MIRA INFORM REPORT
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Report Date : |
16th May, 2006. |
IDENTIFICATION DETAILS
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Name : |
MERCHEM LIMITED |
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Registered Office : |
2nd Floor,
Malankara Centre, M. G. Road, Ernakulam – 682 035, Kerala, India. |
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Country : |
India |
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Financials (as on) : |
31.03.2004 |
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Date of Incorporation : |
31.01.1994 |
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CIN No.: |
U24299KL1994PLC007681 |
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Com. Reg. No.: |
09-7681 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
CHNM00556D |
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Legal Form : |
A
Closely Held Public Limited Liability Company. |
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Line of Business : |
The
company is Manufacturing of Accelrrators, Antioxide, Rubber Processing aids,
Agrochemicals, Water treatment Chemicals and Specialty Chemicals. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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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 275000 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track. Trade relations are
fair. Payments are reported as correct and as per commitment. General
financial position is satisfactory. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
2nd Floor,
Malankara Centre, M. G. Road, Ernakulam – 682 035, Kerala, India. |
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Tel. No.: |
91-484-2381617/
2374120/2382285 |
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Fax No.: |
91-484-2380199/2348809 |
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E-Mail : |
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Website: |
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Location: |
Rented |
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Factory : |
45
A Development Plot, Kalamassery, Ernakulam 683 104, Kerala, India
(Established in 1981 - A Public Limited Company) |
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Tel. No.: |
91-484-532877 |
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Location: |
Owned |
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Factory : |
Muthinagam Road, Eloor
North, Udyogamandal - 683 501, Enakulam - 683 501, Kerala, India |
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Tel. No.: |
91-484-559457/
2546526 |
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Location: |
Owned |
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Factory : |
4/1
C Development Area, Edayar, P. O. Muppathadam, Ernakulam - 603 102, Kerala, India. |
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Tel. No.: |
91-484-232334/
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Location: |
Owned |
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Branch : |
G-144,
Preet Vihar, Vikas Marg, New Delhi 110 092, INDIA |
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Tel. No.: |
91-11-223
3969 |
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Fax No.: |
91-11-223
3969 |
DIRECTORS
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Name : |
Mr. Pulinat Ettan Thomas |
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Designation : |
Managing
Director |
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Address : |
Pulinat,
50/934, A, Bank Juction, Edappally, Ernakulam - 682 024, Kerala, India. |
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Date of Birth/Age : |
25.04.1949 |
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Date of Appointment : |
01.11.1995 |
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Name : |
Mr. Pulinat Mathai Raju |
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Designation : |
Whole
Time Director |
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Address : |
Pulinat,
House No. M. 10/6, Changampuzha Nagar, Ernakulam - 682 033, Kerala, India. |
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Date of Birth/Age : |
20.02.1960 |
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Date of Appointment : |
31.01.1994 |
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Name : |
Mr. George V. E. |
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Designation : |
Director |
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Name : |
Mr. S. N. Sunderesan |
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Designation : |
Director |
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Address : |
Plot
No. 14, Rajiv Gandhi Nagar, Sowripalayam, Coimbatore – 641 028, Tamilnadu,
India. |
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Date of Birth/Age : |
13.10.1931 |
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Date of Appointment : |
05.08.1996 |
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Name : |
Mr.
V V Kamath |
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Designation : |
Director |
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Address : |
No.
93, Panchajanya, 13th Main, Aicoboo Nagar, BTM Layout, Stage 1,
Banglore – 560 068, Karnataka, India. |
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Date of Birth/Age : |
13.10.1931 |
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Date of Appointment : |
05.08.1996 |
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Name : |
Mr.
A K Nair |
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Designation : |
Director |
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Address : |
M-10/15,
Changampuzha Nagar, Kalamassery Cochin, Ernakulam – 682 033, Kerala, India. |
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Date of Birth/Age : |
27.08.1943 |
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Date of Appointment : |
26.02.2001 |
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Name : |
Mr.
Anitha Venunath |
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Designation : |
Director |
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Address : |
Ashraya,
Periyar Nagar, Near Uliyannur Ferry, Thikkattukara P. O. Aluva, Ernakulam –
683 106, Kerala, India. |
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Date of Birth/Age : |
12.02.1956 |
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Date of Appointment : |
20.09.2002 |
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Name : |
Mr.
