MIRA
INFORM REPORT
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Report Date : |
22.11.2006 |
IDENTIFICATION
DETAILS
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Name : |
SUDARSHAN
CHEMICAL INDUSTRIES LIMITED |
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Registered Office : |
162, Wellesley Road, Pune – 411 001,
Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.02.1951 |
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Com. Reg. No.: |
25-1082 |
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CIN No.: [Company
Identification No.] |
L2411PN1951PLC008409 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNES06998F |
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Legal Form : |
A
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturing
of Inorganic Pigments, Organic Pigments & Dyestuffs, Intermediates and
Pesticides. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD
3750000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed company having fine track. Financial
position is good. Payments are correct and as per commitments. Trade
relations are fair. The company is doing well. It can
be considered good for normal business dealings at usual trade terms and
conditions. The company can be regarded as a promising business partner in a
medium to long run. |
LOCATIONS
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Registered Office : |
162, Wellesley Road, Pune – 411 001,
Maharashtra, India |
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Tel. No.: |
91-20-2612 7334/26058888/26058046 |
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Fax No.: |
91-20-2612 5900/26058222 |
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E-Mail : |
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Website : |
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Factory
1 : |
Pune 162,
Wellesley Road, Pune – 411 001, Maharashtra. Roha 46
MIDC Estate, Dhatav, Roha - 402 116, Raigad, Maharashtra Mahad Plot No. A-19/1+2, MIDC Estate, Mahad - 402 301, Raigad, Maharashtra. |
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E-mail
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Pigment technical enquiry: pts@sudarshan.com Pigment domestic sales enquiry: pgmtscm.home@sudarshan.com Pigment international sales enquiry: pgmtscm.export@sudarshan.com Agro enquiry: agro@sudarshan.com Specialty (pearl) pigments enquiry: pearl@sudarshan.com Careers: careers@sudarshan.com Investor Relations: shares@sudarshan.com Other enquiries: contact@sudarshan.com |
DIRECTORS
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Name : |
Mr.
Balkrishna Jagannath Rathi |
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Designation : |
Executive Chairman |
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Date of Birth/Age : |
75 Years |
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Qualification : |
B.E. |
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Experience : |
49 Years |
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Date of Appointment : |
01.10.1956 |
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Name : |
Mr.
Dr. Koji Oe (Ceased w.e.f. 10.12.2004) |
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Designation : |
Alternate Director to Mr. K. Kudo |
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Name : |
Mr. T.
Tomiyama (Ceased w.e.f. 10.12.2004) |
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Designation : |
Alternate
Director to Mr. H. Wakabayashi (Ceased w.e.f. 10.12.2004) |
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Name : |
Mr. T.
Tanaka (Ceased w.e.f. 10.12.2004) |
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Designation : |
Alternate
Director to Mr. K. Ideta (Ceased
w.e.f. 10.12.2004) |
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Name : |
Mr. N.
Tsuji (Ceased w.e.f. 10.12.2004) |
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Designation : |
Alternate
Director to Mr. N. Miyake (Ceased w.e.f. 10.12.2004) |
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Name : |
Mr.
Dr. Neelkanth Annappa Kalyani |
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Designation : |
Director |
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Name : |
Mr.
Bansibhai Sunderlala Mehta |
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Designation : |
Director |
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Name : |
Mr.
Pralhad Parsram Chhabria |
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Designation : |
Director |
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Name : |
Mr.
Dara Nadirshaw Damania |
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Designation : |
Director |
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Name : |
Mr.
Shrikrishna Narhar Inamdar |
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Designation : |
Director |
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Name : |
Mr.
Abhay Navalmal Firodia |
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Designation : |
Director |
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Name : |
Mr.
Subramanian Padmanabhan |
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Designation : |
Director |
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Name : |
Mrs.
Anupama Vinay Ranade |
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Designation : |
Nominee of ICICI Bank Limited
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Name : |
Mr.
Kishore Laxminaryan Rathi |
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Designation : |
Vice
Chairman & Whole Time Director |
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Date of Birth/Age : |
66 years |
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Qualification : |
B.Sc. , B. Sc.(Tech), M. A. (Chem.) Columbia |
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Experience : |
41 years |
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Date of Appointment : |
01.01.1964 |
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Name : |
Mr.
Pradeep Ramwilas Rathi |
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Designation : |
Managing Director |
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Date of Birth/Age : |
51 Years |
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Qualification : |
M.S.(M.I.T.), M.B.A. (Columbia) |
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Experience : |
44 Years |
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Date of Appointment : |
01.04.1976 |
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Name : |
Mr.
Narayandas Jagannath Rathi |
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Designation : |
Director and Company Secretary |
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Date of Birth/Age : |
69 Years |
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Qualification : |
M.Com, M.B.A. (U.S.A.) |
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Experience : |
44 Years |
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Date of Appointment : |
01.06.1972 |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
Promoters Group – Rathis
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3461387 |
50.00 |
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Non Promoters |
3461338 |
50.00 |
Total
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6922725 |
100.000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing
of Inorganic Pigments, Organic Pigments & Dyestuffs, Intermediates and
Pesticides. |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Inorganic Pigments |
MT |
6530 |
5430 |
5567 |
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Organic
Pigments |
MT |
6400 |
6805 |
5952 |
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Intermediates |
MT |
4100 |
2320 |
196 |
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Pesticides (100%) |
MT |
3100 |
3520 |
2129 |
GENERAL
INFORMATION
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No. of Employees : |
1181 |
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Bankers : |
v
Bank
of Maharashtra v
State
Bank of India v
Bank
of Baroda v
ICICI
Bank Limited v
HDFC
Bank Limited v
Export
– Import Bank of India v
BNP
Paribas v
Mizuho
Corporate Bank Limited |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
B. K.
Khare & Company Chartered
Accountants |
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Address: |
Mumbai,
Maharashtra |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
8000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 80.000 Millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
|
6922775 |
Equity
Shares |
Rs. 10/- each |
Rs. 69.227 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
69.227 |
69.227 |
69.227 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
918.953 |
856.747 |
756.855 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
988.180 |
925.974 |
826.082 |
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LOAN FUNDS |
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1] Secured Loans |
417.979 |
432.995 |
533.795 |
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2] Unsecured Loans |
448.432 |
418.912 |
269.723 |
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TOTAL BORROWING |
866.411 |
851.907 |
803.518 |
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DEFERRED TAX LIABILITIES |
123.922 |
139.569 |
144.096 |
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TOTAL |
1978.513 |
1917.450 |
1773.696 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
800.855 |
837.204 |
939.482 |
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Capital work-in-progress |
24.700 |
22.857 |
0.205 |
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INVESTMENT |
5.666 |
5.675 |
6.040 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
788.829 |
822.782 |
595.076 |
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Sundry Debtors |
862.621 |
703.735 |
476.573 |
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Cash & Bank Balances |
91.153 |
91.801 |
191.489 |
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Other Current Assets |
23.673 |
29.904 |
32.344 |
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Loans & Advances |
148.454
|
104.339
|
149.358 |
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Total Current Assets |
1914.730
|
1752.561
|
1444.840 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
711.462
|
664.775
|
582.127 |
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Provisions |
55.976
|
36.072
|
34.744 |
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Total Current Liabilities |
767.438
|
700.847
|
616.871 |
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Net Current Assets |
1147.292
|
1051.714
|
827.969 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1978.513 |
1917.450 |
1773.696 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
3969.962 |
3871.044 |
3168.833 |
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Profit/(Loss)
Before Tax |
149.243 |
213.398 |
135.870 |
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Provision
for Taxation |
46.751 |
65.473 |
40.233 |
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Profit/(Loss)
After Tax |
102.492 |
147.925 |
95.637 |
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Export
Value |
1244.391 |
978.695 |
936.233 |
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Import
Value |
587.613 |
466.127 |
324.394 |
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Total
Expenditure |
3820.717 |
3657.645 |
3032.962 |
QUARTER
|
PARTICULARS |
|
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
|
Sales Turnover |
|
877.400 |
1152.900 |
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Other Income |
|
10.400 |
7.200 |
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Total Income |
|
887.800 |
1160.100 |
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Total Expenditure |
|
812.300 |
1070.300 |
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Operating Profit |
|
75.500 |
89.800 |
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Interest |
|
19.300 |
26.800 |
|
Gross Profit |
|
56.200 |
63.000 |
|
Depreciation |
|
29.300 |
29.400 |
|
Tax |
|
13.400 |
12.900 |
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Reported PAT |
|
17.900 |
25.200 |
200606 Quarter 1 - 1. The above results have been taken on record by the Board of Directors in their meeting held on 29.07.2006. 2. A 'Limited Review' of the financial results of the Company for the quarter ended 30.06.2006 has been completed by the Statutory Auditors. 3. Provision for Current Tax includes Fringe Benefit Tax. 4. During the quarter no investor complaint was received and there were no investor complaints pending for redressal as at the beginning and at the end ot the quarter.
