MIRA
INFORM REPORT
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Report Date : |
18.08.2007 |
IDENTIFICATION
DETAILS
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Name : |
INDOFIL CHEMICAL COMPANY DIVISION OF MODIPON LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.08.1965 |
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Com. Reg. No.: |
20-3082 |
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CIN No.: [Company
Identification No.] |
L65993UP1965PLC003082 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRTM 00650G |
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Legal Form : |
Public Limited liability Company. The Company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Marketing of Synthetic Filament Yarn (Nylon and Polyester), Yarn Waste (including derived) & By-Products and Mancozeb Indofil M-45/ other agro formulations, Speciality industrial chemicals and other chemicals. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1250000 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. The company has seen ups and downs in the past.
It has improved its performance and doing well. Trade relations are fair. Payments are correct and as per commitments.
The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-1232-242201 to 242209 |
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Fax No.: |
91-1232-242084 |
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E-Mail : |
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Website : |
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Corporate Office : |
E-3, 2nd Floor, Kailash Colony, |
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Tel. No.: |
91-11-41627019 |
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Fax No.: |
91-11-41733389 |
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E-Mail : |
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Factory 1 : |
Kolshet, Off. |
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Tel. No.: |
91-22-2534 1877 |
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Fax No.: |
91-22-2534 3771 |
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Factory 2 : |
Modinagar -
Modipon Fibres Company
(Fibres Division) |
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Branches : |
Nirlon House, |
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Tel. No.: |
91-22-2493 7391 / 2496 0000 |
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Fax No.: |
91-22-2493 5667 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. K. K. Modi |
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Designation : |
President and Managing Director
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Qualification : |
B.Sc. |
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Date of Appointment : |
25.09.1967 |
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Name : |
Mr. Mahendra K. Modi |
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Designation : |
Managing Director |
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Qualification : |
B.Sc. (Chem. Engg.) A.I.C.E., Ph. D. |
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Date of Appointment : |
15.07.1967 |
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Name : |
Mr. Atul Kumar Gupta, IAS |
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Designation : |
Director |
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Name : |
Ms. Charu Bhartia |
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Designation : |
Director |
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Name : |
Mr. Manish K. Modi |
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Designation : |
Director |
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Name : |
Mr. L. Mishra |
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Designation : |
Director |
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Name : |
Mr. C. K. Tewary, IAS |
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Designation : |
Director |
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Name : |
Mr. Santosh K. Aggarwal |
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Designation : |
Director |
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Name : |
Mr. K. N. Modi |
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Designation : |
Director |
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Name : |
Mr. S. B. Lal |
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Designation : |
Director |
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Name : |
Mr. R. Loonkar |
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Designation : |
Director (Nominee IFCI) |
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Name : |
Mr. Rajive Kumar |
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Designation : |
Director (Nominee (UPSIDC) |
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Name : |
Mr. Ravindra Singh, IAS |
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Designation : |
Director (Nominee of UPSIDC) |
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Name : |
Mr. Ravi Mathur, IAS |
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Designation : |
Director |
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Name : |
Mrs. Lata Singh |
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Designation : |
Director (Nominee of UPSIDC) |
KEY EXECUTIVES
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Name : |
Mr. C. S. Panda |
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Designation : |
Company Secretary |
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Name : |
