MIRA INFORM REPORT

 

 

Report Date :

19TH May, 2006

 

IDENTIFICATION DETAILS

 

Name :

CONNELL BROS. COMPANY INDIA PRIVATE LIMITED

 

 

Registered Office :

13, Padam – I, 4B Pedder  Road, Gamdevi, Mumbai – 400026, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2004

 

 

Date of Incorporation :

18th May, 1999

 

 

Com. Reg. No.:

11-119904

 

 

CIN No.:

[Company Identification No.]

U24110MH1999PTC119904

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMC07445E/MUMC10633A/MUMC11797C

 

 

PAN No.:

[Permanent Account No.]

AAACC9611L/AAACC9611L

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

To manufacture and or blending, importing, marketing and distributing of specialty/ industrial chemical products and minerals in India. To act as an agent for the sale of such products in India and all related activities to conduct such activities. The company will also engage in exporting of certain specialty/industrial chemical and mineral products produced in India

 

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

 

Maximum Credit Limit :

USD 200000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and resourceful industrialists. Their trade relations are fair. Payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

It can be regarded as a promising business partner in a medium to long-run.

 

LOCATIONS

 

Registered Office :

13, Padam – I, 4B Pedder  Road, Gamdevi, Mumbai – 400026, Maharashtra

Tel. No.:

91-22-56644483

E-Mail :

admin@abcind.com

Website :

http://www.connellbrothers.com, http://www.clocind.com

 

 

Corporate Office :

C/O. G & P Limited, Oriental House, 5th Floor, 7, J. Tata Road, Churchgate, Mumbai – 400020

Tel. No.:

91-22-22815060

Fax No.:

91-22-22818060

E-Mail :

admin@cbcind.com

 

 

Branches :

Located at:

 

Canada, China, HK, USA, Indonesia, Japan, Korea, Malaysia, Myanmar, Philippines, Singapore, Taiwan, Thailand and Vietnam

 

DIRECTORS

 

Name :

Mr. Herbert Tully

Designation :

Director

Address :

19, Woodside Way, Ross, CA – 94957, USA

Date of Birth/Age :

09.03.1943

Date of Appointment :

11.02.2000

 

 

Name :

Mr. Theodore Eliot (Foreign)

Designation :

Director

Address :

401, Golden Gate, Avenue Belvedere, California – 94920, USA

Date of Birth/Age :

17.10.1953

Date of Appointment :

18.05.1999

 

 

Name :

Mr. Dayan P. Dhanda

Designation :

Director

Address :

R-245, Greater Kailash – I, New Delhi – 110048

Date of Birth/Age :

19.11.1929

Date of Appointment :

18.05.1999

 

 

Name :

Mr. Parthiv T. Kilachand

Designation :

Chairman

 

 

Name :

Mr. Nandish Kilachand

Designation :

Director

 

 

Name :

Mr. Y S Mathur

Designation :

President

AGE.

54 Years

Qualification

B. Sc (Chem), MMS

Experiences

33 Years

 

KEY EXECUTIVES

 

Name :

D. J. Vyas and Associates

Designation :

Company Secretary

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Rasayani Traders Private Limited

42,000

Wilbur Ellis Company NA (USA)

42,000

TOTAL

84,000

 

BUSINESS DETAILS

 

Line of Business :

To manufacture and or blending, importing, marketing and distributing of specialty/ industrial chemical products and minerals in India. To act as an agent for the sale of such products in India and all related activities to conduct such activities. The company will also engage in exporting of certain specialty/industrial chemical and mineral products produced in India

 

 

Products :
  • Pigments – 32.04
  • Acylic Polymers – 39.06
  • Styrene Polymer – 39.03
  • Paper Chemicals – 38.24.90

 

PRODUCTION STATUS

 

Particulars

Unit

 

 

Actual Production

Celacryl – 95

Kgs.

 

 

--

Celacryl – 50

Kgs.

