MIRA
INFORM REPORT
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Report Date : |
01.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
GANESH
BENZOPLAST LIMITED |
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Registered Office : |
Ganesh House, Off
Andheri-Kurla Road, Marol Naka, Andheri (East), Mumbai – 400 059, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
15.05.1986 |
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Com. Reg. No.: |
11-39836 |
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CIN No.: [Company
Identification No.] |
L24200MH1986PLC039836 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG10314D |
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PAN No.: [Permanent
Account No.] |
AAACG1259J |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers and Sellers of Chemicals like Benzoplast, Benzoic Acid and Sodium Benzoate. |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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Maximum Credit Limit : |
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Status : |
Sick
Unit |
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Payment Behaviour : |
Slow
& Delayed |
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Litigation : |
-- |
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Comments : |
Subject
is a Sick Unit and has been referred to BIFR. Company’s profitability is under severe pressure. It continue
to incur heavy losses. It has huge
accumulated losses. Payments are
reported as slow & delayed. The
company can be considered for any business dealings on fully safe and secured
trade terms and conditions, only. |
LOCATIONS
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Registered/Administrative Office : |
Ganesh House, Off
Andheri-Kurla Road, Marol Naka, Andheri (East), Mumbai – 400 059, Maharashtra |
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Tel. No.: |
91-22-28321794/28593252/53/54/57 |
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Fax No.: |
91-22-22068475/28505529/4412 |
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E-Mail : |
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Website : |
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Factory
: |
Chemical
Division: D-5/2 & D-21/2/2, M.I.D.C. Industrial Area, Tarapur, Dist. Thane, Maharashtra, India Infrastructure
Division: Jawaharlal Nehru Port (JNPT), Bulk Road, Nhava Sheva, Navi Mumbai – 400 707, Maharashtra, India Tel. No. 91-22-27241011 Plot No. A-1,2,3, South End, Willington, Island, Cochin –682029, Kerala, India Head Land, Sada, Mormugoa – 403803, Goa, India
Salt
Division: Ganesh Nagar, Navlakhi Port Road, Khirsara, Taluka Malia, District Rajkot, Gujarat, India |
DIRECTORS
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Name : |
Mr. Ramesh S. Pilani |
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Designation : |
Chairman |
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Name : |
Mr. Ramakant Pilani |
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Designation : |
Managing Director |
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Name : |
Mr. Kirti H. Desai |
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Designation : |
Director [ICICI Nominee] [Up to
24.02.2006] |
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Name : |
Mr.
Ashish K. Gupta |
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Designation : |
Director
[IFCI Nominee] [Up to 06.04.2005] |
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Name : |
Smt.
Manju Jain |
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Designation : |
Director
[IFCI Nominee] [w.e.f. 31.01.2006] |
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Name : |
Mr. D.
P. s. Jindani |
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Designation : |
Director
[w.e.f. 30.06.2005] |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters |
13.86 |
6026041 |
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Individuals |
61.68 |
18712960 |
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Domestic Companies |
12.23 |
3711929 |
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FIs, Mutual Funds & Bank |
0.66 |
200900 |
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Fits, OCBs & NRI |
5.57 |
1686870 |
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TOTAL |
100.00 |
30338700 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Sellers of Chemicals
like Benzoplast, Benzoic Acid and Sodium Benzoate. |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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Benzoplast (Benzoate Plasticizers) |
M.T. |
9000.00 |
170.465 |
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Benzoic Acid |
M.T. |
1800.00 |
888.730 |
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Sodium Benzoate |
M.T. |
1800.00 |
909.130 |
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Sodium Petroleum |
M.T. |
150.00 |
127.510 |
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Industrial Lubricant |
M.T. |
15000.00 |
278.009 |
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Others |
M.T. |
-- |
440.162 |
GENERAL INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
State Bank of India Canara Bank Syndicate Bank Indian Overseas Bank |
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Facilities : |
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Banking Relations : |
-- |
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Auditors : |
Shivkumar
Sharma & Associates Chartered
Accountants, Mumbai |
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Associates : |
Ganesh Anhydride Limited Ganesh Energene Limited Agarwal Chemicals Ganesh Medicament Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity Shares |
Rs.
10/- each |
Rs.
400.000 millions |
Issued
& Subscribed Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
30338700 |
Equity Shares |
Rs.
10/- each |
Rs. 303.387 millions |
Paid-up
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
30338700 |
Equity Shares |
Rs.
10/- each |
Rs. 303.387 millions |
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Less : |
Calls in arrears |
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Rs. 11.592 millions |
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TOTAL |
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Rs. 291.794
millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
291.794 |
291.794 |
291.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2077.571 |
2077.293 |
239.400 |
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4] (Accumulated Losses) |
[3794.045] |
[2980.861] |
0.000 |
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NETWORTH |
[1424.680] |
[611.774] |
531.200 |
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LOAN FUNDS |
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1] Secured Loans |
4304.098 |
4066.175 |
3536.900 |
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2] Unsecured Loans |
432.932 |
433.461 |
434.400 |
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TOTAL BORROWING |
4737.030 |
4499.636 |
3971.300 |
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DEFERRED TAX LIABILITIES |
337.270 |
337.270 |
0.000 |
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TOTAL |
3649.620 |
4225.132 |
4502.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3455.642 |
3662.915 |
3645.700 |
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Capital work-in-progress |
25.010 |
61.318 |
272.700 |
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INVESTMENT |
2.415 |
2.415 |
2.400 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
6.254 |
53.454 |
161.900 |
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Sundry Debtors |
273.161 |
282.609 |
380.100 |
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Cash & Bank Balances |
14.825 |
42.109 |
39.000 |
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Other Current Assets |
72.590 |
127.649 |
0.000 |
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Loans & Advances |
115.981 |
103.409 |
254.700 |
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Total Current Assets |
482.811 |
609.230 |
835.700 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
409.096 |
325.871 |
567.700 |
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Provisions |
2.945 |
2.285 |
27.000 |
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Total Current Liabilities |
412.041 |
328.156 |
594.700 |
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Net Current Assets |
70.770 |
281.074 |
241.000 |
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MISCELLANEOUS EXPENSES |
95.783 |
217.410 |
340.700 |
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TOTAL |
3649.620 |
4225.132 |
4502.500 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
381.035 |
219.106 |
311.100 |
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Profit/(Loss)
Before Tax |
[633.484] |
[1025.689] |
[1366.000] |
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Provision
for Taxation |
179.699 |
117.309 |
0.000 |
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Profit/(Loss)
After Tax |
[813.183] |
[1142.998] |
[1366.000] |
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Export
Value |
24.077 |
8.140 |
N.A. |
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Total
Expenditure |
1014.520 |
1244.795 |
1677.100 |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
|
Sales Turnover |
|
85.100 |
109.500 |
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Other Income |
|
0.100 |
14.000 |
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Total Income |
|
85.200 |
123.500 |
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Total Expenditure |
|
79.800 |
122.400 |
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Operating Profit |
|
5.400 |
1.100 |
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Interest |
|
70.200 |
70.400 |
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Gross Profit |
|
[64.800] |
[69.300] |
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Depreciation |
|
64.500 |
64.500 |
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Tax |
|
0.100 |
0.100 |
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Reported PAT |
|
[129.400] |
[133.900] |
Notes
2006-06 Quarter 1
Expenditure Includes (Increase) / Decrease in Stock in
Trade Rs 1.385 million Consumption of Raw Materials Rs 21.424 million Other
Expenditure Rs 14.985 million General Administrative Expenses Rs 23.495 million
Selling and Distribution Expenses Rs 0.781 million Tax indicates Fringe Benefit
Tax EPS is Basic and Diluted Status of Investor Complaints for the quarter
ended June 30, 2006 Complaints Pending at the beginning of the quarter 12
Complaints Received during the quarter 54 Complaints disposed off during the
quarter 58 Complaints unresolved at the end of the quarter 08 1. Total
expenditure incurred on staff is Rs 2.892 million. 2. The above results were
taken on record by the Board of Directors at their meeting on July 31, 2006. 3.
