MIRA
INFORM REPORT
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Report Date : |
29.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ENCORE
NATURAL POLYMERS PRIVATE LIMITED |
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Registered Office : |
405-408 Navbharat Estates, B Wing, 172
Zakaria Bunder Road, Sewri (West), Mumbai -
400 015, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
23.10.1991 |
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Com. Reg. No.: |
11-63720 |
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CIN No.: [Company
Identification No.] |
U24230MH1991PTC063720 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUME04802A |
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PAN No.: [Permanent
Account No.] |
AAACE9121B |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Manufacturer
of Guar Gum and Tamarind Kernil Powder and its Derivatives |
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 : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed company having satisfactory track records.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
405-408 Navbharat Estates, B Wing, 172 Zakaria Bunder Road, Sewri [West], Mumbai 400 015, India |
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Tel. No.: |
91-22-2415 8860/1/2 |
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Fax No.: |
91-22-2415 8862 |
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E-Mail : |
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Website : |
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Location : |
Rented |
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Plant
: |
227/233 G.I.D.C Estate, Naroda, Ahmedabad - 382 330, Gujarat, India |
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Tel.
No.: |
91-79-22822559
/ 22822548 |
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Fax
No.: |
91-79-22822393 |
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E-Mail
: |
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Location : |
Leased |
DIRECTORS
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Name : |
Mr
Ajitkumar Gordhandas Merchnat |
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Designation : |
Director |
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Address : |
98
Suvas Apartment, 68F L Jagmohandas Marg, Mumbai - 400006 |
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Date of Birth/Age : |
20.04.1928 |
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Date of Appointment : |
27.11.1998 |
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Name : |
Mr
Sudhir Ajitkumar Merchant |
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Designation : |
Managing
Director |
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Address : |
84
Suvas Apartment, 68F L Jagmohandas Marg, Mumbai – 400006 |
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Date of Birth/Age : |
25.08.1953 |
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Date of Appointment : |
27.11.1998 |
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Name : |
Mr
Viren Ajitkumar Merchant |
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Designation : |
Director |
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Address : |
98
Suvas Apartment, 68F L Jagmohandas Marg, Mumbai - 400006 |
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Date of Birth/Age : |
15.10.1965 |
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Date of Appointment : |
27.11.1998 |
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Name : |
Mr
Bharat R Joshi |
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Designation : |
Whole
Time Director |
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Address : |
6
Nishant II, Near Someshwar Complex I, Satellite Road, Ahmedabad – 380015 |
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Date of Birth/Age : |
10.02.1953 |
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Date of Appointment : |
01.08.2006 |
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Other Directorship: |
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MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Mrs Rupa
S Merchant |
10556 |
0.63 |
|
Mr
Sudhir A Merchant |
203500 |
12.15 |
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Mr
Ajitkumar Gordhandas |
500 |
0.02 |
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Mr
Viren A Merchant |
294056 |
17.56 |
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Mrs
Indu A Merchant |
12010 |
0.71 |
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Mrs
Shaila V Merchant |
36010 |
2.15 |
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Mr
Aditya S Merchant |
68010 |
4.06 |
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Mrs
Rupa S Merchant and Mr
Sudhir A Merchant |
104000 |
6.21 |
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Mrs
Indu Ajitkumar and Mr
Ajitkumar Gordhandas |
96000 |
5.73 |
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Mr
Ajitkumar Gordhandas and Mr
Sudhir A Merchant |
48000 |
2.86 |
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Mr
Sudhir A Merchant and Mrs Rupa
A Merchant |
64000 |
3.82 |
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Mr
Ajitkumar Gordhandas and Mrs
Indu Ajitkumar |
128000 |
7.65 |
|
Saidarshan
Business Centres Private Limited |
440000 |
26.28 |
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Mrs
Shaila V Merchant and Mr
Viren A Merchant |
80000 |
4.77 |
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Mrs
Nandini S Merchant |
24800 |
1.48 |
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Mrs
Anjali V Merchant |
800 |
0.04 |
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Mr
Viren A Merchant and Mrs
Shaila V Merchant |
64000 |
3.82 |
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Total |
1674242 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Guar Gum and Tamarind Kernil Powder and its Derivatives |
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Products : |
·
Guar
Gum ·
Tamarind
Kernil Powder and its Derivatives |
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Terms : |
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Selling : |
L/C,
Credit [90 days] |
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Purchasing : |
Credit
[30 days] |
PRODUCTION
STATUS
|
Particulars |
Unit |
|
Installed Capacity |
Actual Production |
|
Guar Gum / Tamarind Powder and Derivatives |
Matrix Tonnes |
|
10000 |
3534.418 |
GENERAL
INFORMATION
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No. of Employees : |
47 |
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Bankers : |
Bank of
Baroda, International Business Branch, Nariman Point |
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Banking Relations : |
Satisfactory |
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Auditors : |
A P
Asher and Company Chartered
Accountants |
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Address: |
Vela Kutir,
Plot No 25, Navyug Society, V M Road, JVPD Scheme, Vile Parle (West), Mumbai
– 400056, Maharashtra, India |
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Sister Concern : |
Encore
Healthcare Private Limited 405-408 Navbharat Estates, Sewri (West) Haliyon
/ ABS Private Limited 405-408 Navbharat Estates, Sewri (West) |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
20,00,000 |
Equity
Shares |
Rs 10/- each |
Rs. 20.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
16,74,242 |
Equity
Shares |
Rs 10/- each |
Rs 16.742 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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|
|
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1] Share Capital |
|
16.742 |
16.742 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
92.775 |
89.567 |
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4] (Accumulated Losses) |
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---- |
---- |
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NETWORTH |
|
109.517 |
106.309 |
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LOAN FUNDS |
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1] Secured Loans |
|
36.577 |
7.423 |
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2] Unsecured Loans |
|
0.000 |
0.000 |
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TOTAL BORROWING |
|
36.577 |
7.423 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
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TOTAL |
|
146.094 |
113.732 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
20.635 |
25.528 |
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Capital work-in-progress |
|
4.051 |
0.000 |
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INVESTMENT |
|
14.904 |
14.904 |
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DEFERREX TAX ASSETS |
|
0.351 |
0.805 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
54.829 |
30.528 |
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Sundry Debtors |
|
49.451 |
44.916 |
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Cash & Bank Balances |
|
0.986 |
1.981 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
27.987 |
16.172 |
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Total Current Assets |
|
133.253 |
93.597 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
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Current Liabilities |
|
18.340 |
13.901 |
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Provisions |
|
8.760 |
7.200 |
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Total Current Liabilities |
|
27.100 |
21.101 |
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Net Current Assets |
|
106.153 |
72.496 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
|
146.094 |
113.733 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales Turnover [including other
income] |
|
208.786 |
181.319 |
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Profit/(Loss)
Before Tax |
|
7.662 |
12.330 |
|
Provision
for Taxation |
|
4.214 |
4.964 |
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Profit/(Loss)
After Tax |
|
3.448 |
7.366 |
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Export
Value |
|
145.421 |
120.964 |
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Total
Expenditure |
|
201.124 |
168.989 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
|
|
1.65 |
4.04 |
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Net
Profit Margin(PBT/Sales) |
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|
3.66 |
6.80 |
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Return
on Total Assets(PBT/Total Assets} |
|
|
4.97 |
10.35 |
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Return
on Investment (ROI)(PBT/Networth) |
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|
0.06 |
0.11 |
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Debt
Equity Ratio(Total Liability/Networth) |
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|
0.58 |
0.26 |
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Current
Ratio(Current Asset/Current Liability) |
|
|
4.91 |
4.43 |
LOCAL AGENCY
FURTHER INFORMATION
Encore Natural Polymers
Private Limited had its beginning in 1958 when INDIAN GUM INDUSTRIES LIMITED
also known as IGI was set up in Financial and Technical collaboration between
Merchant Family & Cesalpenia Group, of Italy.
In 1971 the American
Company Herculus Incorporated acquired the Cesalpenia Sharholdings in IGI. Then
in 1987 Herculus & Hankel decided to merge their water soluble polymers
divisions into a new corporation, Aqualon. At this time IGI became 100% Indian
Owned Company.
In 1999,
reorganization within the Merchant Family led to IGI Ahmedabad becoming encore
natural polymers private limited
And thus today's
encore came into existence.
Plant facility of
encore is situated in Western India in the city of Ahmedabad at the center of
state of Gujarat, State with highest natural growth and one of the leading
states of India. Ahmedabad city is connected to all major business centers of
roads, rails and airs having International Airport in line Container Depot and
regular connection to major Ports of Western India.
Encore is a pioneer in
the field of manufacturing value added native and derivatives polysaccharides
and has kept itself abreast in the emerging trends of Guar, Tamarind and other
natural polymers thickener applications in various sectors.
The quality of the
products speak for themselves through the impressive list of clients across the
globe in international markets like Japan, South Korea, China, Taiwan,
Indonesia, Thailand, Egypt, Iran, Germany, Belgium, USA and other European and
African countries.
Textile Industry
Encore Natural Polymers Private Limited, a wholly owned Indian Company
is leading manufacturer of "QUALITY TEXTILE PRINTING THICKENER" based
on Derivatives of Guar gum, Tamarind Kernal Powder and blend products in
different combination in varied Textile Printing application.
Encore was established in 1958. Based on their experience for more then
45 years, they improved their process and assure reliability and quality of
their products. Today they manufacture and sell Ethoxylated (Hydroxyethyl) Guar
& Tamarind, Propxylayed (Hydroxypropyl) Guar & Tamarind, Carboxymethyl
Tamarind, Hydrolyzed Guar & Tamarind, Borated Guar products under the brand
name of "Indrez" thickeners suitable for Polyester, Cotton, Silk, Nylon
and other Natural as well as Synthetic fabrics.
Indrez is a generic name of thickeners from encore used in Textile
Printing. Indrez® is available in various grades, suitable for all most all
kinds of dyestuffs, Polyester, Cotton, Silk, Nylon and other Natural as well as
Synthetic fabrics and also suitable for different printing styles – screens,
flatbed, rotary screen and roller.
Indrez has no reducing effect on dyes stuff and is normally unaffected
by the hardness of the water used in paste preparation. Colour penetration and
leveling are excellent. Even very sharp printing is possible without flushing.
Indrez is easily washable which results in fabrics with a full and soft handle.
The Viscosity of various grades of Indrez thickeners ranges from 3.00 % solids
to 15.00 % solids concentration depending on the application and style of
printing. The Viscosity of Indrez thickener are tailored to specific style and
or / method of printing through modification for different application. During
this modification total care is taken to improve solubility and purity of
thickeners to achieve the best possible results in most critical filtration
test. This enables Indrez to print even on very fine screens.
Product Range
Made To Suite For
INDREZ® HTA Series
Recommended and best suited for PES Direct printing. Specially developed
where fixation is done by high temperature steaming.
INDREZ® HWT Series
Recommended and best suited for PES Direct printing. Specially developed
where fixation is done either by High Temperature Steaming or High Pressure
Steaming.
INDREZ® HET Series
Recommended and best suited for PES discharge style printing using
Stannous chloride. Also best suited for Burnout printing using Sodium
Bisulfate.
INDREZ® GE Series
Recommended and best suited for Silk, Wool, and Nylon Fabrics either by
direct or discharge style. Also best suited for VAT discharge printing.
INDREZ® CB Series
Recommended and best suited for Acrylic Carpet and Acrylic Blanket
Printing.
INDREZ® GH Series
Specially Developed Cost effective thickener for Silk, Wool, and Nylon
Fabrics either by direct or discharge style.
INDREZ® HDL, HDN Series
Specially Developed for Reactive and African Prints
|
Name of the company |
ENCORE
NATURAL POLYMERS PRIVATE LIMITED |
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1) Date and description of instrument creating the change |
Agreement
of modification of charge dated 31.05.2002.
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs
63.500 Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Agreement
of modification of charge/ mortgage |
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5) Name and Address and description of the person entitled to the charge. |
Bank
of Baroda, International Business Branch Gen
Bhosale Marg, Nariman Point, Mumbai – 400021, Maharashtra, India |
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6) Date and brief description of instrument modifying the charge |
31.05.2002 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
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Name of the company |
ENCORE
NATURAL POLYMERS PRIVATE LIMITED |
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1) Date and description of instrument creating the change |
Agreement
of modification of charge for Hypothecation
of Plant and machinery, Stock in Trade, Book Debts, Vehicles dated
31.05.2006. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs
56.500 Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Agreement
of modification of charge for Hypothecation
of Plant and machinery, Stock in Trade, Book Debts, Vehicles |
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5) Name and Address and description of the person entitled to the charge. |
Bank
of Baroda, International Business Branch Gen
Bhosale Marg, Nariman Point, Mumbai – 400021, Maharashtra, India |
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6) Date and brief description of instrument modifying the charge |
31.05.2006 |
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Name of the company |
ENCORE
NATURAL POLYMERS PRIVATE LIMITED |
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Presented By |
BANK
OF BARODA, International Business Branch Nariman
Point, Mumbai – 400021, |
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1) Date and description of instrument creating the change |
Composite
Hypothecation agreement dated 06.02.2001 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs
56.500 Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
1] The
whole of the borrower’s stocks both present and future and including but
without prejudice to the generality of the foregoing words all stocks of raw materials,
work-in-process, semi finished goods and finished goods such as Guar and
other chemicals required for manufacturing various products meant for export,
packing materials and stores etc. whatsoever and wheresoever situate and/or
in transit whether now belonging to or that may at any time during the
continuance of this security belong to the borrower or that may be held by
any party anywhere to the borrower or that may be held by any party anywhere
to the order and disposition of the borrower. 2] All
the present and future book-debts, outstanding, monies receivables, claims,
bills, contracts, engagements and securities which are now due and owing or
which may at any time hereafter during the continuance of this security
become due and owing to the borrower in the course of its business by any
person, firm, company or body corporate or by the government of India or any
state government or Indian railways or any government department or office or
any municipal or local or public or semi – government body or authority
whatsoever including those relating to the assets out and/or given on hire
purchase basis. 3] all
the tangible movable machinery and plant and cranes, boats and crafts and the
vehicles of the borrower together with spares, tools and accessories and
other movables, both present and future and the furniture fixtures and
fittings and office equipment whether lying loose or in case which are now
lying loose or stores in or about or shall be brought into or be stored or be
in or upon or about the borrowers premises and godowns or wherever else the
same may be or be held by any party to the order or disposition of the
borrower (including those on lease or hire-purchase) relating or pertaining to the
borrower’s works at 227/222, Naroda Industrial Estate, Nroda, Ahmedabad |
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4) Gist of the terms and conditions and extent and operation of the charge |
The
charge is created to secure following credit facilities together with
interest/commission and margin :
|
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5) Name and Address and description of the person entitled to the charge. |
Bank
of Baroda, International Business Branch Foreshore
Building, Gen. Bhosale Marg, Opposite
Y B Chavan Marg, Nariman Point, Mumbai – 400021, Maharashtra, India |
|||||||||
|
6) Date and brief description of instrument modifying the charge |
Supplemental
Composite Instrument of Hypothecation of Goods, Book Debts, Moveable
machinery and Vehicles dated 31.05.2002 |
|||||||||
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The
charge is increased by Rs 7.000 Millions to cover following credit facilities
:
|
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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.44.24 |
|
UK
Pound |
1 |
Rs.86.95 |
|
Euro |
1 |
Rs.57.33 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
48 |
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/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 |
|