MIRA
INFORM REPORT
|
Report Date : |
15-12-2007 |
IDENTIFICATION
DETAILS
|
Name : |
TRANSPEK INDUSTRY
LIMITED |
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Registered Office : |
6th
Floor, Marble Arch, Race Course Circle, Vadodara – 390007, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
06.10.1965 |
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Com. Reg. No.: |
04-1943 |
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CIN No.: [Company
Identification No.] |
U23205GJ1965PLC001343 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDT00491B |
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PAN No.: [Permanent
Account No.] |
AAACT8639B |
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Legal Form : |
A public limited
liability company. The company's shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing of Sulphoxylate,
Chlorinated Compounds, Rubber Chemicals & Related Chemicals, So3/Oleum,
Oil Field & Related Chemicals and Other Zinc Base Chemicals |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 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 a well
– established company having fine track. Trade relations are fair. General financial
position is satisfactory. Payments are usually correct and as per
commitments. The company can
be considered good for any normal business dealings. It can be
regarded as a promising business partner in a medium to long – run. |
LOCATIONS
|
Registered
Office/Factory : |
6th Floor, Marble Arch, Race Course Circle, Vadodara –
300007, Gujarat |
|
Tel. No.: |
91-265-2335444 [ 3 lines], 2334141 / 2358236 / 2342262 / 2335757 |
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Fax No.: |
91-265-2335758 |
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E-Mail : |
transpek@wilnetonline.net
, info@transpek.com, inquiry@transpek.com |
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Website : |
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Factory 1 : |
Ekalbara 391 440, Taluka Padra, District Vadodara, Gujarat, India |
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Tel. No.: |
91-2662-222318 / 222309 / 221276-77 / 222287 / 222289 |
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Fax No.: |
91 2662 -223439 |
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E-Mail : |
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Website : |
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European Office |
112 Red Lion Lane,
Shooters Hill, Woolwich, London SE18 4LE Tel : +44-7843565118 |
DIRECTORS
|
Name : |
Mr. A. G. Shroff |
|
Designation : |
Managing Director |
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Date of Birth/Age : |
59 years |
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Qualification : |
S. S. C. |
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Experience : |
39 years |
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Date of Appointment : |
01.12.1981 |
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Previous
Employment |
Excel Industries Limited |
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|
Name : |
Mr. Ashwin C.
Shroff |
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Designation : |
Chairman |
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Date of Birth/Age : |
22.01.1945 |
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Qualification : |
Science Gradate |
|
Date of Appointment : |
02.05.1980 |
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Brief Resume : |
Shri A. C.
Shroff is the Chairman and Managing Director of Excel Industries Ltd. He is a
Science graduate and started his career in 1965 as a young trainee and has
grown to spearhead Excel Industries Ltd. Along these crucial years of growth,
both Excel Industries Ltd. and Mr. Shroff have emerged stronger
revolutionizing the agrochemical market scenario in India. He was the
President of Indian Chemical
Manufacturers Association during 1996-1998. He is also the Chairman of
Roha Industries Association. He has been a leading spokesperson of chemical
industry and has represented various issues of the industry to the Government
of India. |
|
Other Public
Companies in which Directorship held |
Ø Excel Industries
Limited (Chairman & Managing Director) Ø Excel Crop Care
Limited (Chairman & Director) Ø Kamaljyot
Investment Limited Ø ECCL Investments
and Finance Limited . Ø Transpek-Silox
Industry Limited (Chairman &
Director) Ø Phthalo Colours
& Chemicals (I) Limited Ø Waxsam Ltd.,
Hong Kong |
|
Other Public
Companies in which membership of Committees of Directors held |
Ø Chairman &
Member of Shareholders/ Ø Investor
Grievance Committee Ø Excel Crop Care
Limited |
|
|
|
|
Name : |
Mr. R. R. Patel |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Dhirajlal C
Gami |
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Designation : |
Director |
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Date of Birth/Age : |
26.09.1927 |
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Qualification : |
M. S. from the University of Michigan, U.S.A |
|
Experience : |
39 years |
|
Date of Appointment : |
30.07.1984 |
|
Brief
Resume : |
Shri D. C. Gami is a M. S.