 

 

--

Cross Linked Polystyrene

Kgs.

 

 

18575

Process Chemicals

Kgs.

 

 

927174

 

GENERAL INFORMATION

 

No. of Employees :

80

 

 

Bankers :

ABN Amro Bank NV

 

 

Facilities :

Unsecured Loan

 

Short term loan from a Bank – Rs. 54.000 Millions

Repayable within a year Rs. 54.000 Millions against corporate guarantee from Ellis Company, USA

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

S. R. Batliboi and Associates

Chartered Accountants

Address :

6th Floor, Express Towers, Nariman Point, Mumbai – 400021

Tel. No.:

91-22-22876485/6

Fax. No.:

91-22-22876401

 

 

Associates/Subsidiaries :

Nil

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

300,000

Equity Shares

Rs. 100/- each

Rs. 30.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

84,000

Equity Shares

Rs. 100/- each

Rs. 8.400 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2004

31.12.2003

31.12.2002

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

8.400

8.400

8.400

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

44.588

12.518

5.217

4] (Accumulated Losses)

0.000

0.000

0.000
NETWORTH

52.988

20.918

13.617

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

54.090

51.000

16.000
TOTAL BORROWING

54.090

51.000

16.000

DEFERRED TAX LIABILITIES

0.679

0.426

0.233
 

 

 

 
TOTAL

107.757

72.344

29.850
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

11.996

10.532

5.587
Capital work-in-progress

0.000

0.000

0.000
 

 

 

 
INVESTMENT

0.000

0.000

0.000
DEFERREX TAX ASSETS

0.000

0.000

0.000
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
45.477
31.838

16.012
 
Sundry Debtors
87.747
73.693

17.623
 
Cash & Bank Balances
9.353
14.564

2.117
 
Other Current Assets
0.000
0.000

0.000
 
Loans & Advances
32.158
22.507

8.238
Total Current Assets
174.735
142.602

43.990
Less : CURRENT LIABILITIES & PROVISIONS
 
 

 
 
Current Liabilities &  Provisions
50.075
46.664

19.727
 
Provisions
28.899
34.126

0.000
Total Current Liabilities
78.974
80.790

19.727
Net Current Assets
95.761
61.812

24.263
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.000

0.000
 

 

 

 
TOTAL

107.757

72.344

29.850

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.12.2004

31.12.2003

31.12.2002
Sales Turnover [including other income]

317.143

250.455

94.323
 

 

 

 
Profit/(Loss) Before Tax

50.270

37.874

11.182
Provision for Taxation

18.243

13.633

4.117
Profit/(Loss) After Tax

32.027

24.241

7.065
 

 

 

 
Export Value

36.955

33.101

28.039
 

 

 

 
Import Value

115.994

79.759

34.545
 

 

 

 
Total Expenditure

266.372

212.581

83.140

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2004

31.12.2003

31.12.2002
PAT / Total Income
(%)
10.09

9.67

7.49
 
 
 

 

 
Net Profit Margin

(PBT/Sales)

(%)
15.85

15.12

11.85
 

 
 

 

 
Return on Total Assets

(PBT/Total Assets}

(%)
26.92

24.73

22.55
 

 
 

 

 
Return on Investment (ROI)

(PBT/Networth)

 
0.94

1.81

0.82
 

 
 

 

 
Debt Equity Ratio

(Total Liability/Networth)

 
2.51

6.30

2.62
 

 
 

 

 
Current Ratio

(Current Asset/Current Liability)

 
2.21

1.76

2.22

 

LOCAL AGENCY FURTHER INFORMATION

 

DIRECTOR’S REPORT:

 

During the year of operation ended 31.12.2004 the company had made a profit before tax of INR 50.27 Millions. In view to conserve resources for the company’s future growths plans, Director are not recommending dividend for this year.   