B Sudhakar Shetty |
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Designation : |
Director |
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Address : |
298,
Canara Bank Colony, Nagarbhavi Road, Banglore – 560 072, Karnataka, India. |
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Date of Birth/Age : |
20.03.1950 |
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Date of Appointment : |
23.05.2005 |
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Name : |
Mr.
Anilkumar G |
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Designation : |
Secretary |
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Address : |
Satheesh
Bhavan, Kidarakuzhy, Parasuvaikal P.O., Thikkattukara – 695 508, Kerala,
India |
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Date of Birth/Age : |
27.05.1981 |
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Date of Appointment : |
17.06.2004 |
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Name : |
Mr.
Bhagawandas. T |
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Designation : |
Nominee
of Canara bank Venture Capital Fund Limited |
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Name : |
Mr. Alexander T. |
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Designation : |
KSIDS Nominee |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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01.
Aleyamma Thomas &
P. E. Thomas |
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02.
Canbank Venture
Capital Fund Limited |
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03.
Jolly Thomas and
Rajpaul |
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04.
O.J.Jose and
P.E.Thomas |
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05.
KSIDC |
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06.
Madhu Devi |
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07.
P. E. Thomas |
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08.
Vithoga Chemicals
Private Limited |
BUSINESS DETAILS
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Line of Business : |
The
company is Manufacturing of Accelrrators, Antioxide, Rubber Processing aids,
Agrochemicals, Water treatment Chemicals and Specialty Chemicals. |
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Products : |
Rubber
and Chemicals |
PRODUCTION STATUS
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Particulars |
Installed Capacity |
Actual Production |
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Rubber Chemicals |
3000 |
2361.13 |
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Thiazole activated |
200 TPA |
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2-Mercaptobenzothiazole |
250 TPA |
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2,2' Dibenzothiazyl
disulphide |
250 TPA |
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Zinc mercaptobenzothiazole |
200 TPA |
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N-Cyclohexyl-2-benzothiazole-2-sulphenamide |
250 TPA |
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Tetramethylthiuram
disulphide |
250 TPA |
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Zinc diethylk
dithiocarbamate |
100 TPA |
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1,2-Dihydro-2,2,4-trimethylquionline
(Polymerised) |
150 TPA |
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Phenol styrenated
[Mixture], Benzothiazyl-2-cyclohexyl sulphenamide,
Benzothiazyl-2-sulphenemorpholide |
150 TPA |
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Zinc director-n-butyl
dithiocarbamate |
200 TPA |
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GENERAL INFORMATION
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No. of Employees : |
80 |
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Bankers : |
·
State Bank of India ·
IDBI ·
State Bank of
Travancore |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors : |
K.
Varghese and Company, Kollam, Kerala, INDIA |
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Qualification: |
Chartered
Accountants |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 70.000 Millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5200000 |
Equity
Shares |
Rs. 10/- each |
Rs. 52.000 Millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
|
52.000 |
52.000 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
18.815 |
11.453 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH
|
|
70.815 |
63.453 |
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LOAN FUNDS |
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1] Secured Loans |
|
90.109 |
83.277 |
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2] Unsecured Loans |
|
20.383 |
18.364 |
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TOTAL
BORROWING
|
|
110.492 |
101.641 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
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TOTAL
|
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181.307 |
165.094 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
|
87.586 |
87.915 |
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Capital work-in-progress
|
|
1.632 |
1.613 |
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INVESTMENT
|
|
0.000 |
0.000 |
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DEFERREX TAX ASSETS
|
|
3.012 |
1.313 |
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
|
45.400 |
38.808 |
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Sundry Debtors
|
|
71.178 |
60.451 |
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Cash & Bank Balances
|
|
4.485 |
5.128 |
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Other Current Assets
|
|
0.000 |
0.000 |
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Loans & Advances
|
|
10.012 |
11.697 |
Total Current Assets
|
|
131.075 |
116.084 |
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Less : CURRENT LIABILITIES & PROVISIONS
|
|
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Current Liabilities
|
|
42.754 |
45.208 |
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Provisions
|
|
0.000 |
0.000 |
Total Current Liabilities
|
|
42.754 |
45.208 |
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Net Current
Assets
|
|
88.321 |
70.876 |
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MISCELLANEOUS EXPENSES
|
|
0.756 |
3.377 |
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TOTAL
|
|
181.307 |
165.094 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
|
346.176 |
283.435 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
9.332 |
9.205 |
Provision for Taxation
|
|
(0.735) |
(0.345) |
Add: Deferred Tax Benefit
|
|
1.699 |
1.011 |
Profit/(Loss) After Tax
|
|
10.295 |
9.871 |
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|
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Export Value
|
|
34.974 |
30.757 |
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|
|
|
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Total Expenditure
|
|
306.471 |
244.645 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
|
|
2.97 |
3.48 |
|
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|
Net Profit Margin
(PBT/Sales) |
(%) |
|
2.70 |
3.25 |
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Return on Total Assets
(PBT/Total Assets} |
(%) |
|
4.18 |
4.45 |
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Return on Investment (ROI)
(PBT/Networth) |
|
|
0.13 |
0.15 |
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Debt Equity Ratio
(Total Liability/Networth) |
|
|
2.16 |
2.31 |
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|
Current Ratio
(Current Asset/Current
Liability) |
|
|
3.07 |
2.57 |
LOCAL AGENCY FURTHER INFORMATION
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 caustic soda industry,
with a size of around Rs.36 bn, comprises around 5% of the chemical process
industry in India.
