%20LIMITED%2015-Nov-2006_files/image002.jpg)
MIRA INFORM REPORT
|
Report
Date : |
15.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
CIBA
SPECIALITY CHEMICALS (INDIA) LIMITED |
|
|
|
|
Registered
Office : |
Off Aarey Road, Goregaon (East), Mumbai - 400 063,
Maharashtra |
|
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|
|
Country
: |
India |
|
|
|
|
Financials
(as on) : |
31.03.2006 |
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|
|
|
Date
of Incorporation : |
30.03.1995 |
|
|
|
|
Com.
Reg. No.: |
11-86986 |
|
|
|
|
CIN
No.: [Company Identification No.] |
L24120MH1995PLC086986 |
|
|
|
|
TAN
No.: [Tax Deduction & Collection Account No.] |
MUMC06272A |
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|
|
|
Legal
Form : |
It is a public limited liability company. The company's shares are listed on the
Stock Exchanges. Subject
is a subsidiary of Ciba Specialty Chemicals, Basel, Switzerland. |
|
|
|
|
Line
of Business : |
Manufacturer of Specialty Chemicals, Textile Auxilliaries,
Leather Chemicals and Auxilliaries, Fluorescent Brightening Agents, Synthetic
Resins, Epoxy Phenol Novolac (EPN) Resins, Specialty Hardeners, Polyurethane
Resins, Saturated Polyester and Organic Phosphates and Phosphates which is
Applied in Plastic Industry, Automotive Industry, Inks, Paints and Coatings
Industry, Home and Personal Care Industry, Paper and Packaging, Fibers
Industry, Carpets and Textiles Industry, Mining and Oil Industry, etc. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
8000000 |
|
|
|
|
Status
: |
Good |
|
|
|
|
Payment
Behaviour : |
Regular |
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|
|
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Litigation
: |
Clear |
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|
|
Comments
: |
Subject is a
well-established company having fine track.
Available information indicates high financial responsibility of the
company. Financial position of the
company is good. Business is
active. Payments are correct and as
per commitments. The company can be
considered good for any normal business dealings. The company can be regarded as a promising business
partner in a long-run. |
LOCATIONS
|
Registered
Office : |
Off Aarey Road, Goregaon (East), Mumbai - 400 063, Maharashtra,
India. |
|
Tel.
No.: |
91 – 22 –
2840 3221 – 3 / 2840 2728 / 2261 6858 |
|
Fax
No.: |
91 – 22 –
2842 3470/ 1532 / 2840 3306 / 2849 1892 |
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E-Mail
: |
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|
Website
: |
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|
|
|
Head
Office : |
Santa Monica, Corlim, Goa, India |
|
|
|
|
Other
Offices : |
3 International Business Park, #05-1 Nordic European Center,
Singapore 609981
Building No. 40, 1st Floor, Off Aarey Road, Goregaon (East) ,
Mumbai 400 063, India Tel.: 91-22-28403221
Off Aarey Road, Building No. 12, Ground Floor, Mumbai 400
063, Maharashtra, India Tel.: 91-22-28403221
Bldg No. 3 Ground Floor, Off. Aarey Road, Goregaon (East),
Mumbai 400 063, India Tel.: 91-22-2840 3221
Off Aarey Road, Building No. 12, Ground Floor, Goregaon East,
Mumbai 400 063, India Tel.: 91-22-28407129
Klybeckstrasse 141, P.O. Box, Basel 4002, Switzerland
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DIRECTORS
|
Name : |
Mr. H. Dhanrajgir |
|
Designation
: |
Chairman |
|
|
|
|
Name : |
Mr. J. S. Billimoria |
|
Designation
: |
Vice Chairman and Managing Director |
|
Date
of Birth/Age : |
59 years |
|
Qualification
: |
B. Com., F.C.A (England and Wales) |
|
Experience
: |
37 years |
|
Date
of Appointment : |
01/09/1997 |
|
Last
Employment held : |
Hindustan Ciba –Geigy Limited (Vice President-Finance) |
|
|
|
|
Name : |
Mr. M. Garrett |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. A. Kappeler |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. J S Maheshwari |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. D. C. Shroff |
|
Designation
: |
Director |
KEY EXECUTIVES
|
Name : |
Mr. M D Dewal |
|
Designation
: |
Company Secretary |
|
|
|
|
Name : |
Mr. C. K. Bhattacharjee |
|
Designation
: |
Business Segement Head |
|
Date
of Birth/Age : |
57 years |
|
Qualification
: |
B. Sc. (Hons.), B. Tech. |
|
Experience
: |
31 years |
|
Date
of Appointment : |
01/10/1999 |
|
Last
Employment held : |
Pigment Specialities India Limited (Managing Director) |
|
|
|
|
Name : |
Mr. B L Bajaj |
|
Designation
: |
Head – New Business Development |
|
Date
of Birth/Age : |
39 years |
|
Qualification
: |
B. Com., F.C.S., F.C.A. |
|
Experience
: |
16 years |
|
Date
of Appointment : |
22/08/2003 |
|
Last
Employment held : |
KPL International Limited (Managing Director) |
|
|
|
|
Name : |
Mr. M. Kotnis |
|
Designation
: |
Head – Business Development and Purchasing |
|
Date
of Birth/Age : |
40 years |
|
Qualification
: |
B. Chem., M. S. Ph.D (Polymers Science and Engineering) |
|
Experience
: |
13 years |
|
Date
of Appointment : |
21/06/2004 |
|
Last
Employment held : |
Huntsman Corporation, USA (Global Marketing Manager) |
|
|
|
|
Name : |
Mr. K.
Cirod |
|
Designation
: |
Sales –
Head Textile Effects Region South Asia |
|
Date
of Birth/Age : |
58 Years |
|
Qualification
: |
Master of Textiles Chem. Dyeing & Fhn. Dip. –
Textile Laboratory |
|
Experience
: |
33 Years |
|
Date
of Appointment : |
1.09.1997 |
|
Last
Employment held : |
Ciba Specialty Chemicals,
Switzerland, Sales - Head, India (Textile Dyes) |
|
|
|
|
Name : |
Mr. C.