(Chemical Engineering) from the University of Michigan, USA. He has vast experience
of more than 52 years in research, project planning, execution, operations
and management. He had also served as Managing Director of State owned
fertilizer company (now known as "Gujarat State
Fertilizers & Chemicals Limited"). |
|
Other Public
Companies in which Directorship held |
Ø Jindal Hotels
Limited (Chairman) Ø Ashok Organic
Industries Limited Ø Gujarat JHM
Hotels Limited Ø Environment
Infrastructure Company Limited |
|
Other Public Companies
in which membership of Committees of Directors held. |
Chairman of
Audit Committee Ø Gujarat JHM
Hotels Limited Ø Jindal Hotels
Limited Ø Ashok Organic
Industries Limited |
|
|
|
|
Name : |
Mr. D K Shroff |
|
Designation : |
Director |
|
Brief
Resume : |
Shri Dipesh K. Shroff, son of Chairman Emeritus, Shri Kantisen C.
Shroff, aged 46 years, having done Diploma in Civil Engineering, M. E. P.
from IIM, Ahmedabad and OPM from Harvard Business School, Boston, is presently
the Managing Director of Excel Crop Care Limited, a listed Company. He is
also trustee of Vivekananda Research & Training Institute, Kutch,
Chairman of International Resources for
Fairer Trade Mumbai, and Trustee & Adviser of "Shrujan".
|
|
Other Public
Companies in which Directorship held |
Ø Excel Crop Care
Limited (Managing Director) Ø Excel Industries
Limited Ø Agrocel
Industries Limited Ø Kamaljyot
Investments Limited Ø Shroffs
Engineering Limited Ø Upexcel Limited Ø Excel Industries
Euro N. V., Belgium Ø Hyderabad
Chemical Supplies Limited Ø Parul Chemicals
Limited Ø Aimco Pesticides
Limited |
|
Other
Public Companies in which membership of Committees of Directors held. |
Ø Hyderabad
Chemicals Supplies Limited Member of Shareholders/Investor Grievance Committee Ø Excel Industries
Limited |
|
|
|
|
Name : |
Mr. M L Shah |
|
Designation : |
Director |
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|
Name : |
Mr. M D Patel |
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Designation : |
Director |
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|
Name : |
Mr. A H Patel |
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Designation : |
Director |
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|
Name : |
Dr. Bernd Dill |
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Designation : |
Additional
Director |
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Date of Birth/Age : |
17.09.1950 |
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Qualification : |
School and
University education with emphasis on mathematics and natural sciences |
|
Date of Appointment : |
22.06.2007 |
|
Resume : |
Dr. Bernd Dill, a German National, has done his school and
university education with emphasis on mathematics and natural sciences,
Doctoral Thesis Summa Cum laude at Frankfurt University. At present he is
holding position as Executive Vice President Technology of LURGI AG in
Frankfurt and is also a Director on the Board of Sasol / Lurgi, South Africa
w.e.f. 03.11.2006. He is having solid technical background, extensive
experience in managing people from culturally very different environments,
identification and recognition of talented and outstanding people, strong
business and customer orientation, negotiating skills and experience and
initiative, drive and result orientation. He holds membership of several
professional organizations, some of which are National Technology and
Environment Council of the German Chemical Industry Association, British
Chemical Industry Association, American Chemical Society, Optical Society of
America etc. He is also a member of the publishers' Board for Roempp's
Chemical encyclopedia. |
|
Other Public Companies in
which Directorship held |
Ø Sasol/Lurgi, South Africa |
KEY EXECUTIVES
|
Name : |
Mr. S. K. Solanki |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Indian Promoters |
|
1525534 |
|
Life Insurance Corporation of India |
|
216132 |
|
United India Insurance Company Limited |
|
28750 |
|
National Insurance Company Limited |
|
74950 |
|
Unit Trust of India |
|
2450 |
|
Stock Holding Corporation of India Limited |
|
200 |
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Southern India Depository Services Private Limited |
|
250 |
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Nationalised banks |
|
4362 |
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Shares Pledged with Citibank N.A. |
|
950 |
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Foreign Company/institutions |
|
420 |
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Non resident individuals |
|
34157 |
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Other body corporate |
|
434137 |
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Individuals |
|
2750748 |
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Total
|
|
5073040 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Sulphoxylate, Chlorinated Compounds, Rubber Chemicals & Related
Chemicals, So3/Oleum, Oil Field & Related Chemicals and Other Zinc Base
Chemicals |
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|
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|
Products : |
Item Code No.
(ITC Code) : 283110.01 Product
Description : Sodium Hydro Sulphite Item Code No.
