MIRA INFORM
REPORT
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Report Date : |
06.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
CHEMETALL-RAI INDIA LIMITED |
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Registered Office : |
Nirlon House, 254-B, Dr. A. B. Road, Worli,
Mumbai-400025, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
22.10.1964 |
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Com. Reg. No.: |
11-13040 |
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CIN No.: [Company
Identification No.] |
U28920MH1964PLC013040 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC11488B |
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PAN No.: [Permanent
Account No.] |
AAACP2287P |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturing of Pyrene Products, Bonderizing and Pakerizing
Processes and Metal Furnishing. |
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
425000 |
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Status : |
Satisfactory
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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 satisfactory track. Trade relations are
fair. Payments are usually correct and as per commitments. The company is
doing well. It can be considered normal for business dealings at usual trade
terms and conditions. The
company can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
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Registered Office : |
Nirlon House, 254-B, Dr. A. B. Road, Worli,
Mumbai-400025, Maharashtra, India |
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Tel. No.: |
91-22-24934586 / 24924700 / 24924743 |
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Fax No.: |
91-22-24931878 |
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E-Mail : |
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Website : |
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Head
Office & Corporate Office : |
Gat No.569, Pune-Nagar Road, Village
Koregaon Bhima, Taluka-Shirur, Pune-412 207 |
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Tel.
No.: |
91-20-56164751 to 54 |
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Fax
No.: |
91-2137 – 253128 |
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Factory
1 : |
Plot No. 6/1. MIDC Industrial Area, Kalyan Bhiwandi Road,
Saravali Village, District Thane, Kalyan – 421 311, Maharashtra, India. |
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Branches
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Bangalore, Kolkata, Chennai, New Delhi, Murnbai, & Pune |
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Factories and
Technical center: |
Kalyan and Koregaon Bhima, Pune |
DIRECTORS
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Name : |
Mr. Ram Nath |
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Designation : |
Director |
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Name : |
Mr. S. Rai |
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Designation : |
Director |
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Name : |
Mr. A Fazelbhoy |
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Designation : |
Director |
KEY EXECUTIVES
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Name
: |
Mr. V. Gandikota |
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Designation
: |
Chief Executive |
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Date
of Birth/Age : |
57 years |
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Qualification
: |
B. Sc., PGDM, IIMC |
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Experience
: |
36 years |
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Date
of Appointment : |
1st October, 1985 |
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Previous Employment : |
Berger Paints India Limited |
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Name
: |
Mr. N. R. Arur |
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Designation
: |
General Manager (Finance) |
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Date
of Birth/Age : |
54 years |
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Qualification
: |
B.Sc., PGDM, IIMC |
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Experience
: |
32 years |
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Date
of Appointment : |
6th December, 1988 |
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Previous Employment : |
Orient Longman Limited |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Pyrene Products, Bonderizing and Pakerizing
Processes and Metal Furnishing. |
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Products : |
Boron Amorphous Calcium Hydride Magnesium Metal Powder Thallium Lodide Granules Thallium Lodide |
PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Powder Chemicals |
MT |
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870 |
1156 |
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Liquid Chemicals |
KL |
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7620 |
1792 |
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Liquid Chemicals |
MT |
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-- |
2738 |
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Powder / Liquid Chemicals |
NOS |
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-- |
19832 |
GENERAL
INFORMATION
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No. of Employees : |
300 |
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Bankers : |
Canara Bank, Sir P. M. Road, Mumbai – 400 001, India |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
A F Ferguson and Company Chartered Accountant Allahabad Bank Buildings, Mumbai Samachar Marg, Mumbai – 400 001, Maharashtra, India |
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Subsidiaries : |
Indrox Chemicals Limited Pyrox Speciality Chemicals Limited |
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Associates : |
Duro Metochem Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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750,000 |
Equity Shares |
Rs. 10/- each |
Rs. 7.500 millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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735,000 |
Equity Shares |
Rs. 10/- each |
Rs. 7.350 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
7.350 |
7.350 |
7.350 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
100.902 |
94.660 |
80.414 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
108.252 |
102.010 |
87.764 |
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LOAN FUNDS |
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1] Secured Loans |
25.660 |
23.161 |
7.425 |
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2] Unsecured Loans |
5.000 |
3.500 |
1.500 |
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TOTAL BORROWING |
30.660 |
26.661 |
8.925 |
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DEFERRED TAX LIABILITIES |
2.500 |
3.400 |
1.759 |
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TOTAL |
141.412 |
132.071 |
98.448 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
52.928 |
51.663 |
46.566 |
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Capital work-in-progress |
2.955 |
1.641 |
1.365 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
31.398
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25.776 |
26.648 |
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Sundry Debtors |
95.288
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83.288 |
59.164 |
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Cash & Bank Balances |
1.656
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3.731 |
6.465 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
17.796
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13.277 |
11.484 |
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Total Current Assets |
146.138
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126.072 |
103.761 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
49.825
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43.902 |
49.468 |
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Provisions |
10.784
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3.687 |
4.907 |
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Total Current Liabilities |
60.609
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47.589 |
54.375 |
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Net Current Assets |
85.529
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78.483 |
49.386 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.284 |
1.131 |
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TOTAL |
141.412 |
132.071 |
98.448 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover [including other
income] |
328.193 |
300.634 |
216.730 |
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Profit/(Loss)
Before Tax |
16.075 |
32.276 |
15.118 |
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Provision
for Taxation |
5.100 |
12.641 |
5.600 |
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Profit/(Loss)
After Tax |
10.975 |
19.635 |
9.518 |
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Export
Value |
22.253 |
23.625 |
8.290 |
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Import
Value |
29.899 |
15.326 |
11.171 |
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Total
Expenditure |
312.118 |
268.358 |
201.611 |
KEY
RATIOS
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PARTICULARS |
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31.03.2005 |
31.03.2004 |
31.03.2003 |
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PAT / Total Income |
(%) |
3.34
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6.53 |
4.39 |
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Net
Profit Margin (PBT/Sales) |
(%) |
4.90
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10.74 |
6.98 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
8.08
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18.16 |
10.06 |
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Return on
Investment (ROI) (PBT/Networth) |
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0.15
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0.32 |
0.17 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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0.84
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0.73 |
0.72 |
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Current
Ratio (Current
Asset/Current Liability) |
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2.41
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2.65 |
1.91 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject was incorporated on 22nd October, 1964 at
Mumbai in Maharashtra as a Private Limited Company under the name and style of
Pyrene-Rai Metal Treatment Private Limited. Later it was converted into a Public
Limited Company and the name of the company was changed to the present w.e.f. 6th
February, 1996.
The company’s fixed assets of important value include Leasehold
Land, Freehold Land, Buildings, Plant and Machinery, Electrical Equipment,
Installation and Accessories, Furniture, Fixture and Office Equipments, Motor
Vehicles and Laboratory Equipments.
Company Operations
Coming off the back
of a high growth year the growth rate has dropped although it continues to he
higher
than that of the
economy.
Due to a fire and
consequent shut down in a major vendor's plant in India, the price of a major
input almost doubled making a serious impact on the Company's margins during
the year. This was worsened by an adverse supply demand position for the input
in the international market as well. The prices have stabilized albeit at a
higher level in the next financial year.
It has been decided
to accept a one-time charge of Rs 3.007 Millions on account of provision for gratuity
liability to employees in accordance with the applicable accounting standards.
The outlook for the
coming year is positive.
The year under
report (Year ended 31-3-05) has resulted in a net profit of Rs. 11.690 Millions
after providing Rs. 3.798 Millions
for Depreciation and Rs. 5.100 Millions for Taxation. This amount together with
the Profit of Rs. 34.601 Millions brought forward from earlier years
aggregating to Rs. 46.291 Millions is available for appropriation.
The Directors take
note of the Auditors' comments regarding deposit of statutory dues The,
Directors further state that the delays in deposit of statutory dues due to
general destabilization consequent on shifting of the Company's Head Office
Accounts from Worli to Nagar Road continued for 4 months into the financial
year under report.
As on date, all
undisputed statutory dues have been deposited. The Company had taken necessary
measures to prevent recurrence of these incidents in the previous year itself.
These have taken total effect and there are no delays after July 2004.
Trade terms with
- Daman Metallic
Oxides
- Caps &
Containers Industries
- Alchem
Industries
- Apollo Plastic
Industries
- Knox Pure
Chemicals
- Fluorine
Chemicals Private Limited
- Metal Salts
& Catalysts (I) Private Limited
- Naman Plastic
Processor Limited
- Shree Chlorates
- Boisur
Chemicals Private Limited
- Victory
Plastics
- Pharma Products
- Silvo Liacal
Chemicals Limited
- Shobha
Engineering Company
- Eastern
Petroleum Private Limited
- Mysore Ammonia
Supply Corporation
- Kishko Chemicals
- Ramsco Chemical
Industries
- Venus Fluorides
& Chemicals
- Galaxy
Surfactants Limited
- Jai Ambe
Plastics
- Shinde
Chemicals
- Gayatri
Minerals And Chemicals
- Harlem
Polycontainers Private Limited
- A Choksey
Chemical Industries
The company is in technical collaboration with Chemetall GmbH,
Germany.
The manufacturing consists of blending of raw materials in
electrically operated blending vessels. The major raw materials consumed by the
company includes Acids (including Phosphoric Acid and Other Acids), Chemicals, Zinc
Oxide, Organic Additives, Resins, Dyes, Wetting Agents, Oils and Solvents.
The company has imported the technologies for the manufacture of
chemicals for Printed Circuit Board Industry and Chemicals for Metal Finishing
Industry.
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 |
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US
Dollar |
1 |
Rs.44.61 |
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UK
Pound |
1 |
Rs.86.80 |
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Euro |
1 |
Rs.57.54 |
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 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
NO |
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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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54 |
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 |
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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 |
|
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 |
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