MIRA
INFORM REPORT
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Report Date : |
14.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
ADDISONS PAINTS AND CHEMICALS LIMITED |
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Registered Office : |
Huzur Gardens, Sembiam, Chennai-600011, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
16.06.1948 |
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Com. Reg. No.: |
18-25 |
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CIN No.: [Company
Identification No.] |
U24222TN2038PLC000025 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEA00050B |
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Legal Form : |
Closely held Public Limited Liability Company. |
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Line of Business : |
Manufacturers, Suppliers and Exporters of Paint and Allied Products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
-- |
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Status : |
Sick unit |
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Payment Behaviour : |
Slow |
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Litigation : |
-- |
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Comments : |
Subject is a sick unit. Its networth has been eroded. It has huge
accumulated losses. The company has been referred BIFR for rehabilitation. Payments
are reported as slow and delayed. The company can be considered for any business dealings against fully
safe and secured trade terms and conditions. |
LOCATIONS
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Registered Office : |
Huzur Gardens, Sembiam, Chennai-600011, Tamilnadu, India |
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Tel. No.: |
91-44-5375887 |
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Fax No.: |
91-44-5376240 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. S Balasubramanian |
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Designation : |
Director |
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Name : |
Mr. P V Sundaram |
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Designation : |
Director |
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Name : |
Mr. V J Raghunath |
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Designation : |
Whole time Director |
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Name : |
Mr. Biji K Kurien |
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Designation : |
Director Incharge |
BUSINESS DETAILS
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Line of Business : |
Manufacturers, Suppliers and Exporters of Paint and Allied Products. |
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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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Nitrocellulose Lacquers and Ancillaries |
Ltrs. |
981927 |
981927 |
146643 |
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Paints, Enamels and Ancillaries |
Ltrs. |
2422100 |
2422100 |
943974 |
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Brake Fluid (Miscellaneous Chemicals) |
Ltrs. |
545515 |
545515 |
-- |
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Thinners |
Ltrs. |
-- |
-- |
68620 |
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Varnish and Bituminous Black |
Ltrs. |
-- |
333000 |
39940 |
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Miscellaneous Items (Motor Accessories Hardiproof and Metal Cleanings
etc.) |
Ltrs. |
-- |
453000 |
61820 |
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For Captive Consumption |
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Synthetic Resins |
M.T. |
-- |
-- |
-- |
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Alkyd |
M.T. |
1040 |
2400 |
318172 |
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Others |
M.T. |
-- |
-- |
37519 |
GENERAL
INFORMATION
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Suppliers : |
v Gopal Metal v Containers
Private Limited v Mahabir
Packaging Anupam Colors & Chemicals v The Arasan
Aluminium India Private Limited, Kanchi v Karpooram
Limited v Auxi chefnicals v Raveshia
Pigments Limited, v Sabari Packaging v Thangam Metal
Cans v Bhavana
Industries v Tambraparani
Special Cans & Cosmetics v Baschem Pharma
Limited |
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No. of Employees : |
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Bankers : |
Central Bank of India |
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Facilities : |
Secured Loans
from Banks (Rs. In millions) :
Unsecured Loans
:
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
R G N Price & Company Chartered Accountants |
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Associates/Subsidiaries : |
Ultimate Holding Company: v Amalgamations
Private Limited Holding Company: v Simpson &
Company Fellow Subsidiaries: v Addison &
Company Limited v Amalgamations
Repco Limited v Amco Batteries
Limited v Amco Properties
& Investments Limited v Associated
Printers (Madras) Private Limited v Associated
Publishers (Madras) Private Limited v Bimetal Bearings
Limited v BBL Daido
Private Limited v George Oakes
Limited v Higginbothams
Private Limited v India Pistons
Limited v IP Rings Limited v IP Pins and
Liners Limited v IP Power
Cylinder Systems Limited v LM Van Moppes
Diamond Tools India Private Limited v Shardlow India
Limited v Sri Rama Vilas
Service Limited v Speed-A-Way
Private Limited v Tractors and
Farm Equipment Limited v Tafe Motors
& Tractors Limited v Tafe Access
Limited v Tafe Reach
Limited v TAL Precision
Parts Limited v Alpump Private
Limited v TAFE USA Inc. v Southern Tree
Farms Limited v The Madras
Advertising Company Private Limited v T Stanes and
Company Limited v Stanes Motors
(South India) Limited v Stanes Motors
Parts Limited v Stanes Tyre and
Rubber Products Limited v Stanes Tea and
Coffee Limited v Stanes Agencies
Limited v Stanes
Amalgamated Estates Limited v Simpson &
General Finance Company Limited v Wheel &
Precision Forgings India Limited v Wallace
Cartwright & Company Limited v W.J. Groom &
Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity Shares |
Rs.10/- each |
Rs.20.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1200000 |
Equity Shares |
Rs.10/- each |
Rs.12.000
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 |
12.000 |
12.000 |
12.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1.300 |
1.300 |
(93.300) |
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4] (Accumulated Losses) |
(157.143) |
(122.425) |
0.000 |
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NETWORTH |
(143.843) |
(109.125) |
(81.300) |
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LOAN FUNDS |
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1] Secured Loans |
66.670 |
45.596 |
35.800 |
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2] Unsecured Loans |
97.500 |
65.500 |
54.600 |
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TOTAL BORROWING |
164.170 |
111.096 |
90.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
20.327 |
1.971 |
9.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
11.738 |
12.392 |
12.700 |