 

Stock and sale Business

 

Sales of trade goods during the year ended 31.12.2004 was INR 179.30 Millions consisting INR 159.45 Millions of domestic sale and INR 19.85 Millions of export sale compared to INR 136.43 Millions consisting of INR 114.36 Millions of domestic sale and INR 22.07 Millions of export sale during the previous year.

 

Agency

 

Total value of goods indented for direct delivery to customers during the year under review was INR 110.08 Millions compared to INR 97.62 Millions during the pervious year and commission earned during the year under review was INR 15.58 Millions compared to INR 11.91 Millions during the pervious year.

 

Connell Pigments and Dyes Division

 

CPDD exports during the year were US$ 0.44 Millions compared to US$ 0.47 Millions during the previous year.

 

Manufacturing Operations

 

Sales of Manufacture Goods during the year ended 31.12.2004 were INR 116.02 Millions compared to INR 98.00 Millions during the pervious year

 

 As regards to other projects, the company produced only cross linked polystyrene during the year as Acrylic Emulsions business was not proving economical nor promised substantial future products. Business during the current year was satisfactory in terms of volume growth but below expectation in terms of profitability. The steep increase in International prices of Styrene monomer severely affected the profitability as customers were unwilling to pay higher prices for the company’s products, preferring instead to use lower quality fillers in way formulations for precision investment casting moulds.

 

The company is actively pursuing the project to manufacturer Sizing Chemicals for Paper Industry  

 

Finance

 

The company continued to operate within the overall limit of INR 70.50 Millions and had obtained maximum loan of INR 66.000 Millions during the year and INR 60.000 Millions thereafter as compared to maximum loan of 51.000 Millions during the previous year and INR 51.000 Millions thereafter.

 

FIXED ASSETS:

 

The company’s fixed assets of important value includes plant and machinery, laboratory equipments, furniture and fixtures, computers and vehicles.

 

 

 WEBSITE DETAILS ATTACHED:

 

OFFICES:

 

Connell Bros. is headquartered in San Francisco and has more than 25 company-owned offices in 14 countries throughout the Pacific Rim, each serving as a distribution point for an extensive product line. All offices are staffed with technically trained, local sales teams who add value through comprehensive product knowledge and strong relationships with their customers and suppliers

 

 

Choose an office:

PRODUCTS:


Adhesive and Sealants


Agriculture


Construction


Detergents


Electronic and Semiconductor


Food Processing


Fuel and Lubricants


Glass and Ceramics

 

 


Ink and Graphic Arts


Personal Care


Pharmaceutical


Plastic and Compounding


Paint and Coatings


Paper


Rubber Processing


Textile and Leather


Water Treatment

 

 

About Us:

 

Connell Bros. Company, Ltd., a division of Wilbur-Ellis Company, is one of the largest international marketers and distributors of specialty industrial chemicals and minerals in the Pacific Rim, with over a century of proven success. Connell Bros. also supplies agriproducts, engineering products, and food and consumer products to selected markets.

They maintain offices throughout Asia and provide a wide range of services to both suppliers and customers:

They also help manufacturers in Asia and other countries identify U.S. markets for a broad variety of products and raw materials.

 

What Sets Us Apart

Mumbai, India

Connell Bros. Co. (India) Pvt. Ltd. was founded in 1999 as a 50:50 joint venture with the Kilachand family of Mumbai and services the specialty chemical requirements of a broad range of industries.CBC India also acts as a sourcing and quality control office for supply of pigments & dyes to many CBC offices. Connell Pigment & Dyes Division has its own quality control and applications development laboratory.

At CBC India, they aim to blend the global resources and distribution expertise of Connell Bros. with their partners' deep understanding of the Indian business climate. Their focus is on providing direct and ex-stock service to local customers, with an emphasis on integrity and partnership.

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. 45.68

UK Pound

1

Rs. 85.33

Euro

1

Rs. 58.12

 

 

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

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

54

 

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

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions