MIRA
INFORM REPORT
|
Report Date : |
17.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
HENKEL TEROSON
INDIA LIMITED |
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Registered
Office : |
74, Industrial
Development Colony, Mehrul Road, Gurgaon - 122 001, Haryana |
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Country: |
India |
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Financials as
on: |
31.03.2006 |
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Date of
Incorporation : |
31.10.1996 |
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Com. Reg. No.: |
05-33371 |
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CIN No.: [Company
Identification No.] |
U24222HR1996PLC033371 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKH01176A |
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Legal Form : |
Closely Held
Public Limited Liability Company |
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Line of
Business : |
Manufacturing and
exporting of adhesives, sealants and surface coating products in technical and
financial collaboration with Henkel AG of Germany. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Maximum Credit Limit : |
USD 600000 |
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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
subsidiary of Henkel, Germany. Available information indicates high financial
responsibility of the company. Their trade relations are fair. Financial position is good. Payments are correct and as per
commitments. The company can
be considered good for any business dealings at usual trade terms and
conditions. It can be regarded as a
promising business partners in a medium to long run |
LOCATIONS
|
Registered
Office/Factory : |
74, Industrial
Development Colony, Mehrul Road, Gurgaon - 122 001, Haryana, India |
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Tel. No.: |
91-124-2301097 /
4082409-10 / 4324100 |
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Fax No.: |
91-124-2321401 |
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E-Mail : |
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Website : |
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Location : |
Commercial |
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Branches : |
1, Sri Aurobindo
Marg, New Delhi - 110 016, India |
DIRECTORS
|
Name : |
Mr. Arvind Walia |
|
Designation : |
Director |
|
Address : |
C-222, Greater
Kailash, Part I, Delhi – 110048, India |
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Mobile No. : |
91-9811067780 |
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Fax No. |
91-11-26862644 |
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E-mail : |
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Other
Directorship : |
Gabriel India
limited U34101PN2001PLC015735 Whole Time
Director Anfilco Limited U99999HR2001PLC034614 Director |
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|
Name : |
Mr. Deepak Chopra |
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Designation : |
Director |
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Address: |
House no. 768,
Anfilco Housing Colony, Palam Road, Gurgaon-122016, Haryana |
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Date of
Birth/Age : |
25.12.1954 |
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Date of
Appointment : |
22.05.2002 |
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|
|
|
Name : |
Mr. Shyam
Mulchand Chandani |
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Designation : |
Director |
|
Address : |
B-1, Old DLF
Colony, Sunder Singh Marg, Gurgaon, Haryana |
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Date of
Appointment : |
31.10.1996 |
|
Date of
Ceasing : |
15.09.2003 |
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|
|
|
Name : |
Mr. W. Krey |
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Designation : |
Director |
|
Address : |
40191, Henkelstrasseb
67, Dusseldorf, Germany |
|
Date of
Birth/Age : |
25.02.1941 |
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Date of
Appointment : |
11.02.1997 |
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Date of
Ceasing : |
11.12.2003 |
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|
|
|
Name : |
Mr. Peter Scherer |
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Designation : |
Director |
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Address : |
P O Box No. 25790,
Riyadh 11476 (Saudi Arabia) |
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Date of
Appointment : |
11.02.1997 |
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Date of
Ceasing : |
11.12.2003 |
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|
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|
Name : |
Mr. David Oudot |
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Designation : |
Director |
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Address : |
Haug Burte,
Street 4, 69123, Heildelberg, Germany |
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Date of Appointment
: |
28.05.1997 |
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|
|
|
Name : |
Mr. Faruk Arig |
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Designation : |
Director |
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Address : |
N-19, Jurang Port
Road, Singapore 619093 |
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Date of
Birth/Age : |
08.12.1999 |
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Date of
Ceasing : |
11.12.2003 |
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|
Name : |
Mr. Aditya
Narayan |
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Designation : |
Director |
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Address: |
B-20/02, DLF
City-I, Gurgaon-122022, Haryana |
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Date of
Birth/Age : |
08.01.1952 |
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Date of
Appointment : |
15.09.2003 |
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Date of
Ceasing : |
24.08.2004 |
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|
|
Name : |
Mr. Griffin
Bartholomen |
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Designation : |
Director |
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Address: |
18/F Island Place
Tower, 510 Kings Road, North Point, Hong Kong |
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Date of
Birth/Age : |
28.05.1966 |
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Date of
Appointment : |
11.12.2003 |
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|
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|
Name : |
Mr. David Minshaw |
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Designation : |
Director |
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Address: |
Suite 2301, Parkside
Pacific Place, 88 Queensway, Hong Kong |
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Date of
Birth/Age : |
11.07.1946 |
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Date of
Appointment : |
11.12.2003 |
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|
Name : |
Mr. Steve Ellis |
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Designation : |
Director |
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Address: |
18/F Island Place
Tower, 510 Kings Road, North Point, Hong Kong |
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Date of
Birth/Age : |
14.12.1956 |
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Date of
Appointment : |
11.12.2003 |
KEY EXECUTIVES
|
Name : |
Mr. Arvind Walia |
|
Designation : |
Chief Operating Officer |
|
Address : |
C-222, Greater Kailash, Part I, Delhi – 110048, India |
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Mobile No. : |
91-9811067780 |
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Fax No. |
91-11-26862644 |
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E-mail : |
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|
Name : |
Mr. Sanjay Saraf |
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Designation : |
General Manager – Operations |
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Address : |
74, Industrial Development Colony, Mehrauli Road, Gurgaon – 122001,
Haryana |
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Tel. No. : |
91-124-2321749/2321085 |
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Fax No. : |
91-124-2321401 |
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E-mail : |
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|
Name : |
Sanjeev Bhatia and Associates |
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Designation : |
Company Secretary |
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Address : |
E-406, Rail Vihar, Sector-15 II, Gurgaon, Haryana |
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Tel. No. : |
91-124-2304628 |
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E-mail : |
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Name : |
Mr. D. J. Rao |
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Designation : |
Head of Operations |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
|
No. of Shares |
|
Henkel Kgaa,
Germany |
|
697735 |
|
Asia Investment Private Limited |
|
670368 |
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Mr. S. C. Patel |
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1 |
|
Mr. K. N. Subramaniam |
|
1 |
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Mr. Deepak Chopra |
|
1 |
|
Mr. P. S. Sharma |
|
1 |
|
Mr. K. P. Shrivastava |
|
1 |
|
Total |
|
1368108 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturing and
exporting of adhesives, sealants and surface coating products in technical
and financial collaboration with Henkel AG of Germany. |
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Products with
its Brands: |
·
Ride
Control-Gabriel Kayaba ·
Filtration-Purolator
·
Engine
Sealing-Perfect Circle, Victor ·
Drivetrain-Spicer
·
Car Care Products-STP,
Armor All ·
Climate
Control-Behr ·
Engine
Bearings-Federal-Mogul ·
Friction
Materials-Valeo ·
Sealants and
Coatings-Henkel Teroson ·
Synchroniser
Rings-Chang Yun ·
Exhaust-Arvin
·
Tools and
Dies-Dytek ·
Hydraulic
Brakes-Mando ·
Air Brake
Components-Haldex |
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Imports : |
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Countries : |
Germany and other
European countries. |
PRODUCTION STATUS
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
|
Sealants &
Adhesives |
|
Kgs Ltrs |
5100 |
3765 216 |
|
|
|
|
|
|
|
Preformed Parts |
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Mtrs. Nos. |
6300 |
3746 4722 |
GENERAL
INFORMATION
|
Customers : |
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No. of
Employees : |
5000 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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|
Name : |
Bharat S. Raut
& Company Chartered
Accountants |
|
Address : |
4-B, DLF
Corporate Park, DLF City, Phase – III, Gurgaon - 122001, Haryana, India |
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Tel. No.: |
91-124-2549191 |
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|
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Associates : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000 |
Equity Shares |
Rs. 10/- each |
Rs. 20.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1368108 |
Equity Shares |
Rs. 10/- each |
Rs. 13.681 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF
FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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|
SHAREHOLDERS FUNDS |
|
|
|
|||
|
1] Share Capital |
13.681 |
13.681 |
13.681 |
|||
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2] Reserves & Surplus |
135.679 |
113.333 |
114.929 |
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NETWORTH
|
149.360 |
127.014 |
128.610 |
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|
LOAN FUNDS |
|
|
|
|||
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|||
|
2] Unsecured Loans |
83.500 |
91.000 |
95.500 |
|||
TOTAL BORROWING
|
83.500 |
91.000 |
95.500 |
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|||
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DEFERRED TAX LIABILITIES |
4.173 |
2.862 |
0.359 |
|||
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|
|
|||
TOTAL
|
237.033 |
220.876 |
224.469 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
138.476 |
90.653 |
60.275 |
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Capital work-in-progress |
6.299 |
6.315 |
36.011 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
|
|||
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Inventories |
109.682 |
100.133 |
74.310 |
|||
|
Sundry Debtors |
80.911 |
74.419 |
63.783 |
|||
|
Cash & Bank Balances |
7.802 |
2.447 |
4.234 |
|||
|
Loans & Advances |
52.531 |
43.326 |
59.788 |
|||
|
Total Current
Assets |
250.926 |
220.325 |
202.115 |
|||
|
Less: CURRENT LIABILITIES
& PROVISIONS |
|
|
|
|||
|
|
Current
Liabilities |
127.175
|
78.246 |
73.932 |
||
|
|
Provisions |
31.493
|
18.172 |
|
||
Total Current Liabilities
|
158.668 |
96.418 |
73.932 |
|||
|
Net Current
Assets |
92.258 |
123.907 |
128.183 |
|||
|
|
|
|
|
|||
TOTAL
|
237.033 |
220.876 |
224.469
|
|||
PROFIT &
LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover (including other income] |
683.658 |
606.505 |
410.618 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
62.852 |
43.986 |
37.210 |
|
Provision for Taxation |
28.025 |
18.083 |
61.237 |
|
Profit/(Loss) After Tax |
34.827 |
25.903 |
24.027 |
|
|
|
|
|
|
Export Value |
0.929 |
0.485 |
0.378 |
|
|
|
|
|
|
Import Value |
NA |
6.928 |
7.246 |
|
|
|
|
|
Total Expenditure
|
620.806 |
632.408 |
362.248 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
5.09 |
4.27
|
5.85
|
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
9.19 |
60.86
|
9.06
|
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
16.14 |
13.86
|
12.47
|
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.42 |
0.35
|
0.29
|
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
1.62 |
1.47
|
2.32
|
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
1.58 |
2.28
|
2.73
|
LOCAL AGENCY
FURTHER INFORMATION
PROFILE
'Henkel Teroson India Ltd. was established in 1997 at Gurgaon (Haryana) in collaboration with Henkel Teroson GmbH, a wholly-owned subsidiary of the US $ 17 billion Group Henkel KGaA, Germany. The Company has also set up plants in Parwanoo (HP), Pune and Chennai. A supplier to all OEMs in the automobile industry, the Company manufactures adhesives, automotive sealants, radiator coolants, coatings and NVH range of products. The range covers products for Weld Shop, Paint shop and Trim shop with corresponding products for replacement market. Certified for both ISO-14001 / OHSAS-18001 & TS-16949 quality standards, Henkel Teroson India also has a Technical License with Sunrise MSI, Japan.
BUSINESS
To carry on the business
as manufacturers, producers, purchasers, sellers, importers, exporters,
distributors, dealers, commission agents an market representatives of all kinds
adhesives, sealants, coatings and related products.
GROUP PROFILE
Anand is a leading manufacturer of automotive components and systems in
India. With a sales turnover of US $
326 million, it has the widest range of auto components, supplied to vehicle
and engine produced in the country.
In 1961, Mr Deep C Anand, Chairman of Anand Automotive Systems, founded
the Group’s company – ‘Gabriel India’ in Mumbai for the manufacture of shock
absorbers. Anand comprises nineteen companies spread in eight states of the
country. It has also built up a sizeable export market, currently about 13% of
the total sales of existing products, targeted to reach 30% in the next few
years.
Employing over 5000 people, Anand has 800 professionally qualified
Engineers, MBAs and CAs. It invests two per cent of its sales every year on
training and development programmes, conducted by its in-house technical and
management institute - Anand 'U'.
Anand also believes that excellence in technology is the key to future
growth. Anand Technology Services (ATS) in Bangalore is an essential step
towards realisation of this belief. The role of ATS is to upgrade the Group’s
technological competence to world-class levels, acquiring knowledge and skills
in cutting-edge disciplines, developing products, modules and processes, and
undertaking assignments in areas of IT, Engineering Services & Machine
Building/Design for collaborators and customers.
Its product range
includes :
Shock Absorbers,
Struts, Front Forks
Engine Bearings
Piston Rings,
Castings
Gaskets
Automotive Filters
Axles, Driveshafts
Industrial Filters
Car Care Products, Coolants,
Resins
Adhesives,
Sealants, Coatings
Synchronizer Rings
Exhaust Systems
Climate Control
Hydraulic Brakes
Air Brake
Components
Friction Material
Tools & Dies
Engineering
Services
Machine Building
and Vibration Monitoring Services
Water & Environment
Technologies
Anand Initiatives
Women Empowerment
Concept of
Operating Engineers
Integration of
Managers with International Partners
Corporate
Governance
Overseas
Board/Review Meetings
Supervisory Board
in Place
Exports
Broadest range of
Auto Components in India
Anand Technology
Services established in 1995
Thirty Two
manufacturing locations in 8 states of India
It is in Trade
Terms with:
¶ A K Enterprises India
¶ Anysysco
¶ Chandigardh Zinc & Residues Private
Limited
¶ Chemicals and Industries
¶ Cinq Micron Chem Private limited
¶ Gaurav Enterprises
¶ Gupta Drum Company
¶ Nagraj Industries
¶ Navkar Iron Store
¶ Oswal Poly Rubbers
¶ Resinova Chemie Limited
¶ Stick Add Enterprises
¶
Time Packaging
Limited
¶ Vee Kay Industries
¶
Abhishek Poly
Pack
Fixed Assets:
¶ Leasehold Land
¶ Leasehold Buildings
¶ Plant & Machinery
¶ Vehicles
¶ Office Equipments
¶ Computers
¶ Furniture
¶ Goodwill
¶ Non Compete
Review
2004-05
Overall the Indian
Economy had a Robust Growth of 7% over Previous Year while inflation was contained
under 5%. Participating in this growth, manufacturing as well as service
sectors showed healthy growth rates of 8.3% & 8.9% respectively
The Automotive
industry continued its momentum and exceeded one million number of passenger
cars production during the year 2004-05. the buoyancy in this sector is
considered to be sustainable over a long period, resulting in all automotive
manufacturers initiating programmes for capacity augmentation as well as
introduction of new models
Analysis of
company results for year 2004-05
Net sales of the
company at 535.4 Min exceeded previous year sales by 31.4% PBT at 62.2 Min was
29% more than previous year. this years growth came after two successive high
growth years for the company in which company grew at a CAGR of 35% from year
2001-02. the company was able to record this growth in excess of the industry
growth, because of introduction of new products specially in the field of NVH
products which now contributes 12% of the total net sales.
The company
continued its dominance in the market share at around 60%.
Relentless pressure
from customers as well as competitors saw unit sale prices coming down on one
hand while raw material prices going up very significantly during the year.
Innovative
substitution and localization of raw materials and balancing of product mix
contributed to the company maintaining its profitability
Facilities:
New facility for
manufacturing of DGX at Parwanoo got fully operational during the course of the
year with all its initial teething problems resolved. There has been a delay in
getting customers approval for use of local DGX. Approvals from customers are
expected shortly.
Facility at Chennai
is under construction. This facility would add 3500 MTs of capacities of PVC
and would also have facility to produce preformed parts. This facility
scheduled to be operational by Dec-05 would cater to customers based in South
India
The company had set
up a facility at Pune for producing parts with Terocore for a specific
requirement of Tata Motors. However the Pune facility is being put to alternate
use for production of Radiator Coolants and as service godown. The company is
also planning to set up facilities for Wax and preformed parts
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.37 |
|
UK Pound |
1 |
Rs.79.47 |
|
Euro |
1 |
Rs.56.83 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|