MIRA
INFORM REPORT
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Report Date : |
27.08.2007 |
IDENTIFICATION DETAILS
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Name : |
DEMOSHA CHEMICALS PRIVATE LIMITED |
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Registered Office : |
105-A, Mittal Towers, 210, Nariman Point, Mumbai – 400
021, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
27.10.1970 |
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Com. Reg. No.: |
14859 |
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CIN No.: [Company
Identification No.] |
U24110MH1970PTC014859 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD09824D |
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PAN No.: [Permanent
Account No.] |
AAACD3822A |
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Legal Form : |
A Closely held Public Limited Liability Company. |
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Line of Business : |
Manufacturing and |
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 202908 |
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Status : |
Satisfactory |
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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 satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually 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 / Administrative Office : |
105-A, Mittal Towers, 210, Nariman Point, Mumbai – 400
021, |
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Tel. No.: |
91-22-282 3588 / 22852189 / 287 2218 |
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Fax No.: |
91-22-204 5997 |
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E-Mail : |
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Website : |
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Plant : 82: |
GIDC Industrial Area, Post Gundlav, Valsad – 396035, |
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Tel. No.: |
91-2632-237271 / 2 / 3 |
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Fax No.: |
91-2632-237277 |
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E-Mail : |
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Factory 1: |
Ř
82, GIDC Industrial Estate, Gundlav 396 005, Tel. No. 91-2632-82 20474 Fax No. 91-2632-82 20657 |
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Factory 2: |
Ř
132-136, GIDC Industrial Area, Post – Gundlav,
District Bulsar, |
DIRECTORS
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Name : |
Mr. Pradip H. Khimani |
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Designation : |
Director |
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Name : |
Mr. Gautam Bhogilal Shah |
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Designation : |
Director |
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Address : |
Panchasar, 76 Netaji Subhash Marg, Mumbai - 400 020, |
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Date of Birth/Age : |
08.01.1946 |
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Date of Appointment : |
01.03.1995 |
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Name : |
Mr. Vijay Parikh |
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Designation : |
Director |
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Address : |
39, Everest, |
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Date of Birth/Age : |
09.09.1955 |
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Date of Appointment : |
01.03.1995 |
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Name : |
Mr. Chinubhai Shah |
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Designation : |
Director |
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Address : |
903,
Chandanbala, R. R. Thakkar Marg,
Mumbai – 400 006, |
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Date of Birth/Age : |
13.12.1937 |
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Date of Appointment : |
01.05.1997 |
KEY EXECUTIVES
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Name : |
Mr. Gautam B Shah |
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Designation : |
Chief Executive officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Monish Shankerlal Parikh |
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4803 |
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Mr. Mahendra Shah |
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10 |
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Mr. Jayantilal S Shah |
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4410 |
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Mr. Chinubhai S Shah |
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3816 |
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Mr. Gautam B Shah |
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10692 |
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Mrs. Chandrakanta B Shah |
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1200 |
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Mr. Ajay M Parikh |
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3900 |
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Mr. Vijay Parikh |
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4584 |
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Mrs. Geeta G Shah |
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9750 |
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Mr. Nilay G Shah |
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10650 |
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Mr. Gautam B Shah ( HUF) |
|
5250 |
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Mr. Bhogilal Manilal Shah (HUF) |
|
5350 |
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M/s. Product and Produce |
|
240 |
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Mrs. Sheelaben C Shah |
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2250 |
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Mrs. Pushpa I Mehta |
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2000 |
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Mr. Monish Shankerlal Parikh ( HUF) |
|
4241 |
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Mrs. Indumati Monish Parikh |
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3300 |
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Mrs. Heena V Parikh |
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3950 |
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Ms. Sonal T Bhuta |
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1000 |
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1300 |
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Mr. Kamlesh M Shah |
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4156 |
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Mr. Sunil M Shah |
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4156 |
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Mrs. Bharatiben J Shah |
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3476 |
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Mr. Alay J Shah |
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3100 |
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Mr. Ashish C Shah |
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4650 |
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Master Rikhav V Parikh |
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1300 |
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Mrs. Kanchanben K Parikh |
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325 |
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Mrs. Ramaben Kapadi |
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325 |
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Mrs. Niruben Parikh |
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325 |
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Mrs. Ilaben Kothari |
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325 |
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Mrs. Bakufa Bhatt |
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325 |
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Mrs. Harshita Parikh |
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1200 |
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Miss Vama G Shah |
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9000 |
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Mr. Vijay Parikh ( HUF0 |
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1215 |
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Master Hardik Parikh |
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1875 |
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Mr. Ajay Parikh |
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3500 |
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Mr. Gautam Dey |
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15 |
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Mrs. Ruma Rudra |
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15 |
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Miss Jhanvi A Parikh |
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1875 |
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Miss Nipa M Shah |
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600 |
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Miss Ami C Shah |
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607 |
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Mr. Jiten J Shah |
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3000 |
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Mr. Kamlesh M Shah ( HUF) |
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450 |
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Mr. Sunil M Shah ( HUF) |
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450 |
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Miss Shikha S Shah |
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1395 |
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Miss Shreya S Shah |
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1395 |
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Mudrika Finance and Investments Private Limited |
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3451 |
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Master Karan K Shah |
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1290 |
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Master Dremal K Shah |
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1287 |
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Mr. Nilay G Shah ( HUF) |
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600 |
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Master Manav N Shah |
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1500 |
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Mrs. Nehal N Shah |
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1500 |
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Mr. Chinubhai S Shah (HUF) |
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2450 |
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Mr. Jayantilal S Shah ( HUF) |
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67 |
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Miss Sneha Shah |
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160 |
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Miss Nidhi Shah |
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160 |
Equity Share Break – up ( Percentage of
Total Equity ):
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Sr. No. |
Category |
Percentage |
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1 |
Directors or relatives of directors |
97.44 |
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2 |
Bodies Corporate |
2.56 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
250 |
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Bankers : |
Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
R P Shah and Company Chartered Accountants |
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Address : |
Office No.35, 3rd Floor, Tardeo, AC Market, Mumbai - 400
034, |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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300000 |
Equity Shares |
Rs.10/-each |
Rs.3.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
144000 |
Equity shares |
Rs.10/- each |
Rs.1.440
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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14.400 |
14.400 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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36.327 |
31.525 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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50.727 |
45.925 |
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LOAN FUNDS |
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1] Secured Loans |
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132.528 |
102.433 |
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2] Unsecured Loans |
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98.601 |
79.817 |
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TOTAL BORROWING |
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231.129 |
182.250 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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281.856 |
228.175 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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54.687 |
59.205 |
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Capital work-in-progress |
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15.880 |
10.710 |
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INVESTMENT |
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0.050 |
0.051 |
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DEFERREX TAX ASSETS |
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3.493 |
2.941 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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89.502 |
90.045 |
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Sundry Debtors |
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246.336 |
165.929 |
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Cash & Bank Balances |
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10.097 |
10.216 |
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Other Current Assets |
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1.370 |
1.509 |
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Loans & Advances |
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6.885 |
5.607 |
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Total
Current Assets |
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354.190 |
273.306 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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145.530 |
117.394 |
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Provisions |
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0.914 |
0.644 |
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Total
Current Liabilities |
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146.444 |
118.038 |
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Net Current Assets |
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207.746 |
155.268 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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281.856 |
228.175 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt Equity Ratio (Total Liability/Networth) |
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428.300 |
6.53 |
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Current Ratio (Current Asset/Current Liability) |
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2.41 |
2.31 |
LOCAL AGENCY FURTHER INFORMATION
Fixed
Assets:
Land
Building
Plant and Machinery
Equipments, Electric Installation
Furniture and Fixtures
Vehicles.
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Name of the
company |
DEMOSHA CHEMICALS PRIVATE LIMITED |
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Presented
By |
Mr. Vijay M Parikh, Director |
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1) Date and description
of instrument creating the change |
25th
October 1999 Memorandum of Entry for Equitable Mortgage made by the company
in favour of BanK of Baroda |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Working Capital Facilities
Rs.121.000 millions Bank of Baroda has agreed to grant and/or to continue to
grant banking facilities or accodomodation to the borrower by way of.
and the repayment
of all monies including principal sums, interest, interest tax, additional
interest, further interest, penal interest, commission, costs, charge, and
expenses etc. payable under or in respect of such facilities have been
secured / agreed to be secured by various agreements and documents executed
by the Company from time to time in favour of the Bank. |
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3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
The above amount
be secured by way of mortgage by deposit of the title deeds documents
writings by constructive delivery as listed out in part A and B of the first
Schedule hereunder written |
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4) Gist of the
terms and conditions and extent and operation of the charge. |
The company delivered to and deposited with the title deed documents writings ( hereinafter referred to as the said title deeds by constructive delivery as listed out in part A and Part B of the First Schedule hereunder written with the Bank for the purpose with the intent to create a security thereof by way of mortgage by deposit of title deeds for securing various credit facilities financial assistance and accommodation granted and provided by the bank to the company aggregating to Rs.121.000 millions as under:
Together with agreed rate of interest, penal interest, additional interest, liquidated damages, prima, costs charges, expenses and all monies due by the company to the Bank in respect of the aforesaid credit facilities. |
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5) Name and
Address and description of the person entitled to the charge. |
Bank of |
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6) Date and brief description of instrument
modifying the charge |
1st Modification Supplement
Memorandum of Deposit of title Deeds executed on 14th December
2001 by Demosha Chemicals Private Limited in favour of Bank of Baroda, Bulsar
Main Branch Bulsar for extension of equitable Mortgage to secure limits. 2nd Modification Supplement
Memorandum of entry dated 22nd June 2004 by Demosha Chemicals
Private Limited in favour of Bank of Baroda, Bulsar Main Branch, Bulsar for
extension of Equitable Mortgage to secure limits. |
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7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
1st Modification Bank of Baroda shall
also secured for the increase of credit facilities of Rs.32.000 millions i.e.
total Rs. 153.000 millions as follows:
together with
agreed rate of interest, penal interest additional interest, liquidated damages,
prima, costs charges, expenses and all monies due by the company to the Bank
in respect of the aforesaid credit facilities. 2nd Modification Bank of Baroda
shall also be secured for the increase of credit facilities of R.12.000 millions
i.e. total Rs.165.000 millions as follows:
together with agreed
rate of interest, penal interest additional interest, liquidated damages,
prima, costs charges, expenses and all monies due by the company to the Bank
in respect of the aforesaid credit facilities. |
WEBSITE DETAILS:
Right from its conception in 1971 Demosha Chemicals Limited has started
its manufacturing activities at its plant at Gundlav, Valsad, India which is
situated some 200 K. M. North of Mumbai city. Today they are one of the reputed
and known manufacturer of a few Inorganic Chemicals like Hydrosulphite,
Sulphoxylate, and zinc based compounds. They have 30 workers in various
departments of the plant including Research and Development and Quantity
Control Lab. Further, their Corporate Office is located at Mumbai where some 50
qualified staff members are operating in various departments like procurement,
marketing, export, finance, technical development etc.
Company is managed by three fulltime directors and qualified
professional executives. Managing Director is having technical background with
Master of Science degree in Chemical Engineering from
Company is part of a group having total Sales of more than Rs. One
Billion in chemicals only. Chemicals are being manufactured at four different
locations and are widely used in pharmaceutical, textile, rubber, cattle feed,
sugar, paper, ceramics, dye, food and Agriculture, etc.
Demosha Chemicals has made
remarkable progress over the years in enlarging its sales volume and
introducing number of new products. What began as a small manufacturing unit in
Sodium Hydrosulphite with a total installed capacity of 400 mt per annum in
1971 has growth to the total installed capacity of more than 25000 mt of all
the products as on 1998.
Export
Export activity is gathering fast momentum and they are exporting to Europe,
Latin America,
Through their consolidated efforts of all departments they have achieved
excellent growth in Exports turn-over year after year. To serve their customers
better, they are trying to create a network of Agents and Depots all over the
world. This way they feel that their clients will get faster deliveries without
maintaining big inventories at their factories.
They
exports their products with proper care in transit worthy containers and in the
manner to honour each and every regulation prescirbed by the Global Authority
for the shipment of hazardous cargo.
Environmental Protection and Safe
Operations:
They
produce chemicals, however complicated, with due respect to their environment.
They have invested substantially in Effluent Treatment Plant and in Air
Pollution Prevention Equipments to ensure that natural resources used by them
are properly cleaned before their discharge.
They
do produce and also use hazardous chemicals which if not handled properly can
cause extensive damage to the society at large. They must have handled millions
of pounds of chemicals without any significant mishape. Although they have
proven record of safe operations for last 25 years, they are not at all
complacent when it comes to the safety of their employee or the people around
the world.
|
Product |
Annual
Capacity MT |
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SODIUM
HYDROSULPHITE (ZINC PROCESS) |
7000 |
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SODIUM
FORMALDEHYDE SULPHOXYLATE |
4000 |
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SODIUM
FORMALDEHYDE BISULPHITE |
1000 |
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ZINC FORMALDEHYDE
SULPHOXYLATE |
1000 |
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ZINC OXIDE |
5000 |
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ZINC SULPHATE |
3000 |
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.41.12 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.56.03 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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. |
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 |
|