200609 Quarter 2 - EPS is Basic & Diluted Status of Investor Complaints for the quarter ended 30.09. 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The above unaudited financial results were reviewed by the audit committee and taken on record by the Board of Directors in their meeting held on 28.10.2006. 2. A 'Limited Review' of the financial results of the Company for the quarter ended 30.09.2006 has been completed by the Statutory Auditors. 3. Provision for Current Tax includes Fringe Benefit Tax. 4. The Company has decided not to pursue the Jammu pesticides formulation project, but to continue to outsource from other parties in Jammu.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.90 |
0.95 |
1.06 |
|
Long Term Debt-Equity Ratio |
0.32 |
0.43 |
0.53 |
|
Current Ratio |
1.26 |
1.26 |
1.19 |
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TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.72 |
1.64 |
1.41 |
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Inventory |
5.44 |
5.80 |
5.69 |
|
Debtors |
5.60 |
6.97 |
7.88 |
|
Interest Cover Ratio |
2.80 |
4.47 |
2.86 |
|
Operating Profit Margin(%) |
7.98 |
9.60 |
9.46 |
|
Profit Before Interest And Tax
Margin(%) |
5.29 |
6.69 |
5.94 |
|
Cash Profit Margin(%) |
5.02 |
6.51 |
6.24 |
|
Adjusted Net Profit Margin(%) |
2.34 |
3.60 |
2.72 |
|
Return On Capital Employed(%) |
12.80 |
16.17 |
12.89 |
|
Return On Net Worth(%) |
10.74 |
16.94 |
12.16 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.134.00/- |
|
Low |
Rs.134.00/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The
company was incorporated on 19th February, 1951 at Pune in
Maharashtra having Company Registration Number 1082.
Subject
is controlled by Mr. R. J. Rathi.
The
company offered shares to public at par in December, 1976. Until the seventies, the company
manufactured organic / inorganic pigments and intermediates. But in 1980, it diversified into pesticides.
In
January, 1991, it commenced manufacture of a new range of organic pigments such
as pthalocyanine with technology from Dainippon Ink & Chemicals,
Japan. The Japanese collaborator apart
from providing technology, also holds a 29.03% stake in the company. The company entered the area of
environmental engineering in collaboration with Radian Corporation, USA. It went public with a rights offer at a
premium of Rs. 100 to set up a plant to manufacture 1125 tpa of organic
pigments at Mahad.
The
company announced bonus shares (1:2). Its quality management has been designed
to meet the requirements of ISO 9001 certification by BVQL. During the year
1994-95, exports amounted to Rs. 458.00 millions has received ISO 9001
certification in respect of its Pigment division. The Government has selected
the best industry for Top Excellence Safety Awards. Pune factory has won
"First Best Safety Performance Award" in Industrial Safety
Competition five times in the last six years.
During
the year 2000-01, the company has received the prestigious ISO 9001
re-certification in respect of its Pigment Division by Bureau Verities Quality
International (BOQI). During the year 2000-01, Mahad factory has been awarded
the covted ISO 14000 certification by Bureau Veritas Quality International
(BVQI) which reconfirms the emphasis given by the company to safety and
environment aspects and strict adherence to safety and environment standards.
Fixed
Assets:
Freehold
& Leasehold Land, Buildings, Plant & Machinery, Vehicles, Furniture
& Fixtures and Office Equipments.
The
company has received the following awards :
v
The
Government has been selected as the best industry for Top Excellence Safety
Awards.
v
Pune
factory has won "First Best Safety Performance Award" in Industrial
Safety Competition five times in the last six years.
v
During
the year 1999-2000, The National Safety Council has selected Mahad factory for
coveted "Top Excellence Safety Award".