Martinez |
|
Designation
: |
Vice President (Finance) |
|
Date
of Birth/Age : |
29 Years |
|
Qualification
: |
MBA
(Italy), B. Mech. Engineer (Mexico) |
|
Experience
: |
7 Years |
|
Date
of Appointment : |
01.04.2005 |
|
Last
Employment held : |
Ciba Specialty Chemicals,
Switzerland, Assistant to CFO |
|
|
|
|
Name : |
Hansjakob
Faeh |
|
Designation
: |
General Works Manager - Goa Plant
|
|
Date
of Birth/Age : |
64 Years |
|
Qualification
: |
Ph.D. |
|
Experience
: |
29 Years |
|
Date
of Appointment : |
01.05.1999 |
|
Last
Employment held : |
Cibasc China Limited, Head of
Corporate EHS |
|
|
|
|
Name : |
Bernd Stefan Plankenhorn |
|
Designation
: |
Regional Head - Business Planning
|
|
Date
of Birth/Age : |
37 Years |
|
Qualification
: |
Master in Engg./Text. Chem./Text Wet Proc. |
|
Experience
: |
20 Years |
|
Date
of Appointment : |
11.08.2005 |
|
Last
Employment held : |
Lauffenmuhle Textile Gmbh, Werk
Wiese, Factory Manager |
MANAGEMENT
|
Corporate Management |
|
|
|
Mr. J. S.
Bilimoria |
|
Mr. C. K.
Bhattacharjee |
|
Mr. M. D.
Dewal |
|
Mr. M.
Ghosh |
|
Mr. M.
Kotnis |
|
Mr. G.
Martinez |
|
Mr. C.
Newton |
|
Mr. E.
Norohna |
|
Mr. R.
Vaidya |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
|
|
|
|
|
|
Ciba
Specialty Chemicals Holding Inc., Basel, Switzerland |
7739987 |
58.28 |
|
|
Ciba
India Private Limited |
1460900 |
11.00 |
|
|
Flls/Foreign
Mutual Funds |
239751 |
1.81 |
|
|
Foreign Banks with resident individuals |
1675 |
0.01 |
|
|
NRIs |
38146 |
0.29 |
|
|
Domestic
Companies – Others |
428693 |
3.22 |
|
|
Financial
institutions & insurance companies |
327552 |
2.47 |
|
|
Nationalised
and non-nationalised banks |
285 |
0.00 |
|
|
Mutual
funds and DTI |
1210891 |
9.12 |
|
|
Directors
and their relatives |
93 |
0.00 |
|
|
Resident
individuals |
1811180 |
13.64 |
|
|
Clearing
Member in Transit |
21666 |
0.16 |
|
|
Total |
13280819 |
100.00 |
|
BUSINESS DETAILS
|
Line
of Business : |
Manufacturer of Specialty Chemicals, Textile Auxilliaries,
Leather Chemicals and Auxilliaries, Fluorescent Brightening Agents, Synthetic
Resins, Epoxy Phenol Novolac (EPN) Resins, Specialty Hardeners, Polyurethane
Resins, Saturated Polyester and Organic Phosphates and Phosphates which is
Applied in Plastic Industry, Automotive Industry, Inks, Paints and Coatings
Industry, Home and Personal Care Industry, Paper and Packaging, Fibers
Industry, Carpets and Textiles Industry, Mining and Oil Industry, etc. |
|
|
|
|
Products
with ITC Code : |
320420.00 – Optical Brighters 381200.00 – Antioxidants 320416.00 – Reactive Dyes |
|
|
|
PRODUCTION STATUS
|
Item |
Unit |
Production |
|
Base
Polymers, Polymer additives and process and Lubricant additives |
Tonnes |
2859.26 |
|
Water
Treatment and Paper Treatment Chemicals |
Tonnes |
-- |
|
Coating
Chemicals for Plastics, Masterbatch, Electronic Material, Imaging and Inks |
Tonnes |
2478.82 |
|
Colours
for Textiles and Textile Chemicals |
Tonnes |
3794.57 |
|
Item |
Unit |
Installed Capacity |
|
Textile
Chemicals and Auxiliaries |
Tonnes |
4000 |
|
Organic
Phosphates and Phosphites |
Tonnes |
1000 |
|
Phenolic
Antioxidants |
Tonnes |
2000 |
|
Optical
Brightners |
Tonnes |
450 |
GENERAL INFORMATION
|
Suppliers
: |
Some of the major suppliers of the company are- ·
Alpine Chemicals ·
Canton Laboratories ·
Chemco Dyestuffs Private Limited ·
Jackson Chemicals Industries ·
Jainik Industries ·
Kundar Chemicals Private Limited ·
Lotus Enterprise ·
National Dyechem Industries ·
Omkrown Industries Private Limited ·
Orchem Industries Private Limited ·
Orchem Intermediates Private Limited ·
Shree Chemopharma ·
Shree Sidhdhanath Industries ·
Solar Dyes Industries ·
Solar Dyestuff Private Limited ·
Spectra Dyes and Chemicals ·
Supreet Chemicals Private Limited ·
Suraj Chemtech Limited ·
Surya Chemicals ·
Swambe Chemicals ·
Uma Chem Industries ·
Vapi Pigments Chemicals and Allied Products |
||||||||
|
|
|
||||||||
|
No. of
Employees : |
377 |
||||||||
|
|
|
||||||||
|
Bankers
: |
Ř
Standard
Chartered Grindlays Bank Limited O.R.D.S.A., 90, Mahatma Gandhi Road, Mumbai – 400001,