Caustic soda is manufactured/sold in liquid (lye) or solid (flakes)
form. It finds usage in diverse applications such as in the manufacture of
paper, alumina, man-made and cotton fibres, soaps/detergents and a host of chemicals. Chlorine is a co-product and
for every tonne of caustic soda manufactured, 0.88 tonnes of chlorine is
produced. Chlorine is used in a number of applications such as in the
manufacture of PVC and several other organic/inorganic
chemicals.
Soda ash, chemically known as
Sodium Carbonate is a versatile inorganic chemical with a wide variety of
applications. It is largely used in the manufacture of detergents, silicates
and several downstream chemicals. The domestic soda ash industry has been
facing the onslaught of imports for quite some time.
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.
Business:
The company uses raw
materials like Sulphur, Aniline, Aceton, Carbon Disulphide, Chlorine,
Dimethylamine, Diethylamine, Caustici Soda, Morpholine.
The company exports chemicals
like Tetramethylthiuram disulphide, 1,2-Dihydro, 2,2,4-trimethylquinoline,
2,2'-Dibenzothiazyl disulphide, Zinc mercaptobenzothiazole,
N-Cyclohexyl-2-benzothiazole-2-sulphenamide, Zinc director-n-butyl
dithiocarbamate, Thiazole activated.
The company is ISO 9002
certified by BVQI.
Performance of the Company
The
gross turnover of the company for the financial year ended 31.03.2004 increased
to Rs. 337.200 Millions compared to Rs. 281.000 Millions in the previous year,
registering a growth a of 20%. Despite the upward trend in raw material costs
due to hardening of crude oil petroleum feed stock prices and the continuous downward trend in the selling
price of products, the company maintained its net profit at the same level.
Exports:
The company has achieved an export turnover of Rs. 35.000 Millions during the period under review. The company’s products were well received by tyre majors and substaintial increase in the business is expected in the coming years.
Dividend:
The Directors recommended payment of 5% dividend as done in the last year. Though the company is capable of paying more to its share holders, wish to be conservative taking in to account the prevailing high crude oil price.
FIXED
ASSETS:
Land & Land development, Building, Plant & Machinery, Electrical Installation, Electrical & Lab Equipment, Furniture & Fixture, Library Books, Vehicles etc.
|
Name
of the company |
MERCHEM LIMITED |
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Presented By |
Mr. Pulinat Ettan
Thomas, Managing Director |
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1)
Date and description of instrument creating the change |
14.05.1997.
Deed of Hypothecation of Goods and Assets in favour of State Bank of India
(SBI) |
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2)
Amount secured by the charge/amount owing on the securities of charge |
The
Loan of Rs. 33.500Millions |
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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 |
For
Term Loan of Rs. 33.500Millions All
present and future goods book debts and all other movables assets of the
borrower including documents of title goods outstanding moneys, receivables
including receivables by way of cash assistance and /or cash incentives under
the cash Incentive scheme or any other scheme claims including claims by way
of refund customs/exice duties under the Duty Draw back Credit scheme, or any
other scheme, bills, invoice, documents, contracts, insurance, policies,
guarantee, engagements, securities,
investments, and rights and the present machinery listed in the scheduled
hereunto and all future machinery belonging to or in the possession or under
the control of the borrower wherever lying stored and kept and whether in
possession of the borrower or of the bank or of any third party whether in
India or elsewhere throughout the world (including all such goods, other
movable assets as may be in course of shipment transit or delivery)
(hereinafter referred to as ‘the said goods and assets”) shall stand
hypothecated to the bank by way of first charge. |
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4)
Gist of the terms and conditions and extent and operation of the charge. |
Facilities
granted / advance of Rs. 33.500 Millions Charge
created on 14.05.1997 operates as security for the repayment by the company
to State Bank of India for its loan of Rs. 33.500 Millions with all interest
at the respective agreed rates, additional interest, liquidated damages, premium
on prepayment or on redemption cost, charges, expenses and other monies
payable by the company to State Bank of India in terms of Loan Agreement
dated 14.05.1997. The
charges in favour of State Bank of India under the said Hypothecation is on
the company’s stock of raw materials, semi finished and finished goods and
consumable stores and such other movables as may be specifically permitted to
by the lender for securing the said
loan. The
company has undertaken at its expense to
kept the said goods in marketable and good conditions and insure the
same in joint names of the borrower and lenders. |
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5)
Name and Address and description of the person entitled to the charge. |
State
Bank Of India Shanmugham
Road, Branch, Ernakulam. |
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6)
Date and brief description of instrument modifying the charge |
Supplemental
Agreement of loan for increase in the overall Limit in form C.1. A dated
31.01.2002. Supplemental
Agreement of Hypothecation of goods and Assets for increase in the overall
limit in form C.2 – A dated 31.012.2002 Letter
regarding the grant of Individual limits with in the overall limit dated
31.01.2002. |
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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. |
On
31.01.2002 the existing loan limits of Rs. 35.000 Millions was enhanced to
Rs. 56.000 Millions as follows:-
The
existing charge on the goods and assets were extended to the enhanced loan
limits of Rs. 56.000 Millions Interest
rate was revised to 3.50% over SBAR. |
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|
Name
of the company |
MERCHEM LIMITED |
|||||||||||||||||||||||||||||||||||||||
|
Presented By |
Mr. Pulinat Ettan
Thomas, Managing Director |
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|
1)
Date and description of instrument creating the change |
14.05.1997.
Deed of Hypothecation of Goods and Assets in favour of State Bank of India
(SBI) |
|||||||||||||||||||||||||||||||||||||||
|
2)
Amount secured by the charge/amount owing on the securities of charge |
The
Loan of Rs. 33.500Millions |
|||||||||||||||||||||||||||||||||||||||
|
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 |
For
Term Loan of Rs. 33.500Millions All
present and future goods book debts and all other movables assets of the
borrower including documents of title goods outstanding moneys, receivables
including receivables by way of cash assistance and /or cash incentives under
the cash Incentive scheme or any other scheme claims including claims by way
of refund customs/exice duties under the Duty Draw back Credit scheme, or any
other scheme, bills, invoice, documents, contracts, insurance, policies,
guarantee, engagements, securities,
investments, and rights and the present machinery listed in the scheduled hereunto
and all future machinery belonging to or in the possession or under the
control of the borrower wherever lying stored and kept and whether in
possession of the borrower or of the bank or of any third party whether in
India or elsewhere throughout the world (including all such goods, other
movable assets as may be in course of shipment transit or delivery) (hereinafter
referred to as ‘the said goods and assets”) shall stand hypothecated to the
bank by way of first charge. |
|||||||||||||||||||||||||||||||||||||||
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
Facilities
granted / advance of Rs. 33.500 Millions Charge
created on 14.05.1997 operates as security for the repayment by the company
to State Bank of India for its loan of Rs. 33.500 Millions with all interest
at the respective agreed rates, additional interest, liquidated damages,
premium on prepayment or on redemption cost, charges, expenses and other
monies payable by the company to State Bank of India in terms of Loan
Agreement dated 14.05.1997. The
charges in favour of State Bank of India under the said Hypothecation is on
the company’s stock of raw materials, semi finished and finished goods and
consumable stores and such other movables as may be specifically permitted to
by the lender for securing the said
loan. The
company has undertaken at its expense to
kept the said goods in marketable and good conditions and insure the
same in joint names of the borrower and lenders. |
|||||||||||||||||||||||||||||||||||||||
|
5)
Name and Address and description of the person entitled to the charge. |
State
Bank Of India Shanmugham
Road, Branch, Ernakulam. |
|||||||||||||||||||||||||||||||||||||||
|
6)
Date and brief description of instrument modifying the charge |
Supplemental
Agreement of loan for increase in the overall Limit in form C.1. A dated
08.11.2002. Supplemental
Agreement of Hypothecation of goods and Assets for increase in the overall
limit in form C.2 – A dated 08.11.2002 Letter
regarding the grant of Individual limits with in the overall limit dated
08.11.2002. |
|||||||||||||||||||||||||||||||||||||||
|
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. |
On
31.01.2002 the existing loan limits of Rs. 35.000 Millions was enhanced to
Rs. 56.000 Millions as follows:-
The
existing charge on the goods and assets were extended to the enhanced loan
limits of Rs. 75.000 Millions Interest
rate was revised to 3.50% over SBAR present rate effective being 14.5%p.a. |
|||||||||||||||||||||||||||||||||||||||
|
Name
of the company |
MERCHEM LIMITED |
|||||||||||||||||||||||||||
|
Presented By |
Mr. Pulinat Ettan
Thomas, Managing Director |
|||||||||||||||||||||||||||
|
1)
Date and description of instrument creating the change |
14.05.1997.