Mr. A. K. Goel |
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Designation : |
Company Secretary |
SHAREHOLDING
PATTERN
As on 30.06.2006
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Individuals/Hindu Undivided Family |
398774 |
5.09 % |
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Bodies Corporate |
3590484 |
45.81 % |
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Public
Shareholding |
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Institutions |
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Mutual Funds/ U T I |
7600 |
0.10 % |
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Financial Institutions/Banks |
275 |
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Central Government/ State Government(s) |
1301974 |
16.61 % |
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Insurance Companies |
238453 |
3.04 % |
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Foreign Institutional Investors |
300000 |
3.83 % |
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Non-Institutions |
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Bodies Corporate |
454302 |
5.80 % |
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Individuals : |
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(i) Individual Shareholders holding nominal
Share Capital upto Rs. 0.1 Millions |
709938 |
9.06 % |
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(ii) Individual Shareholders holding
nominal Share Capital in excess of Rs. 0.1 Millions |
166484 |
2.12 % |
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Any Other (specify) : |
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-NRIs / OCBs |
332613 |
4.24 % |
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-Clearing Members |
337160 |
4.30 % |
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Total
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7838057 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Synthetic Filament Yarn (Nylon & Polyester), Yarn Waste (including derived) & By-Products and Mancozeb Indofil M-45/ other agro formulations, Speciality industrial chemicals and other chemicals. |
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Products : |
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PRODUCTION STATUS
The company’s production status for the year ended 31st March, 2005 was as under:-
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Class of Goods |
Unit
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Installed Capacity |
Actual Production |
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Fibres
Division |
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MT |
19940 |
9321 |
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Synthetic Filament Yarn (Polyester) |
MT |
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31 |
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Yarn Waste (including derived) & by-products |
MT |
---- |
1580 (B) |
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Chemicals
Division |
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Mancozeb / Indofil M-45 |
MT |
12000 |
12894 |
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Other Agro Formulation |
KL |
Based on 2600 MT of Technical Material |
4096 |
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Speciality Industrial Chemicals |
MT |
9000 |
9373 |
GENERAL
INFORMATION
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No. of Employees : |
1000 |
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Bankers : |
Ø Punjab National Bank Ø
Union Bank of Ø
State Bank of Ø
Bank of Ø Allahabad Bank Ø Karnataka Bank Limited Ø Abu Dhabi Commercial Bank Limited Ø Development Credit Bank Limited Ø Dhanalakshmi Bank Limited Ø Cosmos Co-operative Bank Limited |
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Banking
Relations : |
Satisfactory |
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Auditors : |
Ø P. R. Mehra & Company Chartered Accountants 56, Darya Ganj,
Ø M. M. Billimoria & Company Chartered Accountants 101, Sharda Chambers, Plot No. 15, Vithaldas Thackersey Marg, Mumbai 400 020, |
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Membership : |
Ø
All Ø
Indian Paint Association Ø CHEMEXCIL Ø Indian Crop Protection Association Ø
Pesticides Association of Ø Indian Chemical Manufacturers' Association |
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Associates : |
Ø Modi Alkalies & Chemicals Limited Ø Spark Plugs Company India Limited Ø Ambuja Cement Eastern Limited Ø Modi Rubber Limited Ø Modi Carpets Limited |
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Subsidiaries : |
Ø
Quick Investment ( Ø Good
Investment ( |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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20,000,000 |
Equity Shares |
Rs. 10.00 each |
Rs. 200.000 millions |
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500,000 |
Preference Shares |
Rs. 100.00 each |
Rs. 50.000 millions |
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Total |
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Rs.
250.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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7,838,057 |
Equity Shares |
Rs. 10.00 each |
Rs. 78.381 millions |
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71,792 |
15% Redeemable Convertible Cumulative Preference Shares |
Rs. 100.00 each |
Rs. 7.179 millions |
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Total |
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Rs.