Maharashtra, India Ř
BNP,
Paribas French Bank Building, 62, Homji Street, P. O. Box 45,
Mumbai – 400001, Maharashtra, India Ř
Citibank
N. A. 239, Dr. D. N. Road, Mumbai - 400001, Maharashtra, India Ř
Deutsche
Bank, Mumbai, Maharashtra, India Ř
State
Bank of India, Mumbai, Maharashtra, India Ř
Hongkong
& Shanghai Banking Corporation Limited, Mumbai, Maharashtra, India |
||||||||
|
|
|
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|
Facility
: |
|
||||||||
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors
: |
S. R.
Batliboi and Company Chartered Accountants |
|
|
|
|
Subsidiaries
: |
v
Diamond
Dye-Chem Limited o
A
wholly owned subsidiary of the company. v
Ciba Specialty Chemicals Inc., Switzerland v
Ciba Specialites Chimiques SA, France v
Ciba Spezialitatenchemie Pfersee GmbH, Germany v
Ciba Spezialitatenchemie Grenzach GmbH, Germany v
Ciba Especialidades Quimicas Colon S.A., Taiwan v
Ciba Especialidades Quimicas Colon S.A., Korea v
Ciba Especialidades Quimicas Colon S.A., Japan v
Ciba Especialidades Quimicas Colon S.A., Panama v
Ciba Especialidades Quimicas , Argentina v
Ciba Specialty Chemicals (Maastricht) B.V.,
Netherlands v
Ciba Specialty Chemicals PLC, UK v
Ciba Specialty Chemicals Limited, UK v
Ciba Specialty Chemicals Limited, Thailand v
Ciba Specialty Chemicals Limited, Shanghai v
Ciba Especialidades Quimicas Limited, Brazil v
Ciba Specialty Chemicals Corporation, USA v
Ciba Specialty Chemicals OY, Raisio, Finland v
Ciba Specialty Chemicals (Shanghai) Limited, China v
Ciba Specialty Chemicals, Korea v
Ciba Specialty Chemicals K K, Japan v
Ciba Specialty Chemicals Middle East W.L.L., Manama v
Ciba Specialty Chemicals Pty. Limited, Australia v
Ciba Specialty Chemicals (Hong kong) Limited, Hong
kong v
Qingdao Ciba Dyes Co. Limited, China v
Shanghai Ciba Gao-Qiao Chemical Company Limited,
China v
Ciba Specialty Chemicals (Taiwan) Limited, Taiwan v
Daihan Swiss Chemical Corporation, South Korea v
Ciba Specialty Chemicals N.Z. Limited, New Zealand v
Ciba Specialty Chemicals (Singapore) Pte. Limited,
Singapore v
Ciba Especialidades Quimicas, S.A, Colombia v
Ciba Especialidades Quimicas Mexico S.A. de C.V.,
Mexico v
National Pigment Masterbatch Company Limited, S.
Arabia v
PT Ciba Specialty Chemicals Indonesia, Indonesia v
Ciba Specialty Chemicals Industries Limited,
Thailand v
Chemipro Kasei Kaisha Limited, Japan v
Ciba India Private Limited, India v
Ciba Specialty Chemicals (Chonan) Limited, Korea v
Polyad Services Germany v
IBM Switzerland, Switzerland v Ciba
Especialidades Quimicas, Guatemala |
|
|
|
|
Associates: |
Swathi Organics & Specialities Private Limited, India |
|
|
|
|
Holding Company : |
Ciba
Specialty Chemicals Holding Inc., Switzerland |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
13,500,000 |
Equity
Shares |
Rs. 10/- |
Rs. 135.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
13,280,819 |
Equity
Shares |
Rs. 10/- |
Rs. 132.808 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
132.808 |
132.800 |
132.800 |
|
|
2]
Reserves & Surplus |
1952.683 |
1725.100 |
1537.100 |
|
NETWORTH
|
2085.491 |
1857.900 |
1669.900 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
30.432 |
30.800 |
312.400 |
|
|
2]
Unsecured Loans |
0.000 |
184.500 |
526.900 |
|
TOTAL
BORROWING
|
30.432 |
215.300 |
839.300 |
|
|
|
|
|
|
|
TOTAL
|
2115.923 |
2073.200 |
2509.200 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
283.892 |
309.100 |
347.900 |
|
Capital work-in-progress
|
68.782 |
19.400 |
11.100 |
|
|
|
|
|
|
|
INVESTMENT
|
639.246 |
621.200 |
1004.200 |
|
Deferred Tax Assets
|
88.230 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
1003.838
|
772.300
|
793.500 |
|
|
Sundry Debtors
|
1264.084
|
1187.900
|
934.400 |
|
|
Cash & Bank Balances
|
34.920
|
57.500
|
33.400 |
|
|
Loans & Advances
|
283.694
|
236.500
|
233.700 |
Total Current Assets
|
2586.536 |
2254.200 |
1995.000 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1391.330
|
1003.400
|
757.300 |
|
|
Provisions
|
159.433
|
127.300
|
91.700 |
Total Current Liabilities
|
1550.763 |
1130.700 |
849.000 |
|
Net
Current Assets
|
1035.773 |
1123.500 |
1146.000 |
|
|
|
|
|
|
|
TOTAL
|
2115.923 |
2073.200 |
2509.200 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
6344.257 |
5821.900 |
4683.000 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
507.156 |
394.200 |
207.200 |
Provision for Taxation
|
173.529 |
123.000 |
59.400 |
Profit/(Loss) After Tax
|
333.627 |
271.200 |
147.800 |
|
|
|
|
|
Export Value
|
923.090 |
944.039 |
764.252 |
|
|
|
|
|
Import Value
|
2843.706 |
2354.964 |
NA |
|
|
|
|
|
Total Expenditure
|
5837.101 |
5294.423 |
4472.531 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
|
Sales
Turnover |
|
1855.000 |
1122.000 |
|
Other
Income |
|
680.000 |
33.000 |
|
Total Income |
|
2535.000 |
1155.000 |
|
Total
Expenditure |
|
1746.000 |
1096.000 |
|
Operating
Profit |
|
789.000 |
59.000 |
|
Interest |
|
02.000 |
04.000 |
|
Gross
Profit |
|
787.000 |
55.000 |
|
Depreciation |
|
19.000 |
18.000 |
|
Tax |
|
37.000 |
10.000 |
|
Reported
PAT |
|
717.000 |
10.000 |
200606 Quarter 1 –
EPs
is Basic and Diluted. 1. Previous periods figures have been regrouped, wherever
necessary to conform to current periods classification. 2. Status of Investor
Complaints for the quarter ended June 30, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 07
Complaints disposed off during the quarter 07 Complaints unresolved at the end
of the quarter Nil 3. The above unaudited financial results were reviewed by
the Audit Committee and thereafter approved by the Board of Directors at their
meeting held on 31st July, 2006. 4. The said results have been subject to a
limited review by the companys statutory auditors. 5. The Company has divested
its Textile effects Business as at the close of Business hours on 30.06.2006.