Deed of Hypothecation of Goods and Assets in favour of State Bank of India
(SBI) |
|||||||||||||||||||||||||||
|
2)
Amount secured by the charge/amount owing on the securities of charge |
The
Loan of Rs. 33.500Millions |
|||||||||||||||||||||||||||
|
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 |
For
Term Loan of Rs. 33.500Millions All
present and future goods book debts and all other movables assets of the
borrower including documents of title goods outstanding moneys, receivables
including receivables by way of cash assistance and /or cash incentives under
the cash Incentive scheme or any other scheme claims including claims by way
of refund customs/exice duties under the Duty Draw back Credit scheme, or any
other scheme, bills, invoice, documents, contracts, insurance, policies,
guarantee, engagements, securities,
investments, and rights and the present machinery listed in the scheduled
hereunto and all future machinery belonging to or in the possession or under the
control of the borrower wherever lying stored and kept and whether in
possession of the borrower or of the bank or of any third party whether in
India or elsewhere throughout the world (including all such goods, other
movable assets as may be in course of shipment transit or delivery)
(hereinafter referred to as ‘the said goods and assets”) shall stand
hypothecated to the bank by way of first charge. |
|||||||||||||||||||||||||||
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
Facilities
granted / advance of Rs. 33.500 Millions Charge
created on 14.05.1997 operates as security for the repayment by the company
to State Bank of India for its loan of Rs. 33.500 Millions with all interest
at the respective agreed rates, additional interest, liquidated damages,
premium on prepayment or on redemption cost, charges, expenses and other
monies payable by the company to State Bank of India in terms of Loan
Agreement dated 14.05.1997. The
charges in favour of State Bank of India under the said Hypothecation is on the
company’s stock of raw materials, semi finished and finished goods and
consumable stores and such other movables as may be specifically permitted to
by the lender for securing the said
loan. The
company has undertaken at its expense to
kept the said goods in marketable and good conditions and insure the
same in joint names of the borrower and lenders. |
|||||||||||||||||||||||||||
|
5)
Name and Address and description of the person entitled to the charge. |
State
Bank Of India Shanmugham
Road, Branch, Ernakulam. (Transferred to State Bank of India Commercial
Branch, Express House, kaloor Cochin – 682 017 w. e. f. 14.08.2000 ) |
|||||||||||||||||||||||||||
|
6)
Date and brief description of instrument modifying the charge |
Supplemental
Agreement of Hypothecation of goods and Assets for increase in the overall
limit in form C.2 – A dated 11.12.2004 Letter
regarding the grant of Individual limits with in the overall limit dated
11.12.2004. |
|||||||||||||||||||||||||||
|
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. |
On
11.12.2004 the existing loan limits of Rs. 75.000 Millions was enhanced to
Rs. 90.000 Millions as follows:-
The
existing charge on all present and future goods book debts, and other movable
assets were extended to the enhanced loan limits of Rs. 90.000 Millions. |
|||||||||||||||||||||||||||
|
Name
of the company |
MERCHEM LIMITED |
|
Presented By |
Mr. Pulinat Ettan
Thomas, Managing Director |
|
1)
Date and description of instrument creating the change |
Memorandum
of Deposit of Title Deeds on
11.05.2001. Agreement
of Hypothecation of Goods and Assets dated 11.05.2001. Letter
Regarding the grant of individual limits within the overall Limit dated
11.05.2001. |
|
2)
Amount secured by the charge/amount owing on the securities of charge |
Rs.