85.560 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 |
85.600 |
85.600 |
85.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
280.800 |
511.900 |
388.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
366.400 |
597.500 |
474.500 |
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LOAN FUNDS |
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1] Secured Loans |
1625.900 |
1583.00 |
1794.100 |
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2] Unsecured Loans |
206.300 |
91.900 |
77.600 |
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TOTAL BORROWING |
1832.200 |
1674.900 |
1871.700 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
2198.600 |
2272.400 |
2346.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1053.200 |
1145.900 |
1291.100 |
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Capital work-in-progress |
0.500 |
18.000 |
3.300 |
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INVESTMENT |
3.500 |
11.400 |
11.400 |
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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 |
946.200
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1100.800 |
631.500 |
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Sundry Debtors |
992.000
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995.700 |
826.800 |
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Cash & Bank Balances |
259.500
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316.800 |
308.600 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
477.400
|
722.700 |
481.500 |
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Total
Current Assets |
2675.100
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3136.000 |
2248.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1487.300
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1907.600 |
1124.200 |
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Provisions |
120.800
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139.200 |
94.300 |
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Total
Current Liabilities |
1608.100
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2046.800 |
1218.500 |
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Net Current Assets |
1067.000
|
1089.200 |
1029.900 |
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MISCELLANEOUS EXPENSES |
74.400 |
7.900 |
10.500 |
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TOTAL |
2198.600 |
2272.400 |
2346.200 |
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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 |
4895.100 |
5489.200 |
4535.000 |
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Other Income |
142.100 |
523.800 |
79.700 |
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Total Income |
5037.200 |
6013.000 |
4614.700 |
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Profit/(Loss) Before Tax |
[222.700] |
169.700 |
41.700 |
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Provision for Taxation |
0.000 |
58.700 |
0.000 |
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Profit/(Loss) After Tax |
[222.700] |
111.000 |
41.700 |
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Earnings in Foreign Currency : |
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Total Earnings |
NA |
684.330 |
554.315 |
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Imports : |
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Total Imports |
NA |
820.706 |
2024.321 |
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Expenditures : |
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Raw Materials
|
2266.300
|
2657.900
|
1896.600
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Excise
Duty |
610.800
|
692.200
|
539.400
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Power
& Fuel Cost |
318.200
|
334.800
|
285.500
|
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Other
Manufacturing Expenses |
362.500
|
471.100
|
379.900
|
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Employee
Cost |
350.100
|
365.500
|
327.000
|
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Selling
and Administration Expenses |
1032.800
|
1006.500
|
802.100
|
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Miscellaneous
Expenses |
19.200
|
28.500
|
23.100
|
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Interest
& Financial Charges |
152.700
|
136.900
|
161.000
|
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Depreciation
|
147.300
|
149.900 |
158.400
|
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Total Expenditure |
5259.900 |
5843.300 |
4573.000 |
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SUMMERIZED RESULTS
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PARTICULARS |
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|
31.03.2007 (Full Year) |
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Sales
Turnover |
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|
2594.900 |
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Other
Income |
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|
85.700 |
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Total
Income |
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|
2680.600 |
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Total
Expenditure |
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|
2744.700 |
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Operating
Profit |
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|
(64.100) |
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Interest |
|
|
111.600 |
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Gross
Profit |
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|
(175.700) |
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Depreciation |
|
|
118.200 |
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Tax |
|
|
4.700 |
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Reported
PAT |
|
|
(300.800) |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
5.27 |
4.61 |
6.05 |
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Long Term Debt Equity
Ratio |
3.15 |
2.79 |
3.70 |
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Current Ratio |
1.15 |
1.15 |
1.11 |
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TURNOVER RATIOS |
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Fixed Assets |
1.42 |
1.58 |
1.32 |
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Inventory |
4.78 |
6.34 |
6.81 |
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Debtors |
4.93 |
6.02 |
6.10 |
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Interest Cover
Ratio |
[0.61] |
2.24 |
1.26 |
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Operating Profit
Margin (%) |
1.12 |
8.32 |
7.96 |
|
Profit Before
Interest and Tax Margin (%) |
[1.89] |
5.59 |
4.47 |
|
Cash Profit
Margin (%) |
[2.00] |
4.75 |
4.41 |
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Adjusted Net
Profit Margin (%) |
[5.01] |
2.02 |
0.92 |
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Return on Capital
Employed (%) |
[4.53] |
14.27 |
9.49 |
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Return on Net
Worth (%) |
[75.38] |
29.41 |
14.01 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.71.10 |
|
Low |
Rs.71.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Modipon was established in 1965 as a joint venture between
the Modi group and Rohm & Haas (R&H),
Modipon has entered into a technical collaboration with NOY
It undertook an expansion programme of its fibres division which will increase
the production capacity of synthetic filament yarn by 7500 TPA. The chemicals
division is carrying on a debottlenecking and technological upgradation
programme which will increase the capacity to manufacture mancozeb fungicide at
its Thane plant while controlling effluent and pollution levels at the
plant.