(ITC Code) : 283190.02 Product
Description : Sodium Formaldehyde Sulphoxylate Item Code No.
(ITC Code) : 281210.04 Product
Description : Thionyl Chloride |
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Imports : |
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Countries : |
Europe and Far East |
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Terms : |
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Purchasing : |
L/C terms |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Chlorinated Compounds |
|
17550 |
37390 |
21668 |
|
SO3/Oleum |
|
33000 |
40500 |
29212 |
GENERAL
INFORMATION
|
No. of Employees : |
463 |
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Bankers : |
v
State Bank
of India v
Axis Bank
Limited v
Bank of
Baroda |
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Facilities : |
Notes : 1. Loans on Cash
Credit Accounts from State Bank of India, Bank of Baroda and AXIS Bank
Limited (hereafter collectively referred to as "Consortium of
Banks") are secured by first charge by way of hypothecation of stocks of
raw materials, packing materials, consumable stores, finished goods,
semi-finished goods and book-debts. The aforesaid cash credit facilities are
further secured by way of charge on the whole of the fixed assets of the
Company ranking second and subservient for the charges created in respect of
borrowings obtained from them The additional Cash Credit facilities amounting
to Rs.82.500 Millions obtained from the Consortium of Banks during the year are
to be secured by way of an equitable mortgage on whole of the fixed assets of
the Company, both present and future, ranking second and subservient to the
existing first charge holders viz. State Bank of India and AXIS Bank Ltd. 2. Corporate
Loan from State Bank of India amounting to Rs.12.000 Millions (Previous Year Rs. 16.000 Millions ) is
secured by first charge by way of hypothecation of all the movable assets
both present and future of the Company (excluding current assets charged in
favour of Consortium of Banks for securing borrowings for working capital
requirements). The said loan is further secured by first charge by way of an
equitable mortgage on the whole of the fixed assets of the Company, both
present and future on pari passu basis with existing second and subservient
charge holders. 3. Term Loan
from AXIS Bank Limited amounting to Rs.59.226 Millions (Previous
Year:Rs.68.316 Millions) or equivalent in
foreign currency is secured by first charge by way of hypothecation of all
machinery financed or to be financed under the said term loan. It is further
secured by first charge by way of hypothecation of all the movable assets of
the Company (excluding book-debts and other current assets charged in favour
of Consortium of Banks for securing borrowings for working capital
requirements). The said loan is also further secured by first charge by way
of an equitable mortgage on the whole of the fixed assets of the Company,
both present and future, on pari passu basis with existing second and subservient
charge holders. 4. Term loan
from Bank of Baroda amounting to Rs.88.886 Millions (Previous Year Rs.Nil) is
secured by first charge by way of hypothecation of all movable machinery
financed or to be financed under the said term loan. The Bank of Baroda has
agreed and ceded second pari passu charge in favour of State Bank of India
and AXIS Bank Ltd. on the said movable machinery financed / to be financed
out of the said term loan, for their respective working capital limits
sanctioned to the Company. The said loan is to be also further secured by
first charge by way of an equitable mortgage on the whole of the immovable
assets of the Company, both present and future, on pari passu basis with
existing first charge holders viz. State Bank of India and AXIS Bank Ltd. |
|
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Banking
Relations : |
Satisfactory |
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|
Auditors : |
|
|
Name : |
S. V. Ghatalia
& Associates Chartered
Accountants |
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|
Subsidiaries : |
Ø Excel Industries
Limited Ø Excel Crop Care
Limited Ø Transmetal
Limited Ø Shroff Engineering
Limited Ø Anshul
Speciality Molecules Limited Ø Agrocel
Industries Limited Ø Anshul Agencies Ø Shroff
Foundation Trust Ø Hyderabad
Chemical Supplies Limited Ø Transchem
Agritech Limited Ø C.C.Shroff
Research Institute |
|
|
|
|
Associates |
Ø Transpek Silox Industry
Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7500000 |
Equity Shares |
Rs. 10/- each |
Rs. 75.000 Millions |
|
500000 |
Preference Shares |
Rs. 100/- each |
Rs. 50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5073040 |
Equity Shares |
Rs. 10/- each |
Rs. 50.730 Millions |
Note : of the above Equity Shares
Ø 26,86,632 Equity Shares
have been allotted as fully paid-up by way of Bonus Shares by capitalization of
General Reserve.
Ø 250000 Equity
Shares have been allotted as fully paid-up pursuant to a scheme of amalgamation
without payments being received in cash.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
50.730 |
50.700 |
50.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
343.231 |
305.700 |
270.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
393.961 |
356.400 |
320.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
235.236 |
194.700 |
153.000 |
|
|
2] Unsecured Loans |
91.134 |
139.300 |
98.000 |
|
|
TOTAL BORROWING |
326.370 |
334.000 |
251.000 |
|
|
DEFERRED TAX LIABILITIES |
81.187 |
0.000 |
0.000 |
|
|
DEFERRED PAYMENT LIABILITIES |
27.269 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
828.787 |
690.400 |
571.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
533.273 |
458.500 |
363.800 |
|
|
Capital work-in-progress |
23.334 |
22.600 |
19.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
46.282 |
80.300 |
80.300 |
|
|
FIXED ASSETS HELD FOR DISPOSAL |
4.583 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
23.286 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
112.472
|
87.500
|
83.400 |
|
|
Sundry Debtors |
188.058
|
222.800
|
167.300 |
|
|
Cash & Bank Balances |
25.213
|
13.200
|
7.200 |
|
|
Other Current Assets |
0.198
|
0.000
|
0.000 |
|
|
Loans & Advances |
74.138
|
60.700
|
68.400 |
|
Total
Current Assets |
400.079
|
384.200 |
326.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
160.228
|
230.200
|
211.200 |
|
|
Provisions |
42.306
|
30.000
|
17.400 |
|
Total
Current Liabilities |
202.534
|
260.200 |
228.600 |
|
|
Net Current Assets |
197.545
|
124.000
|
97.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.484 |
5.000 |
1.000 |
|
|
|
|
|
|
|
|
TOTAL |
828.787 |
690.400 |
571.700 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
803.077 |
772.624 |
|
|
|
Other Income |
32.310 |
10.200 |
|
|
|
Total Income |
835.387 |
782.824 |
627.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
74.356 |
80.915 |
27.500 |
|
|
Provision for Taxation |
27.362 |
30.404 |
1.300 |
|
|
Profit/(Loss) After Tax |
46.994 |
50.511 |
26.200 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
268.722 |
174.986 |
NA |
|
|
|
|
|
|
|
|
Total Imports |
76.307 |
18.832 |
NA
|
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing and other Expenses |
686.373 |
625.902 |
|
|
|
Purchase of Traded Goods |
5.875 |
2.613 |
|
|
|
Depreciations |
44.071 |
37.598 |
|
|
|
Interest and other financial costs |
33.115 |
30.863 |
|
|
|
Short /[excess] Provisions [Net] |
[0.836] |
0.001 |
|
|
|
Amortization of Deferred revenue Expenses |
4.479 |
5.069 |
|
|
|
|
|
702.046 |
|
|
|
Increased in stocks |
[12.046] |
[0.137] |
|
|
Total Expenditure |
761.031 |
701.909 |
628.600 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
194.400 |
273.100 |
|
Other Income |
|
8.400 |
2.200 |
|
Total Income |
|
202.800 |
275.300 |
|
Total Expenditure |
|
190.800 |
246.900 |
|
Operating Profit |
|
12.000 |
28.400 |
|
Interest |
|
09.000 |
10.000 |
|
Gross Profit |
|
03.000 |
18.400 |
|
Depreciation |
|
12.400 |
12.300 |
|
Tax |
|
00.500 |
0.400 |
|
Reported PAT |
|
-08.900 |
5.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.92 |
0.86 |
0.82 |
|
Long Term Debt-Equity Ratio |
0.65 |
0.63 |
0.65 |
|
Current Ratio |
1.06 |
1.09 |
1.09 |
|
Fixed Assets |
1.02 |
1.19 |
1.02 |
|
Inventory |
8.46 |
9.63 |
10.11 |
|
Debtors |
4.12 |
4.22 |
4.13 |
|
Interest Cover Ratio |
3.24 |
3.61 |
4.30 |
|
Operating Profit Margin(%) |
17.91 |
18.19 |
20.39 |
|
Profit Before Interest And Tax Margin(%) |
12.69 |
13.58 |
15.64 |
|
Cash Profit Margin(%) |
10.77 |
10.75 |
12.57 |
|
Adjusted Net Profit Margin(%) |
5.55 |
6.14 |
7.83 |
|
Return On Capital Employed(%) |
14.99 |
17.91 |
17.44 |
|
Return On Net Worth(%) |
12.53 |
14.92 |
14.74 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
Ø
Land
Ø
Building
Ø
Pumps and Water Pipe lines
Ø
Plant and Machinery
Ø
Electrical Installations
Ø
Research and development equipments
Ø
Furniture and Fixtures
Ø
Technical Books
Ø
Vehicles
REVIEW OF
OPERATIONS:
The net sales of the Company for the year under review increased to
Rs.803.100 Millions from Rs.772.600 Millions in the previous year, registering
a nominal growth of 4%. In the first six months the performance of the Company
was excellent as compared to the corresponding six months in the previous year
which was mainly due to increased exports, major savings in raw-material cost
particularly in Chlorine and change in product-mix. The Acid Chloride products
have continued to take lead in the beginning of the current year. However, due
to substantial fall in the volume and value of sales in the subsequent six
months, the top line growth for the year under review was restricted to merely
4% over previous year and profit was marginally lower as compared to previous
year.
During the year under review the Company established closer contact with
overseas customers, identified and developed new products, increased capacity
in certain plants by additions to fixed assets.
Export sales have been
receiving focussed attention as a result of which it registered a growth of
fifty four per cent (54%) from Rs.175 Millions to Rs.268.700 Millions
constituting 33% of the total sales turnover of the Company.
Stiff competition both in
the domestic and export markets, addition of newer customers to its customer
base, efforts to introduce newer molecules, strengthening of export packaging
including addition to the fleet of ISO tanks have been the highlights of the
year under review.
NEW PROJECTS / EXPANSIONS / IMPROVEMENTS:
During the year under
review, the installed capacity of Thionyl Chloride plant increased to 23% per
annum. Continuous process improvements resulted in reduction in costs and in
effluent and by-products generation. De-bottle-necking of the SO plant resulted
in an increase in its capacity to 12% per annum. Certain by-products 3 causing
disposal problems were used for producing new marketable products in pilot
plant which will be commercialized in the near future.
By strengthening R&D
activities, three new products were added to the product slate of the Company
during the year.
OUTLOOK:
The Company is gearing up for higher production to match its market expansion
activities in the current year.
QUALITY MANAGEMENT SYSTEM
CERTIFICATION: Quality of their products has been accepted by more and more customers
in domestic as well as in international markets.
Recertification audit of
their QMS was carried out on 1st & 2nd June - 2006 by M/s. TUV and
certification was renewed for further 3 years.
There has been continuous
up-gradation of product specifications. In their product categories, we have
benchmarked with the best in the world. Their internal specifications are
uniformly more stringent than those given by customers.
ENVIRONMENT:
The Environment Management System was upgraded as per the revised version of
ISO 14001 : 2004 and was maintained throughout the year. The Company has
contributed to the conservation of natural resources by rain water harvesting,
process water recycling and by addition of bio-filter methods for using toilet
and canteen waste.
Seven thousand trees have
been planted during the year and a garden has been developed all along the
boundary wall of the factory premises. An in-house nursery has also been
developed.
INDUSTRY STRUCTURE AND DEVELOPMENTS:
The company's main product
- Thionyl Chloride - is an intermediate for crop protection chemicals,
especially insecticides. Though increasing emphasis is placed by Government on
improvement in agricultural productivity, the domestic crop protection industry
viz. insecticide is beset with large inventories essentially due to
uncertainties caused by the seasonal nature of the business coupled with high
level of competition and reduced demand for crop protection chemicals by cotton
growers due to the increased use of BT cotton seeds. In the international
arena, the industry is not growing. These factors had their effect in the
Company's Thionyl Chloride business in the insecticides space.
Use of Thionyl Chloride in
dyes industry has shown improvement. However, due to entry of new manufacturers
in the dyes and Pharma segments, the Company could not increase sales volume in
this sector. Efforts are in progress to reverse this trend in the dyes segment
because of their improved quality and services.
They also see a good
opportunity in Pharma segment for their new Acid Chlorides for bulk drugs both
in the domestic and international markets.
Acid chlorides also have
applications in polymers. The strategic positioning of the Company in the
international market for acid chlorides in the polymers sector about two years
back has resulted in increased exports and this strategy will be continued in
the coming years. Similarly strategy is being adopted in pharmaceuticals,
dyestuffs and other speciality performance chemicals and these industries indicate
promising growth. Herbicides and fungicides also seem to have a bright future
both in the domestic and export markets and the Company is focusing in that
segment too.