The profit on sale of this business amounting to Rs. 645 Million is shown as
exceptional item and is subjected to Final Determination of net assets taken
over. This Business Formed part of this 'Speciality Effects Chemicals segment'
Accordingly figures for the previous period for capital employed are to that
extend not comparable. 6. During this quarter, the Company has subscribed to
and has been allotted 8326531 equity shares at the par value Rs.10/- each of
Virchow Drugs private Limited aggregating Rs.83 million and consequently holds
51% of the share capital of the company.
200609 Quarter 2 –
EPS
is Basic and Diluted. 1. The Company has divested its Textile Effects Business
as at the close of Business Hours on 30.06.2006. The profit on Sale of Business
amounting to Rs. 640 Million is shown as exceptional item and is subject to
Final Determination of net assets taken over. Consequent to the sale of Business,
the results for the quarter and half year ended 30.09.2006 are not strictly
comparable with the respective periods of the previous accounting year. 2.The
company has re-orgnised its continuing operations and therefore revised the
reporting requirements under Accounting Standard 17 (Segment Reporting).
Accordingly the sgment are classified as 'Specialty Chemicals Segment' and
'Other Segments'. 'Other Segments' represents manufacturing under contract and
sourcing of products for exports. 3.The planned increase of stock-in-trade
under item 4a) is on account of increased demand for the company’s products.
4.Effect of Accounting Standard 15 (Revised) 'Employee Benefits' for the
current period has been considered in the above and additional liability, if any
as at the beginning of the year will be accounted in the Reserves and Surplus
at the end of the financial year. 5.During the first quarter, the company had
subscribed to and been alloted 8326531 equity shares at the par value of
Rs.10/- each of Virchow Drugs Private Limited, aggregating to Rs.83 million and
consequently holds 51% of the share capital of that company. 6.Previous periods
figures have been regrouped wherever necessary to confirm to current periods
classification. 7.There were no investor complaints pending at the beginning of
the current quarter. Five complaints were received during the quarter, out of
which four complaints were disposed off and one complaint was pending at the
end of the quarter. 8.The above unaudited financial results were reviwed by the
Audit Committee and thereafter approved by the Board of Directors at their
respective meetings held on 23.10.2006. 9.The said results have been subjected
to a limited review by the Company’s Statutory Auditors.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.06 |
0.30 |
0.51 |
|
Long Term Debt Equity Ratio |
0.00 |
0.08 |
0.05 |
|
Current Ratio |
1.68 |
1.54 |
1.31 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Asset |
5.16 |
4.73 |
3.95 |
|
Inventory |
7.25 |
7.38 |
5.47 |
|
Debtors |
5.25 |
5.44 |
4.55 |
|
Interest Cover Ratio |
30.48 |
10.41 |
4.37 |
|
Operating Profit Margin (%) |
9.56 |
9.29 |
8.29 |
|
Profit Before Interest and Tax Margin (%) |
8.15 |
7.55 |
5.76 |
|
Cash Profit Margin (%) |
6.59 |
6.43 |
5.70 |
|
Adjusted Net Profit Margin (%) |
5.18 |
4.69 |
3.17 |
|
Return on Capital Employed (%) |
25.03 |
19.03 |
10.96 |
|
Return on Net Worth (%) |
16.92 |
15.38 |
9.09 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.320.00/- |
|
Low |
Rs.316.05/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on 30th
March, 1995 at Mumbai in Maharashtra having Company Registration Number 89686.
The company was formed
when the chemicals division of Hindustan-Ciba-Geigy was hived off. It has
presence in additives, performance polymers, consumer care and pigments. The
company has anti-oxidant and optical brightener plants at Goa. Its other
products are sourced from its parent and group companies. In optical
brighteners, its brand Tinopal is quite popular. It also markets the Araldite
range of adhesives.
The roots of subject date
back to 1758 when J. R. Geigy AG, the oldest chemical company in Basel, began
trading in chemicals and dyes. In 1971,
the Geigy merged with Ciba - a Basel based chemicals company founded in 1884 to
form Ciba-Geigy Limited.
Ciba-Geigy Limited
generally known as Ciba - was a leading worldwide biological and chemicals
group dedicated to satisfying needs in three diverse areas: healthcare,
agriculture and industry. In March,
1996 Ciba and the pharmaceutical company Sandoz announced plans to merge and
form one of the world's largest sciences groups - Novartis. It was also
announced that Ciba's speciality chemicals division would be spun-off within a
12 months time frame. Ciba Specialty Chemicals became operationally independent
from Novartis on January 1, 1997.
Ciba Speciality Chemicals
(India) (CSCI) was formed when the chemicals division of Hindustan Ciba-Geigy
was hived off. It has presence in additives, performance polymers, consumer
care and pigments. CSCI has anti-oxidant and optical brightener plants at Goa.
Its other products are sourced from its parent and group companies. In optical
brighteners, its brand Tinopal is quite popular. It also markets the Araldite
range of adhesives.