The
company is in trade terms with :
v
Blue
Crystals Chemicals Limited
v
Nichrome
Metal Works
v
Techno
Filters Private Limited
v
Besto
Container Industries
v
The
Coronation Arts Crafts
v
Deccan
Chromates Limited
v
Chemac
Equipments Private Limited
v
J.
P. Enterprises
v
Heritage
Associates
v
Inwac
Metals & Chemicals Private Limited
v
Jaju
Chemicals Private Limited
v
Oriental
Agency
v
Royal
Plastics
v
Shiv
Chemicals
v
PCI
Services
v
Som
Phytopharma (India) Limited
v
Spectrum
Ethers Limited
v
Shri
Ambuja Metallic
v
Serve
Al
v
Shree
Tirupati Enterprise
v
Silvo
Liacal Chemicals Limited
v
Makwana
Brothers
v
Monga
Electronics Private Limited
v
Daman Ganga Paper Converters (Private) Limited
v
Innovative Technomics Private Limited
v
Maharastra Metal Works Private Limited
v
Metaltek Techno-Projects (India) Private Limited
v
Premier Orgochem Ind. Private Limited
v
Protchem Industries (India) Limited
v
Sahyadri Graphics Private Limited
v
Shree Shivshankar Drugs & Pharmaceuticals
Private Limited.
v
Shree Siddhi Poly Sacks
v
Silvo Liacal Chemicals Limited
v Sudarshan Engineering & Chemical Corporation
New
Relationship With Danippon INK and Chemicals INC, Japan:
Members are
aware that Dainippon Ink and Chemicals Inc. (DIC) Japan have for global and
strategic reasons entered into an Agreement terminating the Collaboration
agreement with the Company and the Shareholders Agreement with Rathi Group
(Promoters). Consequentially, DIC has divested 14,51,700 equity shares of Rs.
10% each aggregating 20.97% of the paid up equity capital of the Company in
favour of Rathi Group and will continue to hold 5,57,989 equity shares aggregating
8.06% of the paid up capital. Consequent to the Agreement, DIC has withdrawn
their nominees on the Board of Directors of the Company.
The Company appreciates the harmonious relationship it has enjoyed with DIC in
the past and is confident that the same spirit of co-operation will continue in
the future also.
DIC will continue to import the pigments manufactured by the Company and also
entrust the Company with Toll Manufacture of certain pigments as well as R
& D work to develop specific pigments.
THE YEAR IN RETROSPECT
Sales :
Gross Revenue for the year ended 31.03.2006 amounted to Rs. 4013.000 million as
against Rs. 3751.000 million achieved during the previous year. profit after
tax for the year ended 31.03.2006 was Rs. 103.000 million as against Rs.
148.000 Million earned during the previous year.
Adverse climatic conditions on account of erratic rainfall in several parts of
the country as also poor pest infestation affected the performance of the Agro
Chemicals Division which constitutes about half of the total domestic sales.
Pigment Division also recorded lesser margins inspite of posting higher sales
primarily on account of resistance to price increases.
All these factors put together had an impact on the overall revenues and
profitability. Nevertheless to say, the performance of the Company viewed in
the background of difficult operating conditions is considered
satisfactory.
Exports
The Pigment export market continues to witness stiff competition from other
competitors in the developed countries. During the year Company registered an
export turnover of Rs. 1185.000 million as against Rs. 1098.000 million
achieved during the previous financial year reflecting a growth of 8%.
The focus will be more on the export of High Performance Pigments and exploring
new markets such as Africa, Russia and South America. Setting up an integrated
distribution network in these markets will be an equally challenging task.
Developing customised products is also high on the agenda.
MANAGEMENT DISCUSSION AND ANALYSIS
Business of the Company - an
overview
The Company is mainly engaged in the manufacturing and processing of a wide
range of Organic and Inorganic Pigments. Pearl Pigments, Pesticides, Agro
Chemicals and other products with manufacturing facilities at Pune. Roha and
Mahad. Dist.Raigad, Maharashtra.
The Company was the first chemical Company in India to be awarded the ISO 9001
Certificate in the year 1991. Its Pune, Roha and Mahad plants have also been
awarded the ISO 14001 Certificate. The Mahad plant has been certified as OHSAS
18001 by BVQI for implementing systems aimed at reducing occupational risks in
work areas besides focusing on health and safety. The Company has well
established R & D laboratories recognised by Department of Scientific &
Industrial Research (DSIR). It has a wide distribution net work in India as
well as abroad with stock points at more than 20 places in the country.
