
Good |
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Auditors : |
Raju & Prasad Chartered Accountants |
|
Address: |
401, Diamond House, Amrutha
Hills, Punjagutta, Hyderabad – 500082
|
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Tel. No. |
91-44-23410404 |
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Fax. No.: |
91-44-23410403 |
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E-Mail.: |
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Parents Company :: |
Ø
Hyderabad Chemical
Supplies Limited Plot A-24 / 25, A.P.I.E., Balanagar, Hyderabad
– 500 037, Andhra Pradesh |
|
|
|
|
Membership : |
v
Pesticides
Manufacturers and Formulators Association of India v
Pesticides Association
of India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20,00,000 |
Equity Shares |
Rs.10/-each |
Rs.20.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,00,000 |
Equity Shares |
Rs.10/-each |
Rs.10.000 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 |
10.000 |
10.000 |
10.000 |
|
2] Reserves & Surplus |
181.170 |
135.354 |
106.052 |
|
Total |
191.170 |
145.354 |
116.052 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
14.399 |
0.000 |
8.701 |
|
2] Unsecured Loans |
61.306 |
63.056 |
63.463 |
|
3] Deferred Tax Liability |
22.455 |
20.579 |
18.633 |
TOTAL BORROWING
|
98.160 |
83.635 |
90.797 |
|
|
|
|
|
GRAND TOTAL |
289.330 |
228.989 |
206.849 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
138.429 |
113.724 |
102.916 |
|
Capital work-in-progress |
7.249 |
-- |
-- |
|
|
|
|
|
|
INVESTMENTS |
10.595 |
8.095 |
8.115 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
107.697 |
82.025 |
99.656 |
|
Sundry
Debtors |
209.266 |
113.512 |
85.344 |
|
Cash
& Bank Balances |
15.569 |
6.017 |
2.036 |
|
Loans
& Advances |
52.018 |
43.939 |
37.777 |
|
Total Current Assets |
384.550 |
245.493 |
224.813 |
|
Less : |
|
|
|
|
Current Liabilities |
213.783 |
121.631 |
111.303 |
Provisions
|
37.710 |
16.692 |
17.692 |
Total Current Liabilities
|
251.493 |
138.323 |
128.995 |
|
Net Current
Assets |
133.057 |
107.170 |
95.818 |
|
|
|
|
|
GRAND TOTAL |
289.330 |
228.989 |
206.849 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
696.992 |
503.139 |
483.646 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
70.403 |
47.547 |
41.094 |
Provision for Taxation
|
22.876 |
16.946 |
11.254 |
Profit/(Loss) After Tax
|
47.527 |
30.601 |
29.840 |
|
|
|
|
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|
Export
Value |
USD 114,300 EURO174600 |
NA |
NA |
|
|
|
|
|
|
Import
Value |
124.052 |
NA |
NA |
|
|
|
|
|
Total Expenditure
|
626.589 |
455.592 |
442.552 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
|
6.81 |
6.082
|
6.169 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
10.10 |
9.450
|
0.846 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total Assets} |
(%) |
13.46 |
12.944
|
12.236 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.36 |
0.327
|
0.354 |
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
1.82 |
1.527
|
1.893 |
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
1.52 |
1.774
|
1.742 |
LOCAL AGENCY FURTHER INFORMATION
History
The company was originally
incorporated as a Private Limited Liability Company and subsequently the legal
form was changed to present w.e.f. 26th April, 1994.
It is a 100% subsidiary of
Hyderabad Chemicals Supplies Limited.
It is a registered small
scale unit.
Operation
During
the year under review the company had achieved satisfactory progress in terms
of production sales, profitability and expenses. The sale have increased by
27.70% from Rs. 513.600 in the previous year to Rs. 656.200 during the year
under review. Profit before tax had registered a growth of 48% from Rs. 47.500
to Rs. 70.000. The profit after tax had improved by 55% from Rs. 30.000 to Rs.
47.500
Production
The weedicide tracjnical plant had been retrofitted
to manufacturer pretilachlor technical will be started during current year to
strengthen the weedicide range. The commercial production for Acetamiprid
Technical and Profenphos Technical had been started during the year. The
customer base been future strengthened
Export
The
company had made a small benign in
export and achieved export sale of Rs. 27.000 during the year. Efforts are on
to further boost the export activity in the coming years.
New Site
Parent
Company M/s. Hyderabad Chemical Supplies Limited setting up a formulations unit
at Jammu the proposal for starting a new formulation unit at Gomavarma near
Hyderabad had been shelved for the present. However experiments are containing
for cultivation of geranium and other aromatic plants as well as extraction of
oils at Gomavaram site
Fixed Assets
v
Land
v
Building
v
Plant & Machinery
v
Furniture & Fixture
v
Office Equipment
v
Electrical Installation
v
Vehicles
v
Computer
v
Factory Equipment
|
Name
of the company |
HYDERABAD CHEMICAL
PRODUCTS LIMITED |
|
Presented By |
N.
Sukumar |
|
1)
Date and description of instrument creating the change |
25.02.1994
Agreement for hypothecation of raw material, stock in process, finished
goods, book debts and receivables |
|
2)
Amount secured by the charge/amount owing on the securities of charge |
Rs.