The company's additive range primarily caters to plastics, lubricants,
photofilms and automotive paints industries. The polymers consists of epoxy
resin based adhesives under brand Araldite finds application in wide range of
user industries including paints and construction. The consumer care business -
optical brightening agents, finishing agents and other chemicals cater to
textiles, leather, paper, detergents and cosmetics.
CSCI has a number of joint ventures, It has also transferred its domestic
pigments and textile dyes business to a 50:50 joint venture with Indian
Dyestuff Industries in 1998. The research activity conducted by CSCI was also
transferred to its 100% subsidiary Ciba India Private Limited (CIPL). Later,
CIPL entered into a joint venture with Tamilnadu Petroproducts for manufacture
of Araldite range of adhesives with a capacity of 30,000 tonnes per annum.
New Phenolic Antioxidants Plant at Santa Monica, Goa for manufacture of two
primary antioxidants, namely Irganox 1010 and Irganox 1076, was commissioned in
February 2000. This new plant has the capacity of 200 tonnes per annum.
Ciba Specialty Chemicals India (CSCIL ) has sold its performance polymer
business to Vantico Performance Polymers for a consideration of Rs 400
Millions. The company has also sold its 76 per cent stake in its basic liquid
resins joint venture company Petro Araldite Private Limited (PAPL) to Vantico
International SA of Switzerland.
CSCI has installed the Optical Brightners with a capacity of 350 Tonnes in
2002.Later in the year 2003,this capacity has been expanded by 100 tonnes
taking the total capacity into 450 tonnes.
During 2003,the company has also expanded the installed capacity of Textile
Chemicals by 2054 tonnes and therefore enhanced the total capacity to 4000
tonnes.
Profile
Ciba Specialty Chemicals
creates effects to improve the quality of life.
Their specialty chemicals, added in
small quantities, improve existing or add new qualities to materials at
every stage of their production processes.
As well as
products, they offer a wide range of knowledge-based services and expertise,
providing customers with complete solutions to enhance their businesses.
They serve several major markets
including the Automotive, Textile, Packaging,
Home & Personal Care, Paper and Printing, Construction,
Electronics, Water Treatment and Agriculture industries.
Ciba Specialty Chemicals
(SWX: CIBN, NYSE: CSB) is headquartered in Basel, Switzerland.
They employ around 19,300 people
at 79 sites in 28 countries and 24 research centers in
12 countries.
In 2004, the Company generated
sales of 7 billion Swiss francs and invested 288 million
in R&D.
Their sales are evenly balanced
between their three major market areas: Europe, the Americas and the Asia‑Pacific
region.
They are organized in four
market-focused segments: Plastic Additives, Coating Effects,
Water & Paper Treatment and Textile Effects.
The company became independent in
January 1997, having been formed from the specialty chemical operations of
the former Ciba-Geigy Limited when that company merged with
Sandoz Limited to form Novartis AG
MANAGEMENT
DISCUSSION & ANALYSIS:
Industry Structure
The Company is engaged in the business of manufacturing and
trading of Specialty Chemicals consisting of Effects Chemicals and Industrial
Chemicals. Effects Chemicals are used as direct inputs in the manufacture of
products to improve qualities such as color, look, feel, performance and
strength which ultimately enhance the quality of their customers' products by
creating high value effects. Effects Chemicals include business line for
Textile Dyes and Chemicals and Coatings. Industrial Chemicals improve
efficiency at every stage of the manufacturing process as well as the
appearance and the performance of the end product. The Company serves several
major industries and markets such as automobiles, agriculture, construction,
electronics, home and personal care, inks and printing, paper, plastics,
paints, packaging, petrochemicals, textiles, mining, extraction, water
treatment, etc.
Markets
for Specialty Chemicals products are highly unpredictable and varied, making
demand forecasting a difficult task. Added to this, there is greater
competition in the market place with local and overseas producers and frequent
changes in customers' preferences for products. To be successful in this
challenging environment, business segments have to align closely with customer
industries and the markets they serve by offering integrated and complete solutions, a wide rage of
knowledge-based services and expertise, and follow a tailored approach to
individual customer needs. A centralized purchase and sourcing organization
which was established last year has started showing positive results. In
addition, the Company's Parent Company has initiated a project to harmonize
business processes through an integrated system software which will improve
overall operational efficiency. This project is expected to be implemented in
the Company by the year 2008.
Operating Results
Overall sales turnover has
gone up by 11% to Rs. 6,240 million from Rs. 5,606 million of the previous
year. Domestic turnover has increased by 14% to Rs. 5,330 million from Rs.
4,663 million though exports have declined by 3% to Rs. 910 million from Rs.
943 million. Profit after tax stood at Rs. 334 million as against Rs. 271
million of the previous year. In the prevailing business environment the
Company has performed well.
Business Segment Performance:
Specialty Effects Chemicals:
Sales of Textile Dyes and
Chemicals have increased by 28% to Rs. 2,353 million from Rs. 1,845 million of
the previous year. Domestic sales have gone up by 28% to Rs. 2,219 million from
Rs. 1,727 million of the previous year. Exports have increased by 14% to Rs.
134 million from Rs. 118 million of the previous year. New Dyes range and some
new, interesting concepts were introduced last year which resulted in market
share gains. An illustrative brochure for jigger dying application placed the
Cibacron C/FN range again in the forefront, new disperse dyes for
Polyester/Elestan Dyes for fabric blend offered more dependable results to
processors, and an innovative process for Jet application led to productivity
enhancements. In the field of Textile Chemicals novelties were launched during
the last year such as a complete range of well balanced products for the
Garment Wet Processors, Special Knittex resins for children, New Fluor
Chemicals were added to the existing Teflon range, setting new standards in the
Oil and Water repellent effect creation. Sales of Coating Effects Chemicals
have marginally decreased by 1% to Rs. 1,109 million from Rs. 1,123 million of
the previous year. Domestic sales have gone up by 7% to Rs. 1,022 million from
Rs. 959 million of the previous year, a commendable performance considering the
rapid down turn in CDR Dye business. Exports were down by 47% to Rs. 87 million
from Rs. 164 million of the previous year due to continued weak demand. However
exports to Bangladesh are showing signs of good business prospects.
Other served markets, namely
Plastics, Coatings, Imaging and Inks have shown good growth during the year.
The growth in the end user markets like Automotive, Industrial and
Architectural, Newsprint and Packaging, coupled with increasing demand for
better quality products saw increased sales of their high performance pigments
and specialty additives. They expect this growth to be sustainable in view of
the positive outlook of the end user industry.
Specialty Industrial Chemicals:
After an exceptionaly good
previous year, sales of Additives were down by 9% to Rs. 1,746 million this
year. Domestic turnover was down by 5% to Rs. 1,403 million and exports by 20%
to Rs. 343 million.
Business of Base Polymers
declined due to maintenance shut down at some of their major customer sites and
strategic decisions on price increases. Some Polymer producers in India have
planned capacity addition; this should trigger growth in demand in 2008.
Business of Polymer products
were marginally lower on account of major price erosion in key downstream
customer segments due to Asian competition, however business was strengthened
with the introduction of Effect additives in new applications. Application
trials of some value added products have been initiated and these will be
introduced in the near future. Growth in sales of lubricant additives was due
to increased business with local accounts despite loss of business from a major
global account. Sales of the Home and Personal Care business line has gone up
due to growing demand for specialty products in the market and further growth
is expected in the future. The overall sales of Water & Paper Treatment chemicals
and those used in the Detergents and Hygiene Industry have gone up by 42% to
Rs. 1,032 million from 729 million of the previous year. Domestic sales
increased by 38% to Rs. 686 million from Rs. 497 million of the previous year.
Exports have gone up by 49% to Rs. 346 million from Rs. 232 million of the
previous year.
The Paper chemicals business
has been growing and enhancing its position in the Paper industry. Raisio
Chemicals, Finland, which was globally acquired by Ciba, Switzerland, is now
fully integrated into Ciba. Products from Raisio have been successfully
launched in the domestic market. The growth is mainly from the latex, coating
additives and sizing chemicals. The Paper industry in India is on the rise with
most plants expanding current capacities, modernizing, and adding new machines.
There is a thrust on upgrading the paper quality produced which is largely due
to increasing competition from imported paper. In the area of Water Treatment
chemicals, micronutrients continue to be a significant part of their business.
This business has found success in the sugar industry. The uptrend in the sugar
season has supported higher sales. This business has made a breakthrough in the
extraction industry and is also making inroads in Industrial Water Management.
After couple of years of stagnant sale, the Detergent Industry is witnessing
good growth resulting in an increase in demand for high quality whiteners. The
Hygiene Effect business was affected due to local competition offering products
at low prices to customers.
Financial Performance with respect to Operational Performance and Cash Flow
Analysis:
Net
sales increased by 11% to Rs. 6,240 million compared to Rs. 5,606 million of
the previous year. Operating Profit before tax has gone up by 29% to Rs. 507
million compared to Rs. 394 million of the previous year mainly due to higher
sales, lower material costs, interest costs and depreciation charges. The net
cash provided by operating activities however was lower at Rs. 356 million
compared to Rs. 391 million of the previous year primarily on account of higher
inventories and debtors, to cater to the growing market. An amount of Rs. 94
million was invested in new manufacturing facilities. Net cash of Rs. 285
million was used in financing activities mainly towards repayment of unsecured
borrowings.
Outlook:
The Company's business prospects are closely linked to the
development of its industrial customers. Business prospects also largely depend
upon local and global economic and business environment, economic policies of
the Government, market conditions and competition, customers' preferences,
volatility of exchange rates, costs of inputs, tariff structure, etc. In
addition, in line with the global restructuring of Ciba, the Company will divest
its Textile Effects Business in June/July, 2006. The sale proceeds will be
utilized to develop and grow their other core businesses. By the end of June
this year, the Company will be investing Rs. 83 million (approx.) in a joint
venture to manufacture Triclosan. All these factors make prediction of
business prospects difficult. Nevertheless, assuming that the good performance
of the Indian economy continues, supported by stable policies of the Government
and growth in the manufacturing sector, the Company remains positive about the
outlook for the current year. Innovation and continuous operational
improvements have been recognized as keys for success and remaining competitive
in the challenging business environment.
Risks and Concerns:
No business is risk free.
Proactive recognition of risks, their assessment, their impact on the business
and initiation of actions to mitigate such risks become critical. Factors like
subdued demand, political uncertainty, vagaries of monsoon and other natural
calamities, economic and business conditions prevailing locally and globally
may affect the Company and industry at large. With increasing competitive
pressure and frequent changes in customer preferences, the challenge is to
produce the right product at the right time and at a competitive price.
Entering into new product areas and businesses would carry associated business
risk. Forex fluctuation, increasing raw material prices and higher crude oil
prices are causes of concern. The Company has put in place a risk management
policy, covering risk assessment and minimization measures. The Company's
imports and exports are mainly in US Dollars offering a significant natural
hedge to currency exposures. Selective hedging and other appropriate measures
are taken on a consistent basis to neutralize any negative impact of exchange
rate fluctuation.
Internal Control System:
The Company has adequate
internal control systems and procedures to ensure optimal use of resources and
protection thereof commensurate with the size and nature of its business. The
Company has an Internal Audit Department which conducts periodic audits in
different functional and operational areas at various locations to ensure
adequacy of the internal control system, adherence to the Company's policies
and guidelines and compliance with the applicable laws and regulations of the
country, and periodically carries out follow-up review audit to ensure
implementation of recommendations. The Croup Auditors of the Parent Company
also conduct audit of certain functional and operational areas.
The Audit Committee of the
Board of Directors inter-alia reviews internal control systems and their
adequacy, significant risk areas, observations made by the Internal Auditors on
control mechanism and on the operations of the Company, recommendations made
for the corrective action and internal audit reports. The Committee also
reviews with the Statutory Auditors and the Management, key issues and
significant processes, accounting policies, etc. The Company continues its
efforts in strengthening internal controls.