6.000Millions (Bank Gurantee) |
|
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 |
Collateral
Security of company’s immovable properties namely, 59 cents of land in sy.
No. 94/22 pt. And 23 pt. In Edayar Kara,Kadungallur Village, North parur
Taluk, Alwaye Sub _ District Ernakulam District together with all buildings
existing and /or to be construcred. The
movable Current Assets of the company’s viz. all present and future goods
book debts and all other movables assets of the borrower including documents
of title goods outstanding moneys, receivables including receivables by way
of cash assistance and /or cash incentives under the cash Incentive scheme or
any other scheme claims including claims by way of refund customs/exice
duties under the Duty Draw back Credit scheme, or any other scheme, bills,
invoice, documents, contracts,
insurance, policies, guarantee, engagements, securities, investments, and
rights and the present machinery namely :- v
NaMBT Plant v
Sulphenamide Plant v
Thiazole Plant v
Antioxidant Plant v
Electrical
Installation v
Boiler with
accessories v
Pollution Control
devices v
Stroge Tanks v
Generator v
Inverter v
Lab Equipment v
Transformer v
Furniture &
Fittings v
Chilled Water Plant v
Edayar Plant all
future machinery belonging to or in the possession or under the control of
the borrower wherever lying stored and kept and whether in possession of the
borrower or of the bank or of any third party whether in India or elsewhere
throughout the world (including all such goods, other movable assets as may
be in course of shipment transit or delivery) |
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
Interest
rate was determined by the bank from time to time. Repayable on demand. |
|
5)
Name and Address and description of the person entitled to the charge. |
State
Bank Of Travancore, Industrial
Finance Branch, Malankara Center, M.
G. Road, Ernakulam – 35. |
|
6)
Date and brief description of instrument modifying the charge |
Not
Applicable |
|
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. |
Not
Applicable |
|
Name
of the company |
MERCHEM LIMITED |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Presented By |
Mr. Pulinat Ettan
Thomas, Managing Director |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1)
Date and description of instrument creating the change |
Memorandum
of Entry No. 131 dated 14.08.2000 relating to Eloor Property. Memorandum
of Entry No. 131 dated 14.08.2000 relating to Edayar Property. Declaration
and Undertaking in the matter of Joint Mortgage by deposit of Title Deeds on
14.08.2000 of Edayar Property Declaration
and Undertaking in the matter of Joint Mortgage by deposit of Title Deeds on
14.08.2000 of Eloor Property |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
2)
Amount secured by the charge/amount owing on the securities of charge |
Rs.
1.000Millions (Bill Discounted) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
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 |
2nd Charge on all those pieces
and parcels of the land admeasuring 6 acres and 74 cents (7 acres 69 cents as
per documents) Situate at Eloor Village, Paravur Taluk, Ernakulam in the
state of Kerala bearing the following survey numbers and the extents
mentioned against them:-
(1
acers 71 cents as per documents) together
with all buildings and structures and all Plant & Machinery attached to
the earth or permanently fastened to anything attached to the earth. 2nd
Charge on all those pieces and parcels of Edayar Land admeasuring 70 cents Situate at Edayar
Village, Paravur Taluk, Ernakulam in the state of Kerala bearing the
following survey numbers and the extents mentioned there against:
together
with all buildings and structures and all Plant & Machinery attached to
the earth or permanently fastened to anything attached to the earth. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
Interest
rate at the rate of 4% above SBTPLR minimum 16% p.a. plus interest tax. Repayable
on Demand |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
5)
Name and Address and description of the person entitled to the charge. |
State
Bank Of Travancore, Industrial
Finance Branch, Malankara Center, M.
G. Road, Ernakulam – 35. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
6)
Date and brief description of instrument modifying the charge |
Memorandum
of Deposit of Title Deeds on
11.05.2001. Agreement
of Hypothecation of Goods and Assets dated 11.05.2001. Letter Regarding the grant of individual limits
within the overall Limit dated 11.05.2001 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
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. |
On
11.05.2001 the existing loan limit of Rs. 1.000 Millions was enhanced to Rs.
2.000 Million Collateral
Security of company’s immovable properties namely, 59 cents of land in sy.