101.000 millions |
|
3)
Short particular of the property charged. If the property acquired is subject
to charge, date of the acquired of the property should be given |
Raw
material, stock in process, finished goods, book debts, Plant &
machinery, Land and Building |
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
Interest
at prime leading rate minus 1% at present 10% monthly rests. Rate of interest
as applicable by the bank from time to time
|
|
5)
Name and Address and description of the person entitled to the charge. |
State
Bank of Hyderabad, IDPL Colony Branch, Hyderabad – 500 037, Andhra Pradesh |
|
6)
Date and brief description of
instrument modifying the charge |
29.07.2005
agreement of hypothecation goods & assets Agreement
of loan for overall limit Agreement
for pledge of goods & assets Deed
of guarantee for overall limit Letter
regarding the grant of individual limits within overall limit |
|
7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
Total
limits enhanced from Rs. 67.500 to 101.00 Millions Details
of limit C
C – Rs. 15.000 DDP
– Rs. 5.000 LCS
– Rs. 80.000 BG
– Rs. 1.000 Total
– Rs. 101.000 Millions |
profiles
Subject has been a pioneer in manufacturing pesticide formulations
for over three decades.
With its backward integration venture to manufacture pesticide
actives, Hyderabad Chemicals has carved a unique image in the market by
offering a vast range of products to meet the plant protection needs of a wide
spectrum of crops.
Hyderabad Chemicals, an ISO 9001-2000 company is primarily focused to provide
quality products at competitive prices and with optimum customer service.
Farmers Training Programme:
The company conduct two programmes every day in the villages to interact with
the farmers and educate them on various aspects of agricultural practices and
Safe use of Pesticides through audio visual presentations. They answer the
Questions posed by the individual farmers.
Dealers Training Programme:
Since the Dealer is the vital link between the company and the farmers, it
conduct one day dealer training Programmes on use of Plant Protection Chemicals.
Field Visits:
About 400 of Field workers visit the farmers' fields and offer them on the spot
advise.
Demonstration Projects:
They conduct about 500 Demonstrations per annum for the benefit of the
farmers.
Soil Testing:
Portable Soil Testing Kits with the use of which identify the quality of the
soil and recommend necessary measures to the farmers on the spot.
Mailing Information to the Farmers:
The company had a database of 90,000 Progressive farmers with whom it
communicate periodically on matters of interest to the farmers.
Factory Visits for the Farmers:
This is an interactive exercise wherein the farmers are brought to
manufacturing units at expense in buses/trains, to enable them to get first
hand information on Production, Quality, Label claims, application methods and
Safe use of Pesticides. This will also give them an occasion to clarify their
doubts on farm Practices.
Karshak Sahaya Vani - Online
Information Service (Agriculture on Mobile)
A novel initiative for farmers'
education / advise is the launch of "Karshak Sahaya Vani" by
Hyderabad Chemical Supplies Limited in collaboration with Dr. Ramesh Gandhi
Foundation. "Karshak Sahaya Vani" is an online farmer service center.
Any farmer from the remotest village of Andhra Pradesh can call up BSNL Toll
Free No. 1600 33 4012 for an instant answer for his queries with respect to
farm practices from Sowing to Harvesting including Plant Protection. The
queries are answered / doubts clarified instantly by Agricultural Scientists
with vast experience and expertise from the Resource Centre at Hyderabad.
Based on the telephonic discussion, in
case need arises, a technical representative of the company located in the
respective district head quarters is advised to visit the farmer for on the
spot study and offer right recommendation. A computerised data base on the
farmers, the issues raised by them and the advise offered is maintained to
facilitate easy retrieval of information for any future need. The response from
the farmers to the programme has been over-whelming. It is gratifying to note
that a number of satisfied farmers do call back "Karshak Sahaya Vani"
sharing feedback on the results based on the advise. Apart from the farming
community, even the Agro Input dealers / Retailers use this service to enhance
knowledge level and to take care of their customer queries.
The company shares the office
with its parent company.
AS PER WEBSITE
Hyderabad Chemicals has been
a pioneer in manufacturing pesticide formulations for over three decades.
With its backward integration
venture to manufacture pesticide actives, Hyderabad Chemicals has carved a
unique image in the market by offering a vast range of products to meet the
plant protection needs of a wide spectrum of crops.
Hyderabad Chemicals, an ISO 9001-2000 company is primarily focused to provide
quality products at competitive prices and with optimum customer service.
Export
& Import
They are a dedicated team
striving to provide Crop Protection solutions to the Indian farming community
as well as to Agriculturalists across the globe.
They do customized synthesis of Pesticide Formulations to meet varied
requirements of customers across the globe. Their products are exported to
several markets of Europe, Middle East and to some of the Asian Countries. They
are gradually establishing their presence in potential markets like North
America, Sub-Sahara and the African countries. All their products are supported
with detailed technical data as per the international specification and
standards. They aim at customized, time bound delivery of quality products at
highly competitive prices.
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 records 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] 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.46.04 |
|
UK
Pound |
1 |
Rs.84.73 |
|
Euro |
1 |
Rs.57.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
60 |
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 |