The Fibres Division has become the first manufacturing unit in synthetic
Filament Yarn industry to get ISO 9001:2000 certifications during 2000-01.
OPERATIONS
During the year, the Sales of Nylon Filament Yarn (NFY) was Rs.1339.354
Millions as against Rs.1909.313 Millions in the previous year. The Sales and
Production Volume of NFY were 6,596 M.Tons and 6,215 M.Tons as against 9,360
M.Tons and 9,321 M.Tons respectively in the previous year. The reduction in
Sales and Production was mainly due to negative contribution in commodity
products because of high Raw Material cost, high Power cost and dumping of NFY
by some Asian Countries. Because of lower margin (due to dumping of NFY and
high Raw Material cost) and higher working capital requirements (due to higher
Raw Material cost and higher Power cost) the Division could not fully utilize
its production capacity. Driven by high Crude prices, price of Caprolactam (Raw
Material) remained at a high level. Also, due to the same reasons, the price of
FIFO (Fuel) increased substantially due to which Captive Power cost (Rs. /Kwh)
has increased by 30%.
The Union Budget 2006-07 did not bring much relief to the NFY Industry. The
Government reduced Excise Duty on NFY from 16% to 8% without reducing the
Excise Duty on Caprolactam which is today at 16%. Though, subsequently Excise
Duty on Intermediates of Polyester Yarn (PTA & DMT) and Acrylic Yarn
(Acrylonitrile) has been reduced from 16% to 8%, Excise Duty on Caprolactam was
not reduced. This has resulted in accumulation of CENVAT in the NFY Industry, which
is blocking precious working capital. Industry has made representations to the
Government about it and it is expected that the anomaly of inverted Duty
structure in Nylon will be corrected soon.
Though the dumping of NFY from Asian Countries had reduced from the level of
last year, it was still very significant during the year. Major success was
achieved by the Industry in countering the dumping when the Government imposed
provisional Anti-dumping Duty in March, 2006 and definitive Anti-dumping Duty
in August, 2006 on
EXPORTS
The Exports of the Fibres Division for the year was Rs.58.800 Millions as
against Rs.33.200 Millions in the previous year resulting in a growth of 77%.
The Export strategy of the Division is to continue the Exports of only
Value-added products. The Exports of the Chemicals Division for the year was
Rs.509.800 Millions as against Rs.690.900 Millions in the previous year. The
Division has taken steps to register its Products in many more Countries and is
expected that the major part of the improved capacity for the manufacture of
Mancozeb will be exported in future.
MODERNISATION
The Fibres Division continued its thrust on Conservation of Energy. Many
successful measures have been taken at the Plant level leading to saving of
Energy.
The Chemicals Division is continually pursuing its efforts to achieve
Technological Innovations as well as development/modifications of its Products
for Customer satisfaction in the context of global competition for its Products
in the Country and elsewhere in the World. Several process automation projects
were completed optimizing usage of Fuel, Electricity and Water.
FIXED DEPOSITS
The Company has not made any default in repayment of
Deposits or part thereof or any Interest thereupon (including for small
Depositors within the meaning of Section 58AA of the Companies Act, 1956). The
aggregate amount of Fixed Deposits as on 31st March, 2006 was Rs.79.314
Millions, out of which Rs.3.119 Millions relating to 21 Depositors remained
Unclaimed as on that date. Out of this, Deposit of Rs.1.000 Millions relating
to 2 Depositors has since been repaid/transferred to Investors Education and
Protection Fund.