Manufacturing activities at
the Santa Monica Works during the year under review were on a scale lower than
the previous year in Phenolic Antioxidants and Optical Brighteners. There was
change in the site product portfolio in respect of Phenolic Antioxidants, and
Phenol was replaced by another export oriented product. Options re being
considered to introduce new products in the site portfolio. Products introduced
during the previous year were well received by the market and have shown
healthy growth in the current year. Steps have been initiated for establishment
of a new manufacturing facility as an Export Oriented Unit for the manufacture
of Specialty Effects Chemicals at an estimated cost of Rs. 500 million. Preliminary
work related to the project has commenced, however due to some site related
issues the execution process has been slowed down. Consent for setting up of an
Effluent Treatment Plant (ETP) has been received from the Goa State Pollution
Control Board. Setting up of this ETP at an estimated cost of Rs. 75 million is
currently at the design stage. The Company continues to enjoy high Quality
standards with 99% of the product batches passing quality parameters in the
first instance.
Subsidiary Company
The turnover of Diamond
Dye-Chem Limited (DDL), a wholly owned subsidiary of the Company, has increased
by 43% to Rs. 1,237 million for the year ended 31.03.2006, as against the
previous year's turnover of Rs. 862 million. Domestic sales have increased in business
lines textile and detergent, despite price deterioration and slower than
expected market development. Profit after tax for the year ended 31.03.2006,
stood at Rs. 150 million as against Rs. 102 million for the previous year. DDL
declared a dividend of 100%, i.e. Rs. 10/- per fully paid-up Equity share of
Rs. 10/- each, for the financial year ended 31.03.2005, and the Company
received Rs. 30 million during the year under review. In order to conserve the
resources for the substantial expansion projects in hand, the Board of
Directors of DDL at its meeting held on 16.06.2006, has not recommended a
dividend for the financial year ended 31.03.2006.
DDL has achieved full
capacity utilization at its Ankleshwar factory with productivity improvement
due to process upgrades. There were no loss time accidents at the factory
during the year. The Company is in the process of expanding its production
capacity for which the Company has purchased land adjacent to its existing
factory at an estimated cost of around Rs. 10 million. The setting up of a
manufacturing facility as an Export Oriented Unit in close proximity to its
existing manufacturing site at Ankleshwar, Gujarat, for the manufacture of
Color Formers and Thermal Developers at an estimated cost of around Rs. 700
million is in progress and is expected to be operational by the third/fourth
quarter of 2006-07. This new facility is expected to generate a turnover of Rs.
500 million on full year basis. As a part of the global restructuring of its
businesses, Ciba Specialty Chemicals Holding Inc., Basel, Parent Company of the
Company's holding Company has agreed to sell Textile Effects business to
Huntsman Corporation, USA. The Board of Directors of DDL approved the sale of
its Textile Effects Business (comprising non production assets and know-how) as
a going concern to Huntsman Advanced Materials (India) Private Limited or to
its nominee in India or to such other person as may be identified by the Board
of Directors of the Company for a lumpsum consideration of not less than Rs.
430 million subject to the approval of the shareholders. Pursuant to section
293(1 )(a) of the Companies Act, 1956, the shareholders of the Company at their
meeting held on 26.05.2006, approved the sale of the said business. The
business is expected to be sold to Huntsman International (India) Private
Limited with effect from 01.07.2006.
The Report and Accounts of DDL are annexed to this Report
along with the statement pursuant to Section 212 of the Companies Act, 1956.
However, in the context of mandatory requirements to present Consolidated
Accounts, which provides Members with a consolidated position of the Company,
including its subsidiary, namely DDL, at the first instance, Members are being
provided with the Report and Accounts of the Company treating these as abridged
Accounts as contemplated by Section 219 of the Companies Act, 1956. Members
desirous of receiving the full Report and Accounts of DDL will be provided the
same on receipt of a written request from them. This will help in achieving
considerable cost saving in connection with the printing and mailing of the
Report and Accounts.
Group
Companies:
- Ciba Specialty Chemicals
Holding Inc
- Ciba India Private Limited
The company’s fixed assets of important value
include land, building, plant, machinery and laboratory equipment, furniture,
fittings and other equipment and vehicles.
Holding
Company
Ciba
Specialty Chemicals Holding Inc., Switzerland
Holds 69.28
% equity shares in the company. (58.28 % held directly and 11 % through its
subsidiary Ciba India Private Limited).
Trade
References:
- Anami Organics
- Ankur Dyestuff
Industries
- Apex Dyes &
Intermediates
- Classic Colour Private
Limited
- Dyestuff &
Intermediates
- Gunny Gujarat
- Jackson Chemical
Industries
- Kunder Chemicals Private
Limited
- Nepa Overseas
- Safex Systems
- Solar Interchem Private
Limited
- Sterling Auxiliaries
Private Limited
- Suyog Dye Chemie
Private Limited
- Swapnil Organics
Private Limited
- Swathi Organics &
Specialities Private Limited
- System & Components
(India) Private Limited
- Urmi Polymers
industries
Press Releases :
Ciba Specialty Chemicals announces paper chemicals price
increase in Europe
22.11.2005, Basel, Switzerland
%20LIMITED%2015-Nov-2006_files/image011.gif){kind=small}
Price increase to help offset rising raw material, freight
and energy costs Commitment to maintain quality, service and innovation Ciba Specialty Chemicals announced today
that its paper business in Europe will increase prices for its paper chemicals
in line with the announcement of global price increases for water & paper
chemicals on November 21. Price increases will be implemented across a range of
product lines to help offset recurring cost increases due to continued industry
raw material rate increases and shortages, freight expenses and rising energy
costs. Price increases for all affected product lines are effective
immediately, with customers to be contacted individually regarding the
specifics as they apply to their situation.