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Capital work-in-progress |
0.000 |
0.000 |
0.900 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
2.942 |
1.695 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
68.109
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50.474 |
54.100 |
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Sundry Debtors |
16.820
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9.993 |
11.500 |
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Cash & Bank Balances |
4.311
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6.074 |
6.800 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
14.381
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19.460 |
28.200 |
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Total
Current Assets |
103.621
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86.001 |
100.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
103.046
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98.117 |
98.900 |
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Provisions |
0.123
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0.000 |
6.200 |
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Total
Current Liabilities |
103.169
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98.117 |
105.100 |
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Net Current Assets |
0.452
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(12.116) |
(4.500) |
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MISCELLANEOUS EXPENSES |
5.195 |
0.000 |
0.000 |
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TOTAL |
20.327 |
1.971 |
9.100 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
112.924 |
102.681 |
156.800 |
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Other Income |
4.389 |
7.803 |
(25.400) |
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Total Income |
117.313 |
110.484 |
131.400 |
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Profit/(Loss) Before Tax |
(35.843) |
(26.734) |
(32.000) |
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Provision for Taxation |
1.125 |
(1.065) |
(0.007) |
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Profit/(Loss) After Tax |
(34.718) |
(27.799) |
(31.300) |
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Imports : |
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Raw Materials |
0.773 |
0.787 |
NA |
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Total Imports |
0.773 |
0.787 |
NA |
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Expenditures : |
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Manufacturing Expenses |
NA |
NA |
1.600 |
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Administrative Expenses |
NA |
NA |
38.800 |
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Raw Material Consumed |
74.186 |
65.409 |
47.900 |
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Miscellaneous Expenses |
NA |
NA |
8.400 |
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Salaries, Wages, Bonus, etc. |
31.357 |
23.442 |
26.900 |
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Interest |
NA |
NA |
15.200 |
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Power & Fuel |
NA |
NA |
3.200 |
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Depreciation & Amortization |
1.284 |
1.223 |
1.300 |
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Other Expenditure |
46.327 |
47.145 |
20.100 |
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Total Expenditure |
153.154 |
137.219 |
163.400 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current Ratio |
0.48 |
0.51 |
0.81 |
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TURNOVER RATIOS |
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Fixed Assets |
2.92 |
2.77 |
3.19 |
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Inventory |
2.14 |
2.36 |
2.22 |
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Debtors |
10.49 |
12.20 |
10.90 |
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Interest Cover Ratio |
(1.08) |
(0.79) |
(1.11) |
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Operating Profit Margin(%) |
(12.31) |
(8.08) |
(10.27) |
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Profit Before Interest And Tax Margin(%) |
(13.24) |
(8.99) |
(11.13) |
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Cash Profit Margin(%) |
(23.77) |
(20.27) |
(19.88) |
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Adjusted Net Profit Margin(%) |
(24.70) |
(21.19) |
(20.74) |
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Return On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
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Return On Net Worth(%) |
0.00 |
0.00 |
0.00 |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.0.00 |
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Low |
Rs.0.00 |
LOCAL AGENCY
FURTHER INFORMATION
PERFORMANCE AND
FUTURE OUTLOOK:
The turnover of the Company (including Excise Duty) for the year under review was Rs. 130.520 millions as against Rs. 118.459 millions in the previous year registering an increase of 10.18%. However the loss for the year was Rs. 34.718 millions as against Rs. 27.799 millions in the previous year. The increased loss was due high cost of petroleum based raw materials, VRS compensation for optimising manpower reduction and increase in interest and bank charges.
Continuous efforts are being taken to rationalise the operation and to improve the performance for the year 2006 - 07.
BIFR
The Board for Industrial and Financial Reconstruction to whom the Company had made reference under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 has declared the Company, a Sick Industrial Company.
PUBLIC DEPOSITS:
The Company has no public deposits and there are no unclaimed deposits.
Company’s fixed assets
include Freehold Land, Buildings, Plant and Machinery, Electrical
Installations, Furniture and Fittings and Vehicles.
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 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.41.89 |
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UK Pound |
1 |
Rs.84.17 |
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Euro |
1 |
Rs.56.93 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
9 |
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PAID-UP CAPITAL |
1~10 |
3 |
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OPERATING SCALE |
1~10 |
-- |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
3 |
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--PROFITABILIRY |
1~10 |
-- |
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--LIQUIDITY |
1~10 |
3 |
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--LEVERAGE |
1~10 |
3 |
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--RESERVES |
1~10 |
-- |
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--CREDIT LINES |
1~10 |
-- |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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21 |
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 |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
|
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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