RESTRUCTURING
OF THE BUSINESS OF THE COMPANY
The Business Environment in the Country is becoming increasingly
competitive and specialized. With the intent to provide focus on the two lines
of the Business of the Company-(i) Fibres Business and (ii) Chemicals Business
and to enhance Shareholders' Values, the Board of Directors has decided to
segregate the existing Business into two separate Entities effective from 1st
October, 2006. Keeping this in view, the Board of Directors approved the
Restructuring Proposal envisaging the
A Notice together with the Explanatory Statement and Ballot Paper under Section
192A(2) of the Companies Act, 1956 read with Rule 4 of the Companies (Passing
of a Resolution by Postal Ballot) Rules, 2001 is being sent separately to all
the Shareholders seeking their consent under Section 293(1)(a) of the Companies
Act, 1956 to sale and transfer or otherwise disposal of the 'ICC Division' as a
going concern on a slump sale basis with effect from 1st October, 2006 at a
Value of Rs.1246.6 Millions subject to the condition that part of consideration
being applied for allotment and distribution by IOIL directly to the Equity
Shareholders of the Company in the ratio of 3 Equity Shares of [OIL for every 2
Equity Shares held in the Company.
MANAGEMENT
DISCUSSION AND ANALYSIS
FIBRES DIVISION
Overview
Synthetic Fibres have continued their increasing share in the Textile
fibre-mix. Government has continued its fiscal reforms in the Textile Industry
though some disparities still remain to be addressed. Demand for Indian
Textiles is increasing due to removal of WTO Textile Quota restrictions and
restriction on Textile Exports by
Industry Structure and Development
Nylon Filament Yarn (NFY) Industry (Textile end-use) has been experiencing high
growth in
Dumping was a major threat to the Industry for the last few years. However, now
with Provisional anti-dumping duty in March, 2006 and definitive anti-dumping
duty in August, 2006 on
The Union Budget 2006-07 has created an anomaly of inverted Duty structure in
Nylon. While Excise Duty on NFY was reduced from 16% to 8%, Excise Duty on
Caprolactam remains at 16%. Though this anomaly has been corrected for Polyester
and Acrylic industry, correction is yet to be done in case of Nylon Industry.
This is blocking working capital for the Nylon Industry (because of unutilized
CENVAT) and thus puts this Industry at a disadvantage vis-a-vis Polyester and
Acrylic industries. Also, in the Current Budget 4% SAD was imposed on Imports,
which is cenvatable against Excise Duty. Since the Industry is having
unutilized CENVAT, the Duty paid against SAD is also adding to the unutilized
CENVAT For both the above cases Industry has represented to Government
requesting them to reduce Excise Duty on Caprolactam from 16% to 8% and remove
SAD or make it cenvatable against Sales Tax.
Opportunities and Threats
The Industry expects that NFY (in Textile) will grow at 15% for the next 3
years based on the factors given below:
1. Increasing use of Nylon in Blends with Cotton, Acrylic, Viscose and
Lycra.
2. Use of Nylon with Dyed Polyester where Nylon is Pot dyed in hank form.
3. Increasing popularity of Swim wears and Sports wears.
4. Increasing consumption of Nylon in Jan covering.
5. Increasing consumption of Nylon in Intimate wears.
6. Increasing use of Embroidery in Saree.
7. Growth of Retailing and Branding.
Inter-fibre competition (mainly with Polyester and PP) can dent the Nylon
market unless Nylon Industry takes pro-active steps. There is strong need to
promote Nylon in the value-chain as well as among the Consumers. High Raw
Material and Fuel Cost is eroding the profitability of the Industry.
Outlook
As discussed earlier, the Industry foresees a high growth of NFY at 15% per
annum in the next 3 years. The NFY (Textile) Industry plans to expand in near
future and can thus consolidate its position. Risks and Concerns Though it is
easier for Caprolactam producers to pass on the rise in Benzene (its input)
price to NFY producers, the same does not hold true for the latter. The way to
counter this is by increasing new and value-added products in the product
portfolio. MFC is well placed because of its strength in R&D.
Non-imposition of VAT in U. P. has resulted into higher cost for the Division.
This puts the Division at a disadvantage vis-a-vis its competitors who are
located in Gujarat and
CHEMICALS DIVISION
AGRO CHEMICALS
Industry Structure and Development
The Crop Protection is becoming more relevant as the available land is limited
and food demand increasing with the explosion in population. To save the Crop produce
from various losses caused by pests and diseases is of utmost importance. With
the changing scenario i.e. new product development, release of new crop
varieties is however making a shift in the Plant Protection measures. Cotton
and Rice are now dominating and taking share of more than 50% in Agro Chemicals
Industry. The Division is well equipped and has a commanding position of these
crops. So while Industry struggles to maintain Sales, the Division is showing
growth with right products in the range and the right strategies to promote
them. Introduction of BT Cotton has totally shifted attention from the
Insecticides market, however the Division's new launch (an Insect Growth
Regulator) is making waves as it is effective against the new insect pest (Spodoptera)
damaging the BT Cotton.
Opportunities and Threats
The Indian Agro Chemicals Industry is dominated by the Multinationals and few
Indian players. They have in their armory good range of specialty products and
strength of field work. Other International Companies are also looking for
partnership for the launch of new products in the Indian Market. The Division
has attracted their attention with strength of the field force, distribution
and the successful experience of launching highly specialized expensive
products. During the past year, Industry Sales have actually dipped by 13% over
the previous year, due to adverse climate, change pest scenario and change in
cropping pattern. The Division was however one of the few who have maintained
Sales.
Outlook
The Division is consolidating its position by introducing newer products and
their combinations to have a long lasting effect. Novel ways of promotion and
special developmental project identified will not only ensure that the Division
achieves its plans, but actually surpasses them once again. Keeping abreast
with latest trends, the Division is also strengthening its presence in Organic
and Bio Products.
Export prospects are also bright. The Division is only one from
SPECIALITY AND PERFORMANCE CHEMICALS
The Speciality and Performance Chemicals Division which caters to the
requirements of Leather, Textile, Coatings, Construction and PVC Processing
industries, witnessed a drop of 20% in quantity terms and a drop of 8% in value
terms compared to the year 2004-05. This drop in terms of value was due to a
continuous fall in the Raw Material prices which had to be passed on to the
market. In the year 2005-06, the Division shed several under performing product
portfolios and hence a drop in volume was intentionally taken to align the
product range in terms of achieving sustainable growth volumes where margins
are reasonable.
The Leather Chemicals business witnessed stagnating conditions due to non
availability of raw hides and lower competitiveness of the Indian Exporter in
the World Market as a result of the increasing Raw Material prices.
In the Textile sector, the capacity utilization was low, resulting in a drop in
volumes as well as Net Sales value.
The Coatings business registered a decline in the Sales in both value and
volume as they realigned Customer and Product groups.
The PVC additives business witnessed sharp upsurge in demand and saw a growth
of 65% in terms of volume and 85% in value terms. This was partly due to
increased production of PVC processing plants and our competitiveness due to
strengthening of US$.
Industry Structure and Development
LEATHER
The Leather Industry is spread throughout
Government of India has decided to focus sharply on the Export of Leather and
Leather Goods which is expected to fetch some 4 Billion US$ by 2009/2010
compared to the Exports of 2 Billion US$ in the current year.
TEXTILE
The Textile Industry which contributes some 8% to
COATINGS
The Indian Paint Industry is registering a steady growth of some 7% to 8% over
the last few years. With the growth of Automobile, Housing, Infrastructure, the
Industry is expected to retain the momentum. The Paint Industry is
characterized by few Majors and a Horde of small scale units, numbering over
2000.
PVC
The PVC Processing Industry is likely to sustain momentum with the thrust on
Infrastructure, Telecommunication, need for Water management and growing
packaging culture. The enhancement of PVC resins capacity in
CONSTRUCTION
The Construction sector which is estimated to be some Rs.2300000 Millions is
growing at the rate of 7% to 8%. The focus on Infrastructures and Housing will
ensure a handsome growth in the coming years.