Opportunities and threats:
Opportunities
Having regard to the industry trends as outlined above, it is proposed to
concentrate on developing products catering to the manufacture of herbicides,
fungicides, polymers, pharmaceuticals, dyestuffs and speciality performance
chemicals.
Threats:
New players have entered the domestic market for Thionyl Chloride. Together
with imports, these have resulted in stiffer competition in a shrinking market,
subdued prices for the product and reduced margins.
The strengthening of the
Rupee against the US Dollar is also a factor contributing to lotheyr export
price realization and pressure on margins.
Lotheyring of import duty
coupled with theyakening of the Dollar against the Rupee will encourage
increased import of Thionyl Chloride in India.
Hotheyver, the Company is
capable of overcoming such competition in future due to its intensive efforts
in improving operational efficiency and effecting cost reduction in every
sphere.
As reported last year, they
are continuing with effective implementation of KAIZEN techniques throughout
the organization.
Outlook:
The monsoon in the current year is expected to be good and thus the demand for
crop protection chemicals is likely to increase. This is likely to increase
sales of Thionyl Chloride despite the threats outlined above.
Effective cost reduction
measures undertaken by the Company are also likely to result in effectively
meeting the challenges and threats. Efforts in progress to increase captive
consumption of Thionyl Chloride for acid chlorides production catering to
industries other than agrochemicals are also likely to have a favourable impact
on the Company's overall business.
RISKS AND CONCERNS:
The vagaries of monsoon are
a major area of concern. If the actual rainfall does not match with
predictions, reduced offtake of agrochemicals resulting therefrom would pose a
threat to the domestic sales of Thionyl Chloride.
The continuing trend of the
Rupee becoming stronger is another area of concern.
Appropriate steps as
outlined above are, hotheyver, being initiated to mitigate these risks and
concerns.
Internal Control Systems and their
adequacy:
The Company maintains an
adequate and effective internal control system commensurate with its size and
complexity. They believe that these internal control systems provide, among
other things, a reasonable assurance that transactions are executed with
management authorizations and that they are recorded in all material respects
to permit preparation of financial statements in conformity with established
accounting principles and that the assets of the Company are adequately
safe-guarded against significant misuse or loss.
An independent internal
audit function is an important element of the Company's internal control
system. The internal control systems are supplemented through an extensive
internal audit programmed and periodic review by management. The Company has
clearly laid down policies, guidelines and procedures that form part of its
internal control systems.
AS
PER WEBSITE DETAILS :
History
Established in 1965, Transpek Industry (TIL) went public in
Sep.'78. It started with the manufacture of acrylic plastic sheets at its plant
at Atladra (Vadodra district), Gujarat. In 1969, it discontinued manufacturing
acrylic sheets and started manufacturing chemicals.
PROFILE :
Subject was set up in 1965 initially
for manufacturing Transparent Acrylic Sheets. There lies the origin of the word
"Transpek". Since then the Company has grown to become one of the
leading manufacturers and exporters of a range of chemicals servicing the
requirements of customers from a diverse range of industries - Textiles,
Pharmaceuticals, Agrochemicals, Polymers, etc. Since inception,
Transpek has evolved as a
‘First Time’ manufacturer of several products in India and also pioneered the
development of the market for the same.
Over a decade of presence
in the international market, Transpek has earned for itself a name for being a
quality supplier. With its expertise in handling Chlorine and Sulphur, Transpek
has indigenously developed process for chlorinated chemicals like Thionyl
Chloride and Chloro Acetyl Chloride. Today the capacity for Thionyl Chloride at
Transpek is the largest outside Europe.
Transpek used to
manufacture Sodium Hydro Sulfite, Safolite, Safoline, Zinc Oxide and Zinc Dust.
This business since has been transferred to Transpek Silox Industry Limited, a
Joint Venture .
Total customer satisfaction
has been their motto which goes beyond just making a sale. The customers are
educated in the correct and efficient usage of the product. They offer a range
in packaging, starting from 25 kg customized packing to bulk packing in ISO
containers.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or
was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 39.35 |
|
UK Pound |
1 |
Rs. 80.36 |
|
Euro |
1 |
Rs. 57.62 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
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 |
|