All the manufacturing plants and offices in the country are well connected with
the help of Enterprise Resource Planning system (ERP).
Financial review - 2005-2006
The Total Revenue for the year ended 31.03.2006 amounted to Rs. 4013.000
million as against Rs.3751.000 million for the previous year. The Net Profit
after tax for the year ended 31.03.2006 amounted to Rs. 103.000 million against
Rs.148.000 million for the previous year.
The Company has an internal audit system and procedures commensurate with the
size and nature of its business.
Sudarshan Chemical Industries, a pioneer in the field of pigments in India, was set up in 1952 with the initiative of its chairman, late Dr. R. J. Rathi. Over the last 50 years, the company has gained a position of dominance in the pigment industry, and has also diversified into the fields of Agrochemicals and Environment Management. Its policy is rooted in a mission to reinvent itself continuously by implementing the latest technologies, coupled with a strong emphasis on quality and standardization.
ABOUT ORGANIZATION
Sudarshan Chemical
Industries Limited. (SCIL) has been a leading player in the Pigment and
Agrochemical sector for over 50 years. This success is a result of their
adherence to international standards and efficient practices in every aspect of
their operations. They are the first chemical company in India to be awarded
the ISO 9001 certificate for their Pigment Division in 1993. The high quality
standards are maintained at every level of the company even as they
continuously change to improve ourselves.
Production of their Pigments is carried out at plants in Pune, Roha, Mahad and
that of Agrochemicals is carried out at Roha. Their vast range of products
includes organic and inorganic pigments, speciality pigments, intermediates and
pesticides. Great emphasis is placed on Research and Development activities.
There are over 100 qualified scientists currently working in their
laboratories.
In order to improve
their customer service, they have implemented many planning tools. One such
tool is SAP R/3, which is the world’s leading Enterprise Resource Planning
software. They are also the first company in India to implement the Customer
Relationship Module to this software. Their factories, branch offices and
depots are now constantly connected with each other, allowing for better response
to customer needs. Supply Chain solutions are currently being implemented to
further increase the value of their goods. Further they are in process of
implementing SAP HR Module to strengthen the HR practices within the
organization.
VISION
- World Class Manufacturer of Pigments, Agro
Chemicals & Speciality Chemicals in terms of quality and service.
- Cost of delivered product at par with
China.
- No.1 in volumetric terms in Pigment
business in South Asia and Middle East.
- Among top three in South Asia in
Agrochemicals in categories they are in.
CORPORATE VALUES
Sudarshan has three
divisions - Pigments, Agrochemicals and Environment Management.
Pigment Division
Established in 1952, this division is the flagship SBU of Sudarshan and
manufactures various Organic, Inorganic and Speciality Pigments which are
produced in its three plants of Pune, Roha and Mahad. The Pigment Division
contributes approx. 70% of the total turnover of the company and caters to
paints, printing inks, plastics and several other industries like cosmetics,
textiles, leather etc. The Division has an excellent domestic and international
network.
It also has the distinction of being the first to be ISO 9001 certified as well
as the first to set up indigenous R&D facilities. The R&D laboratories
offer excellent facilities with modern equipment and highly qualified manpower
which is further strengthened by various technology tie ups with International
leaders in the Chemical Industry.
Speciality Pigments Division
Sudarshan Chemical
Industries is the only manufacturer of Pearl Pigments (also known as “effect”
pigments) in India for the last 3 decades and has an installed capacity of 1500
tons / year.
Pearl pigment particles are thin, transparent platelets of high refractive
index, which partially reflect and partially transmit light. Simultaneous
reflections from many layers of oriented platelets create a sense of depth that
is characteristic of pearl luster.
They manufacture two kinds of Pearl Pigments:
Mica Based Pearl
Pigments:
These types of Pearl Pigments are manufactured by coating Mica with either
Titanium Dioxide or Iron Oxide. The transparency of pigment particles is due to
extremely thin transparent coating of Titanium Dioxide in the form of
micro-crystals.
There are several applications which use Mica Pearl Pigments such as textile
printing, paints, plastics, inks and cosmetics.
