MIRA INFORM REPORT
|
Report Date : |
26TH June 2006 |
IDENTIFICATION DETAILS
|
Name : |
SHANTI CHEMICALS |
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Registered Office : |
161, Govindappa Naicken Street,
Chennai – 600 001, Tamilnadu, India |
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Country : |
India
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1977 |
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Legal Form : |
A
Partnership Concern with an Unlimited Liability of the partners |
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Line of Business : |
Importers
and traders in all types of Tanning and Industrial Chemicals |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 10000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established concern having satisfactory track. Partners are
experienced, respectable and resourceful businessmen. Their trade relations
are fair. Payments are usually correct and as per commitments. The
concern can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
161, Govindappa Naicken
Street, Chennai – 600 001, Tamilnadu, India |
|
Tel. No.: |
91- 44- 25364904/25381810
(Residence of Mr. Dinesh Jain – 91- 44-25292256) |
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Fax No.: |
91- 44- 25381810 |
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E-Mail : |
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Cell No. ; |
91-98401-31919 |
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Area : |
Owned
- 2000 sq. ft. |
PARTNERS
|
Name : |
Mr. Dinesh Jain |
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Designation : |
Partner |
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Date of Birth/Age : |
33
years |
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Qualification : |
Graduate |
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Experience : |
9
years |
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Name : |
Mr. Arvind jain |
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Designation : |
Partner |
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Date of Birth/Age : |
42
years |
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Qualification : |
Graduate |
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Experience : |
17
years |
BUSINESS DETAILS
|
Line of Business : |
Importers
and traders in all types of Tanning and Industrial Chemicals |
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|
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Imports from : |
·
Spain ·
Brazil ·
China ·
Italy |
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Terms : |
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Purchasing : |
L/C,
D/A and D/P terms. |
GENERAL INFORMATION
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No. of Employees : |
5 |
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Bankers : |
Dena Bank 340 Mint Street, Chennai – 600 003, Tamilnadu |
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Facilities : |
The
concerns do not enjoy facility from its banker. |
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Banking Relations : |
Satisfactory
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Sister Concerns : |
Ř
Fine Chem India 97, Govindappa Naicken
Street, Chennai – 600 001. (Operating from the same
place and dealing in the same products) Ř
Sha Kanajee Juharma,
Chennai Line
of business : Dealers in Camphor Since 1926 |
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Membership : |
Tamilnadu Dyes and Chemical
Merchants Association |
CAPITAL STRUCTURE
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Capital Investment : |
|
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Owned : |
1.750
millions |
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Borrowed : |
-- |
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Total : |
1.750
millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
|
Particulars |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
42.500 |
40.000 |
32.500 |
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Capital Investment |
1.750 |
1.750 |
1.500 |
LOCAL AGENCY FURTHER INFORMATION
We visited the office of the company/concern
where following observations were carried on:
Ř
Name Board could be
sighted and the visibility of the Name Board is high.
Ř
The concern’s office is
easy to locate.
Ř
Subject is located in an
Wholesale chemical market in Parrys corner.
Ř
Items such as Telephone,
Fax Machines, Computers, Air Conditioner and Xerox Machines could be seen at
the concern’s office.
Subject operates from caption
office premises of area valued at Rs. 5.0 millions.
Expected
Sales of March 2006 : Rs. 60.000 millions.
It
is in trade terms with :
v
Golden Chemicals Limited
v
Tanac S. A., Brazil
v
S. A. Pollal Company,
Spain / Japan
v
Tata Chemicals Limited
v
BASF / GNFC / Korea
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] 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. 46.34 |
|
UK
Pound |
1 |
Rs. 84.27 |
|
Euro |
1 |
Rs. 57.96 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
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|
--BUSINESS
SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT
LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT
POINTS |
|
|
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--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT
ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER
MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
46 |
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 |