Product Line Price Increase
Whiteners 20 %
Retention Aids & Flocculants 10 %
Deposit Control Aids 4 %
Specialty Coating 6 %
ASA Sizing 25 %
The move on price will also help to
ensure that the Company continues to provide its customers with innovative,
quality products and a high level of service in a competitive environment.
Ciba
Specialty Chemicals (SWX: CIBN, NYSE: CSB) is a leading global company
dedicated to producing high-value effects for its customers’ products. They
strive to be the partner of choice for their customers, offering them
innovative products and one-stop expert service. They create effects that
improve the quality of life – adding performance, protection, color and
strength to textiles, plastics, paper, automobiles, buildings, home and
personal care products and much more. Ciba Specialty Chemicals is active in
more than 120 countries around the world and is committed to be a leader
in its chosen markets. In 2004, the Company generated sales of 7 billion
Swiss francs and invested 288 million in R&D.
Ciba Specialty Chemicals announces global price increases
for its full range of paper and water treatment chemicals
21.11.2005, Basel, Switzerland
Significant
increases in raw material costs and continued high energy & transport costs
contributing to price pressure Commitment to maintain quality, service and
innovation
Ciba Specialty Chemicals announced
today that its Water & Paper Treatment Segment is increasing prices for its
entire range of water and paper treatment chemicals on a global basis.
Increases will be between 5% and 30%, depending on region and product
range. All price increases are effective immediately, with customers to
be contacted individually regarding the specifics as they apply to their
situation.
According to Mark Garrett, Head
Water & Paper Treatment segment, “the Segment is faced with an ongoing
escalation in raw material prices as well as freight expenses and energy costs.
To maintain security of supply and the level of service that their
customers have come to expect from Ciba Specialty Chemicals, they must continue
to have a sustainable operating environment. They also remain committed
to the development of innovative, high quality products that will bring
operating efficiencies for their customers; this can only be achieved if the
burden of inflation in raw materials prices, freight expenses and energy costs
is passed through the chain.”
Ciba
Specialty Chemicals (SWX: CIBN, NYSE: CSB) is a leading global company
dedicated to producing high-value effects for its customers’ products. They
strive to be the partner of choice for their customers, offering them
innovative products and one-stop expert service. They create effects that
improve the quality of life – adding performance, protection, color and
strength to textiles, plastics, paper, automobiles, buildings, home and personal
care products and much more. Ciba Specialty Chemicals is active in more than
120 countries around the world and is committed to be a leader in its
chosen markets. In 2004, the Company generated sales of 7 billion
Swiss francs and invested 288 million in R&D.
Ciba Specialty Chemicals to globally market Daychem
Laboratories products and services to electronics markets
23.11.2005, Basel, Switzerland
Ciba
Specialty Chemicals and Daychem Laboratories sign exclusive partnership
agreement
Daychem’s offer in
specialty monomers, polymers and photoacid generators complements Ciba’s
electronic materials business Joint R&D program for development of novel
materials for the electronics market
Ciba Specialty Chemicals Electronic Materials
Daychem Laboratories, Inc.
Daychem’s expertise in synthesis and
manufacture (photo) of specialty monomers, polymers and photoacid generators
complements Ciba Specialty Chemicals’ products for photo sensitive materials
Printable Version
[JPG, 437 KB]
Daychem’s new facility in Vandalia,
Ohio, US
Printable Version
[JPG, 346 KB]
Ciba Specialty Chemicals and Daychem
Laboratories have signed an exclusive partnership agreement under which Ciba
will sell and market all of Daychem products and services to the electronics
market on a global basis. In addition, joint research will be conducted by the
two companies.
Daychem Laboratories, located
in Vandalia, Ohio, US, has been a reliable and well respected supplier of
custom designed and specialty chemicals to the electronics market for over
25 years. The company’s major expertise is in development and manufacture
of electronic grade materials. Their R&D and process development
capabilities, combined with their ability to perform small and commercial scale
manufacturing, have made Daychem a valuable partner in this industry.
“The expertise of Daychem in the
synthesis and manufacture of specialty monomers, polymers and photoacid
generators complements Ciba Specialty Chemicals’ current line of products used
in photo sensitive materials. The synergistic effects unleashed through this
partnership will create significant value for their customers. This partnership
underlines their commitment to further strengthen their position in the
electronics industry,” said Nadi Ergenc, Head of Ciba’s Electronic
Materials Business Line Americas.
Rakesh Gupta, President of
Daychem, said, “Ciba Specialty Chemicals is a strong partner with global
presence. This partnership will allow us to leverage what they are best at –
innovation, fast product development and manufacturing – and will further
strengthen their position as a reliable partner for the demanding global
electronics industry.”
Ciba
Specialty Chemicals’ key products currently offered to the electronics industry
include pigments and photoinitiators for colors filters in liquid crystal
displays (LCDs), pigments and light stabilizers for organic light‑emitting
diodes (OLEDs), functional dyes for optical information storage and photo acid
and photo base generators for microelectronics. For more information see www.cibasc.com/electronicmaterials
Ciba Specialty Chemicals (SWX: CIBN,
NYSE: CSB) is a leading global company dedicated to producing high-value
effects for its customers’ products. They strive to be the partner of choice
for their customers, offering them innovative products and one-stop expert
service. They create effects that improve the quality of life – adding
performance, protection, color and strength to textiles, plastics, paper,
automobiles, buildings, home and personal care products and much more. Ciba
Specialty Chemicals is active in more than 120 countries around the world
and is committed to be a leader in its chosen markets. In 2004, the Company
generated sales of 7 billion Swiss francs and invested
288 million in R&D.
Daychem Laboratories, Inc.,
Ohio, US, is a privately owned specialty chemicals company founded over
25 years ago. Daychem has developed and manufactured products mainly for
the electronics and the federal aerospace industry and unites lab, kilo and
small scale manufacturing capabilities under one roof.
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.45.01 |
|
UK Pound |
1 |
Rs.84.91 |
|
Euro |
1 |
Rs.57.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
8 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |