MIRA
INFORM REPORT
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Report Date : |
30.08.2007 |
IDENTIFICATION DETAILS
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Name : |
MECHEMCO INDUSTRIES |
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Registered Office : |
27, Kewal Industrial Estate, Senapati Bapat Marg, Lower
Parel, Mumbai – 400 013, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1976 |
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Legal Form : |
Sole Proprietory concern |
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Line of Business : |
Manufacture of unsaturated Polyester and Resins. |
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 165356 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed concern having satisfactory
track. Proprietor is reported as experienced and respectable businessman. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
27, Kewal Industrial Estate, Senapati Bapat Marg, Lower
Parel, Mumbai – 400 013, |
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Tel. No.: |
91-22-24951799 / 24940266 |
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Fax No.: |
91-22-24945907 |
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E-Mail : |
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Website : |
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Area : |
1000 Sq. ft |
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Location : |
Owned |
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Factory 1 : |
A-34, MIDC Estate, Dombivli (East) – 421 204, Thane, |
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Tel. No.: |
91-251-2471927/2471998 |
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Fax No.: |
91-251-2471856 |
SOLE PROPRIETOR
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Name : |
Mr. Pradeep A. Thakkar |
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Designation : |
Proprietor |
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Date of Birth/Age : |
56 Years |
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Qualification : |
B. Tech (Chemical) |
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Experience : |
36 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacture of unsaturated Polyester and Resins. |
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Products : |
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Brand Names : |
‘ MECHSTER’ |
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Exports : |
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Countries : |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
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Terms : |
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Selling : |
Contract, Credit (30 days) or Cash or L/C terms. |
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Purchasing : |
Contract, Credit (30 days), Cash or L/C terms |
GENERAL INFORMATION
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Suppliers : |
³
³
DW Chemicals, ³
ARCO, ³
Mc Dowel & Company Limited, ³ Manali Petrochemicals Limited, Chennai, Tamilnadu ³
Thirumalai Chemicals Limited, Mumbai, |
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Customers : |
Manufacturers, wholesalers and Retailers ³
AL-Amin, ³ Essel World, Mumbai ³ Rawji Industries, Sion, Mumbai |
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No. of Employees : |
24 |
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Bankers : |
Bank of Maharashtra, |
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Facilities : |
The concern enjoys facility of Rs.15.000 millions from it’s banker |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Karia & Shah Chartered Accountants |
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Associates/Subsidiaries : |
n Metrix Polymers n Dealers in Fibreglass Products n Annual Turnover – Rs.30.000 millions (approximately) n National Products n Dealers in Polyester Resins n Annual Turnover Rs.2.000 millions (approximately) n Network Polymers (Private) Limited n New Company n Manufacturers of unsaturated polyester and resins. n Importer and Dealers of Fibre Glass Products n Mechcmco Resing Private Limited n New Company |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.41.339 millions |
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Borrowed : |
-- |
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Total : |
Rs.41.339 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES
OF FUNDS |
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31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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41.339 |
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2] Share Application Money |
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0.018 |
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3] Reserves & Surplus |
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0.323 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH
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41.680 |
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LOAN FUNDS |
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1] Secured Loans |
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18.389 |
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2] Unsecured Loans |
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3.929 |
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TOTAL BORROWING
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22.318 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL
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63.998 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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5.017 |
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Capital work-in-progress
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0.000 |
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INVESTMENT
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0.783 |
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DEFERREX TAX ASSETS
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0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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22.433 |
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Sundry Debtors
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68.195 |
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Cash & Bank Balances
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1.822 |
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Other Current Assets
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0.900 |
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Loans & Advances
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23.307 |
Total Current Assets
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116.657 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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53.896 |
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Provisions
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4.563 |
Total Current Liabilities
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58.459 |
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Net Current Assets
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58.198 |
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MISCELLANEOUS EXPENSES
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0.000 |
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TOTAL
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63.998 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover (including other income) |
350.000 |
300.000 |
146.934 |
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Profit/(Loss) Before Tax |
NA |
NA |
8.945 |
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Provision for Taxation |
NA |
NA |
- |
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Profit/(Loss) After Tax |
NA |
NA |
8.945 |
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Export Value |
NA |
NA |
99.170 |
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Import Value |
NA |
NA |
18.736 |
Expected Sales Turnover (2008): Rs.500.000 millions
KEY RATIOS
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PARTICULARS |
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31.03.2005 |
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PAT / Total Income |
(%) |
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6.08 |
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Net Profit Margin (PBT/Sales) |
(%) |
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6.08 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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7.35 |
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Return on Investment (ROI) (PBT/Networth) |
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0.21 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.93 |
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Current Ratio (Current Asset/Current Liability) |
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1.99 |
LOCAL AGENCY FURTHER INFORMATION
As per Website Details:
Company
Details:
Subject is a Technology Driven company with
a mission of "Developing and implementing new technology to contribute
towards rapid growth of FRP industry". As a result, Subject is now a
leading manufacturer of Unsaturated Polyester Resin – with the brand name of
Mechster Resins in
The
manufacturing units of Subject offer over 65 different grades of Unsaturated
Polyester Resins, Vinyl Ester Resins, Specialty Resins and Gel Coats to satisfy
the need of entire range of FRP and Casting Industry with customer base of more
than 200 distributed all over India. Moreover, Mechster Resins are also
regularly exported to
Subject
is very proud for complete in-house development of all its resin products
manufactured. R & D and Technical Service Team of Subject are the backbone
of the organization.
The
R & D team has always been successful in tailoring the resins to suit the
specific needs of customers' end applications. There is also a continuous
collaboration with
Technical
Services Department of Subject is always ready to provide the customer support
services which include optimization of material formulations, design of the
product and the performance evaluation as well as the approval process. These
services are provided by reaching out at site as well as in our own premises.
By
way of close coordination between R & D Department, Technical Services
Department and Production Department, Subject has been able to put together
very good quality program in practice which is implemented very religiously by
Quality Control and Quality Assurance Department. Highly trained and qualified
staff is employed with adequate facility to monitor and ensure the quality and
consistency of UP Resin manufactured at both the production units.
Subejct
has been able to satisfy the total requirements of few of our local customers
who had been advised by their international collaborators to use specific brand
name resins having very stringent quality parameters in their manufacturing and
fabrication processes. This was done by matching the quality and performance
standards of specific brand resins. These resins were tested by the
international collaborators at their own facilities. This could be achieved due
to availability of in-depth knowledge and understanding of the resin chemistry
and processing know-how with the brain bank of Mechemco Industries. Subejct has
also been distributing the Fibre Glass for past ten years in entire western
Subject
has been actively participating in the activities of All India Reinforced
Plastics Manufacturers' Association (AIRPMA) to promote the FRP products. This
also involved organizing technical seminars and exhibitions in various part of
the country. Subject brain bank always contributed the technical presentation
as well as proposed line of action for the FRP market growth in
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.41.24 |
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1 |
Rs.82.55 |
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Euro |
1 |
Rs.56.06 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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 |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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46 |
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
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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