No. 94/22 pt. And 23 pt. In Edayar Kara,Kadungallur Village, North parur
Taluk, Alwaye Sub _ District Ernakulam District together with all buildings
existing and /or to be construcred. The
movable Current Assets of the company’s viz. all present and future goods
book debts and all other movables assets of the borrower including documents
of title goods outstanding moneys, receivables including receivables by way
of cash assistance and /or cash incentives under the cash Incentive scheme or
any other scheme claims including claims by way of refund customs/exice
duties under the Duty Draw back Credit scheme, or any other scheme, bills,
invoice, documents, contracts, insurance, policies, guarantee, engagements, securities, investments, and
rights and the present machinery namely :- v
NaMBT Plant v
Sulphenamide Plant v
Thiazole Plant v
Antioxidant Plant v
Electrical
Installation v
Boiler with
accessories v
Pollution Control
devices v
Stroge Tanks v
Generator v
Inverter v
Lab Equipment v
Transformer v
Furniture &
Fittings v
Chilled Water Plant v
Edayar Plant all
future machinery belonging to or in the possession or under the control of
the borrower wherever lying stored and kept and whether in possession of the
borrower or of the bank or of any third party whether in India or elsewhere
throughout the world (including all such goods, other movable assets as may
be in course of shipment transit or delivery) were extended to the extended
Loan Limit. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AS
PER WEBSITE:
Merchem Limited is one of the leading manufacturers of Rubber Chemicals & Auxillaries in India , enjoying a vast customer base since 1981. They manufacture a wide range of Accelerators, Antioxidants, Rubber processing aids, Agrochemicals, Water treatment Chemicals and Specialty Chemicals.
About Us
Merchem Limited is one
of the leading manufacturer of rubber chemicals & auxillaries in India
enjoying a vast customer base since 1981.
They manufacture a
wide range of Accelerators, Antioxidants, Rubber Processing aids,
Agrochemicals, Water treatment Chemicals and Specialty Chemicals.
Their customer base
include all the premier tyre companies in India and other non- tyre clients in
India and abroad. They export large quantities of rubber chemicals to South
East Asia and European markets.
Merchem Limited
located in the industrial suburbs of Cochin employ state of the art facilities,
stringent quality control systems and unmatched technical expertise to gain
wide acceptance of their products in the domestic and international markets.
Their Research & Development activities are geared to meet customer
expectations for both quality products and new product development.
Quality & product consistency are attained by a comprehensive system
covering raw materials and processesing. Their systems have been consistently
rated par excellence by the major automobile tyre companies and other customers
in their vendor rating as well as their audits. Their Quality and Environmental
Management systems comply with the ISO 9001: 2000 and the ISO 14001 standards
Their products are
shipped in standard packing as per the industry norms. The products in pellets/
pastilles/powder form are available in HDPE laminated paper bags and liquid
products in barrels
Quality Management
Their Goals for
Quality is relatively simple: set high standards for products and service,
consistently meet those standards and work for continuous improvement in every
one of their systems and processes.
They maintain high
standards of quality and product consistency with a comprehensive monitoring
system covering raw material procurement, production processes and end product
handling.
Their manufacturing
operations are audited and certified for ISO 9001-2000 standards by Bureau
Verities Quality International.
Their systems are also
regularly audited by major automobile tyre companies and other quality
conscious customers and have always been accorded excellent ratings by them.
Their success has been
built on the simple premise of providing the highest quality rubber chemicals
and specialty chemicals backed up by technical expertise and sales support
PRODUCTS
v
Agrochemicals
& Water Treatment Chemicals
Environment Management
Environmental,
Safety & Health Policies
Merchem Limited has
always recognized its responsibility to its employees, customers, community and
the environment.
They have put in place
a well defined Environment Management System incorporating elements of the ISO
14000 standards , whereby process improvements and effluent discharge
parameters are continuously monitored and improved.
Their manufacturing
units are audited and certified for ISO 14001 standards by the Bureau Veritas
Quality International.
Production Management
Merchem Limited has
two units producing a range of rubber chemicals and auxiliary products in the
industrial suburbs of Cochin, Kerala, India.
Their State of the Art
Technology, stringent quality management systems and unmatched technical
expertise have enabled us to gain wide acceptability of their products in both
the domestic and international markets.
Their customers
include the major players in the tyre industry both in India and abroad and all
the major non- tyre rubber goods manufacturers.
They export large quantities of their products to European and Asian countries.
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 theyre 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.45.46 |
|
UK
Pound |
1 |
Rs.85.94 |
|
Euro |
1 |
Rs.58.32 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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
|
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 |