Deferred Tax Assets has not been recognized because management is of the view
that there is no reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be realized. 4.
Loss during the quarter was mainly due to abnormally high prices of raw
materials and reduced production activity. 5. The above results have been prepared
by applying the same accounting policies as were applied in the most recent
annual financial statements.
2006-09 Quarter 2
Status of Investor Complaints for the quarter ended
September 30, 2006 Complaints Pending at the beginning of the quarter 08
Complaints Received during the quarter 54 Complaints disposed off during the
quarter 53 Complaints unresolved at the end of the quarter 09 1. Total
expenditure incurred on staff is Rs 3.548 million. 2. The above results were
taken on record by the Board of Directors at their meeting on October 31, 2006.
3. Deferred Tax Assets has not been recognized because management is of the
view that there is no reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized. 4. The above results have been prepared by applying the same
accounting policies as were applied in the most recent annual financial
statements.
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
[213.41]
|
[521.66] |
[439.08] |
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Net
Profit Margin (PBT/Sales) |
(%) |
[166.25]
|
[468.12] |
[439.08] |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
[16.08]
|
[24.00] |
[30.48] |
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Return
on Investment (ROI) (PBT/Networth) |
|
0.44
|
1.67 |
[2.57] |
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Debt Equity
Ratio (Total
Liability/Networth) |
|
[3.61]
|
[7.89] |
8.59 |
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Current
Ratio (Current
Asset/Current Liability) |
|
1.17
|
1.85 |
1.40 |
STOCK PRICES
|
Face
Value |
Rs.10/-
each |
|
High |
Rs.10.50/- |
|
Low |
Rs.9.75/- |
LOCAL AGENCY
FURTHER INFORMATION
History :
Subject was incorporated on 15th May, 1986 at Mumbai in Maharashtra having Company Registration Number 39836 which was promoted by Shankarmal Pilani, his sons and R. D. Punjabi.
Subject came out with a public issue in January 1995 to expand the chemical storage terminal at Jawaharlal Nehru Port near Mumbai and to set up manufacturing facilities for refined iodised salt (Installed capacity 360000 tpa). The company has commissioned the first stage of the storage tank at JNPT and is acquiring a sick company, United Salt Work Industries.
In 1996, the company increased the manufacturing facility of benzoplast to 9000 tpa by installing the balancing equipment for better process of chemicals due to which the company achieved a water white quality of benzoplast equivalent to the international standards.
During the year 1997, the company came out with a new product branded as "Presser - Fish" which is an ice additive for preservation of Fish.
In the year 2000-01, the company is implementing the project of setting up a storage terminal at Cochin and Goa. The work on this project is progressing well and is expected to be completed in ensuing year. During the year under report the company had been awarded with the ONGC contract of operation and maintenance of Multi Support and Goa Technical Vessel named as Samudra Prabha (MSV), Samudra Sarvekhak (GTV).
Financial
Results :
The Gross revenue from
Operations was Rs. 407.95 Millions for the year under report as against Rs.
289.48 Millions for the previous year. The division wise operational revenue is
as follows:
[Rupees in Millions]
|
Division |
For the year ended 31.03.2006 |
For the year ended 31.03.2005 |
% Increase / (Decrease) |
|
Chemical Infrastructure |
173.67 234.28 |
98.92 190.56 |
76% 35% |
The operations for the
year resulted in a loss of Rs. 813.18 Millions as against loss of Rs. 1143
Millions in the previous year.
REASONS FOR LOSS
The loss during the year under report was mainly due to the following reason
:
Unavailability of working capital and import of finished goods in large
quantity affected the production of chemical division.
Provision for Bad and Doubtful debts is of Rs. 115.79 million.
In addition, the accounts bear the charges for certain exceptional items, such
as the following.
Write off the 1/5th of the surrender cost of JNPT to the tune of Rs. 71.71
Millions, which are no more viable.
Deferred revenue expenditure of Rs. 45.60 millions of earlier years.
FUTURE OUTLOOK
Directors are hopeful for better performance in the current year. The
infrastructure division is recovering and showing better occupancy also
chemical division is showing better capacity utilization. The company is
vigorously pursuing various steps to improve sales, coupled with cost
conservation measures to improve profitability in coming years.
In the previous period IDBI & IFCI have issued notices under section 13(2)
of the Securitisation And Reconstruction and Enforcement of Security Act. IDBI
has also taken action U/S 13(4) of the Securitisation and Reconstruction and
Enforcement of Security Act by taking possession of the company's salt plant
located at Kirsara, The Company then approached the Hon'ble High Court. Mumbai
seeking a stay on IDBI's action. The Hon'ble High Court granted the stay on the
sale of assets taken over by IDBI till the Supreme Court decides on the matters
pertaining to the Securitisation and Reconstruction and Enforcement of Security
Act. In the meantime the company approached the institutional lenders with OTS
proposals. The company is hopeful that looking at the company's difficulties
the financial institutions will approve OTS proposals.
REFERENCE TO BIFR
In previous year net worth of the company has been fully eroded, as a result
company had approached to the Board for Industrial & Financial
Restructuring (BIFR) for protection provided under The Sick Industrial
Company's (Special Provisions) Act, 1985. BIFR has received & registered
our reference as case No. 10412005.
LEGAL CASES
Some of the financial institutions, banks and unsecured lenders have filed
debts recovery and other civil cases against the company. On the other hand
company has also filed cases for recovery of dues against various parties.
Sundry Debtors include
Rs. 134.68 Millions (Previous year 155.91 Millions) recoverable from ONGC,
which is overdue as per the terms of agreement. The Company had filed
arbitration case agianst ONGC towards the recovery of dues. As per the
direction of judges of arbitration committee OEC (OUSTDIE EXECUTIVE COMMITTEE)
has been appointed for the settlement of the dispute.
The company has
provided simple Interest on Loan from financial institutions and Banks as per
the terms of the original agreement, since the company has approached the
lenders for OTS, no penal charges are provided in the accounts. Some of the
banks and financial institutions had filed recovery cases in DRT against
Company.
The company has
approached the working capital Banks i.e. Canara Bank and Syndicate Bank for
OTS and the same has been accepted by them.
The capital and
reserve of the company has been fully eroded by the net losses, the necessary
reference to the Board for Industrial & Financial Reconstruction (BIFR) has
been made and the case has been registered. Pending the decision of the BIFR
with regard to the revival of the company, the accounts have been prepared on
going concern basis.
IDBI has taken
possession of salt division against their dues, but as per legal opinion obtained
by the company the ownership is still vests with the company and accordingly
company has charged depreciation on such assets.
The company has successfully obtained re-certification of ISO 9002 from Det Norske Veritas Quality for Quality System Standard.
Fixed
Assets :
The company’s fixed assets of important value include land (freehold and leasehold), buildings, plant & Machinery, residential flats at MIDC, office premises, furniture & fixtures, office equipments, vehicles, computer and data processing equipments.
WEBSITE
DETAILS
Ganesh
Benzoplast Limited (GBL) is the flagship company of the Rs. 2500 millions,
multi-division, multi-locational Ganesh Group of Companies. GBL's products
command near-to absolute monopoly status in niche markets. An independent,
performance-proven R&D department has again and again given the company a
cutting edge in product breakthroughs. Sodium Benzoate, a food preservative, is
produced and supplied by GBL to virtually every customer that uses it in India,
besides being exported to all major countries of Europe, South East Asia,
Middle East, etc. Exports account for 60% of GBL's production of Sodium
Benzoate and 50% of Benzoic Acid; to blue chip clients that includes Coca-Cola,
Pepsi, ICI, HOC, Vopak Group, Hindustan Levers, Parke-Devis, Cadburys to name a
few.
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.44.11 |
|
UK
Pound |
1 |
Rs.86.79 |
|
Euro |
1 |
Rs.57.44 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|