Business Outlook and Strategy
The outlook for Speciality Chemicals is promising despite the presence of a
large number of players. The low per capita consumption in
Opportunities
All the Strategic Business Units of Speciality and Performance Chemicals
Division offer opportunities for Market expansion and new product
introductions. The Leather sector is poised for rapid Exports, the dismantling
of Quota Regime in Textiles, the increased stress on Infrastructure and
Housing, and the growth of Packaging Industry will be key prime movers for the
growth.
Exports in particular will offer the biggest growth opportunity. Positioning
the Division as solution providers will go a long way in exploiting the Market
potential.
The company is in trade terms with:
Ø
A B C Corporation
Ø
A I C Chemicals
Ø
Agarwal Containers
Ø
R K Corporation
Ø
Purab Printers
Ø
Asiatic Chemicals
Ø
Atcon Engg.
Ø
Namdev Silicates
Ø
Laxmi Sales
Ø
Nova Plast
Ø
Versatile Chem
Ø
S B Enterprises
The company's fixed assets of important value include
goodwill, land (freehold and leasehold), factory buildings, non-factory
buildings, plant and machinery, electric installations, furniture &
fixtures, live stock, vehicles, office & other equipments, library and
leased out assets.
March 1962 saw the genesis of Indofil Chemicals
Company at Mumbai through a Joint Venture. Indofil's growth gained momentum
just three years later with the commissioning of a manufacturing plant at Thane
(near Mumbai). With a present manpower compliment of over 375 well-trained,
disciplined and motivated go-getting professionals, the future of Indofil is
well secured.
The Company has state-of-the-art manufacturing
facilities, recognized in-house R&D laboratory recognized by the Department
of Science & Technology, a large domestic distribution base and a
recognized Export House status conferred by DGFT.
The Company has already established it’s reputation
in the field of agrochemicals, Construction, leather, textiles, paints, paper
adhesives, petroleum industry across the world through new products,
Enterprised-wide Resource Planning, customized packing and speedily delivery.
QUALITY
STATEMENT
In pursuit of its mission to achieve consistent
customer satisfaction, Indofil has established and implemented a Quality
Management System as per ISO-9001 certified by Det Norske Veritas. Indofil is
among the few companies in the Agrochemical Business Sector in
As an extension of its pursuit of excellence, Indofil has embarked on
establishing Environment Management System as per ISO-14001, which is presently
being adopted.
INDOFIL
VALUES
Customers
Anticipate and understand our customer including distributor needs, provide
quality products and best possible service.
Innovation
Stimulate people to seek and seize opportunities to create new businesses and
new approaches to existing business.
People
"Indofil fosters a work culture that allows full realization of an individual's
potential and encourages team spirit, participation and innovation."
Social and Moral Responsibility
Indofil is committed to be a good corporate citizen
as perceived by people in and around our working environment.
Indofil launches Grip-CC
Grip-CC is a plant growth retardant having
chlormequat chloride as active ingredient.
Grip-CC is used in crops like grapes, cotton, chilli
and other fruit vegetable crops for restricting the vegetative phase and
increasing reproductive growth of plants.
MODIPON’s DIVISIONS
MODIPON FIBRES COMPANY (called
as the FIBRES DIVISION)
An ISO 9001: 2000 Company
Manufacturing
-Synthetic Filament Yarns (Nylon and Polyester)
Works and
Hapur Road
Tel. : 91-1232-242201 to 242209
Fax : 91-1232-242084
Website : http://www.modipon.com
INDOFIL CHEMICALS COMPANY
(called as the CHEMICALS DIVISION)
An ISO 9001 & ISO 14001
Company
Manufacturing
-Agricultural Chemicals
-Speciality & Performance Chemicals
-Construction Chemicals
Works :
Off S. V. Road, Azad Nagar, Manpada, Sandoz Baug P.O., Thane (West), Thane 400 607, Maharashtra
Tel. : 91-22-55999100-01
Fax : 91-22-25898357/9
Office
Nirlon House, 3rd Floor,
Tel. : 91-22-24960000/56637373
Fax : 91-22-24935667
Website : http://www.indofilcc.com
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.41.57 |
|
|
1 |
Rs.82.14 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|