Lead Carbonate
Based Pearl Pigments:
“Lead Pearls” are basically Lead Carbonate hexagonal crystals having high
refractive index. Simultaneous reflection and refraction of the light from many
microscopic layers produce a kind of ‘shimmery luster’, called ‘Pearl essence’.
Lead Pearl Pigments
are used in applications like spray coating, dip coating, brush coating, roller
coating and printing on paper, plastic material, leather, wood, etc. The pearl
crystals are dispersed in different vehicles such as hydrocarbon, MEK, toluene
or water and are available as dispersed pastes containing about 50% crystals by
weight. The paste containing a particular vehicle is to be selected on the
basis of the end use.
Agrochemicals Division
Emergence of Agrochemicals:
The Agrochemicals division, started in 1982, has made rapid strides and has
catapulted Sudarshan into one of the leading companies in India through its
innovative and quality products. Their research and development team has kept
pace with the latest technology and has consistently introduced newer molecules
with a more favorable environmental profile. From a level of around US $18
million in fiscal 2002-2003, the division has grown to over US $ 31 million by
2004-2005. Presently they are manufacturing various range of technical grade
insecticides, fungicide, plant growth regulator and their formulations, for
their both domestic and international customers.
Sudarshan, an ISO 9001 and ISO 14001 company with a total turnover of
approximately US$ 90 million, is aiming for OHSAS 18001 in the near future.
The SBU contributes 30% of the total turnover of the company. The division has
an excellent network of over 1000 distributors and 19 depots in the domestic
market and is backed by a very strong R&D team. Today, all the products
manufactured in this division are leading brands in their respective categories
and Sudarshan is the only Indian Company to introduce Triazoplus - a product
made by only a handful of companies worldwide.
Environment
Management Division
Started in technical collaboration with Radian Corporation, USA, the
Environment Management Division offers consultancy in the fields of :
Waste Water Treatment,
Solid / Hazardous Waste Management,
Gaseous Emission Control,
Microbial Culture and,
Safety Services.
Special training has been imparted to the divisions scientists in the Radian
labs, USA. Besides designing the in house effluent treatment plants, the
division has helped in designing a wide variety of treatment plants for clients
such as Bajaj Auto, Telco, Cummins India, Manikchand Packaging, Tetra Pak India
and Marathwada Chemicals. To its credit it has also developed common effluent
treatment plants at Vatva, Ahmedabad.
Sudarshan Chemical Industries Limited is the first chemical company in
India to be awarded the ISO 9001 certificate for its Pigments Division.
BVQI (UK) conducted the first training course for ISO 9001 in 1991 and
subsequently the quality system was designed and developed in line with the ISO
requirements. In 1993, the pigment division of Sudarshan was awarded the ISO
9001 certification by BVQI and since then two surveillance vists are conducted
every year. Sudarshan was recertified in 1996 and in 2001 for the latest
version (ISO 9001:2000). Today, this well documented system consists of over 20
manuals, 400 procedures, thousands of work instructions and formats.
BVQI (UK) has recently certified the Mahad Plant for ISO 14001 for Enviornment
standards.
Their Pune Plant is recently certified for ISO 14001 in July 2003.
Business of the company – an overview
The Company is mainly engaged in the manufacturing and processing of a wide range of Organic and Inorganic Pigments, Pearl Pigments, Intermediates, Pesticides, Agro Chemicals and other products with manufacturing facilities at Pune, Roha and Mahad, Dist.Raigad, Maharashtra.
The Company was the first chemical Company in India to be awarded the ISO 9001
Certificate in the year 1991. Its Pune, Roha and Mahad plants have also been
awarded the ISO 14001 Certificate. The Mahad plant has been recently certified
OHSAS 18001 by BVQI for implementing systems aimed at reducing occupational
risks in work area besides focussing on health and safety. The Company has well
established R & D laboratories approved by CSIR for pigments and
pesticides. It has a wide distribution net work in India as well as abroad with
stock points at more than 20 places in the country.
All the manufacturing plants and offices in the country are well connected with
the help of Enterprise Resource Planning system (ERP).
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.44.75 |
|
UK
Pound |
1 |
Rs.85.14 |
|
Euro |
1 |
Rs.57.55 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |