Attachment 1

 

Report Update On

15th March, 1999

 

 

Report on

ARYAVART TRADING PRIVATE LIMITED

Correct  Name

ARYAVART CHEMICALS LIMITED

 

 

Registered Office

319 Arenja Corner, Plot No. 71, Sector 17, D. B. C> Vashi, New Bombay – 400 705, INDIA

 

 

Tel. No.

91-22-761 9994 / 763 4619

Fax No.

91-22-763 2809

E-Mail

--

Telex

--

 

 

Attachment 2

 

S U M M A R Y

 

 

Incorporated

1977

Status

Satisfactory

 

 

 

 

Registration No.

19821

Chief Executive

Mr. T. V. C. Nair

 

 

 

 

Capital  (Rs.)

3.632 millions

Payments

Slow but correct

 

 

 

 

Sales   (Rs.)

141.000 millions

Litigation

--

 

 

 

 

Net Worth (Rs.)

12.995 millions

Banking Reputation

Satisfactory

 

 

 

 

No. of Employees

50

Auditors

Not available

 

 

 

 

Credit Rating

Ba (See attachment 3)

 

 

 

INDUSTRY

 

The chemical industry which had been on a path of high growth since liberalisation, slowed down in FY’97. Year-on-year growth rate in Index of Industrial Production (IIP) for chemical production in FY’96. This slowdown has been attributed to a number of reasons. The overall slowdown in economy, including that of the agriculture sector has bad on impact on the chemical industry. The impact of reforms on the industry has also been severe.

 

The industry is likely to continue to be a net importer although imports may be lower in the coming year due to larger capacities in the domestic market. The competitiveness of the industry will be severely tested as import duties on the furnished products come down further and foreign major seek to establish a toehold in the country.

 

************************

 

FACTORY

 

Plot No. G-14/3, MIDC Industrial Area, Taloja, Dist. Raigad, Maharashtra, INDIA

 

BRANCH

 

K                 26/807 Vimala Building, Rice Bazar Road, Trichur – 680 001, INDIA

K                 C/o. Anang H. Parikh, C/12 Akshar Apartments, Vastrapur, Ahmedabad, Gujarat, INDIA

 

HISTORY

 

The company was incorporated on 29th August, 1977 at Mumbai in Maharashtra having Company Registration Number 19831 as a Private Limited Company. The company was then converted into a Deemed Public Limited company.

 

LEGAL FORM

 

It is a Deemed Public Limited Liability company.

 

DIRECTORS

 

Mr. T. V. C. Nair

Managing Director

Mr. Ajay C. Nair

Director

Mrs. Shobhana C. Nair

Director

 

PARTICULARS OF CHIEF EXECUTIVE

 

Name

Mr. T. V. C. Nair

Designation

Managing Director

Age

55 years

Qualification

Science Graduate

Experience

25 years

 

MAJOR SHAREHOLDERS

 

The entire share capital of the company is held by the directors and their relatives.

 

BUSINESS

 

The company is engaged in manufacturing of Paint Driers and PVC Stabilisers.

 

The company has a installed capacity of 20,000 TPA per annum.

 

The company is a Registered Small Scale Industry.

 

The company imports Raw Materials from Germany & other European countries against L/C terms.

 

The company is in trade terms with Asian Paints (India) Limited, Mumbai.

 

The company operates from a caption owned office premises of 1,100 sq.ft. Caption factory of area admeasuring 6,00 sq.ft. is also owned by the company.

 

SISTER CONCERNS

 

K                 Aryavart Additives Private Limited

-        Manufacturers of PVC Stabilisers

 

MEMBERSHIPS

 

K                 Indian Merchants’ Chambers

K                 All India Plastic Manufacturers Association

K                 Basic Chemicals

K                 Pharmaceuticals & Cosmetics Export Promotion Council

K                 Institute of Economic Studies

 

BANKERS

 

K                 Saraswat Co-operative Bank Limited, Vashi Branch, New Mumbai

Tel. No.      91-22-768 1928

 

AUDITORS

 

Nor available

 

 

 

FINANCIAL INFORMATION

 

The company's latest financial information for the period ended 31st March, 1998 is enclosed herewith.

 

CAPITAL STRUCTURE

 

Authorised Capital :

1,000,000

Equity Shares of Rs.10/- each

Rs.10.000 millions

 

 

 

Issued, Subscribed & Paid-up Capital :

363,200

Equity Shares of Rs.10/- each

Rs.3.632 millions

 

COMMENTS

 

Given name of Aryavart Trading Private Limited is incorrect as no such company has been registered under this name.

 

ARYAVART CHEMICALS LIMITED should be the required name.

 

Subject company is controlled and financed by Nair family. Directors are reported as experienced, respectable 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.

 

ABRIDGED BALANCE SHEET AS ON 31ST March, 1998

[figures are in Rupees Millions]

 

SOURCES OF FUNDS

 

 

 

31.03.1998

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

3.632

2] Reserves & Surplus

 

 

9.363

 

 

 

 

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

18.158

2] Unsecured Loans

 

 

13.932

 

 

 

 
GRAND TOTAL

 

 

45.085

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

13.899

 

 

 

 

INVESTMENTS

 

 

0.067

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

Total Current Assets

 

 

53.236

Less :

 

 

 

Current Liabilities & Provisions

 

 

22.117

Net Current Assets

 

 

31.119

 

 

 

 
GRAND TOTAL

 

 

45.085

 

IMPORTANT FINANCIAL INFORMATION FOR LAST TWO PERIODS

[figures are in Rupees Millions]

 

PARTICULARS

 

 

31.03.1998

31.03.1997

Sales Turnover

 

141.000

132.800

[including other income]

 

 

 

 

 

 

 

Profit/(Loss) Before Tax

 

1.814

1.328

Provision for Taxation

 

0.424

0.989

Profit/(Loss) After Tax

 

1.390

0.339

 

Attachment 3

 

 

SCORE SHEET

 

SCORE

CREDIT 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. Maybe drawn to slightly difficult position as unfavourable conditions arise. Minimal assurance for timely payment on interest and principal sums

Moderate

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively limited or considered not known. Capability to pay both interest and principal sums is doubtful

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

 

Attachment 4

 

 

INDIA

 

In 1998, the Hindu-nationalist party, the BJP was elected and formed a new Government. Soon after, however, both India and Pakistan conducted nuclear tests and tension in Kashmir grew. 1999 is not likely to be much calmer with regard to neighbouring Pakistan, but it is believed that the tensions will be more loud than physical in nature. India is growing at a healthy 5% pace and is expected to continue its level for the coming year. Inflation has been high however and was 16.3% for the year, as of the end of September, 1998. 1999 inflation is expected to be reduced to 9.3%, still high. Foreign reserves have grown by $2.1 billion to $26.5 billion as of November, in comparison to one year earlier. The trade deficit and current account balance remain in red.

 

Ranked among the ten most corrupt nations in the world, the parallel economy is conservatively estimated to be Rs.300,000 millions – roughly equal to the Gross Domestic Product.