MIRA
INFORM REPORT
|
Report Date : |
29th
January, 2007 |
IDENTIFICATION
DETAILS
|
Correct Name : |
SANMAR
GROUP INTERNATIONAL LIMITED |
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Formerly known as : |
CHEMPLAST
CHLOROCHEMICALS LIMITED |
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Registered Office : |
9,
Cathedral Road, Chennai – 600 086, Tamilnadu, India |
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Country : |
India |
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Financials (as on) : |
19.10.2006 |
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Date of Incorporation : |
28.03.2002 |
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Com. Reg. No.: |
18-48677 |
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CIN No.: [Company
Identification No.] |
L24119TN2002PLC048677 |
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Legal Form : |
A
Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer,
Sale and Trading in various Chloro based and other chemicals. To
manufacture, purchase, import, export, sell, distribute, stock deal, test and
trade in chloroine, caustic soda, chloromethanes, trichloroethylene,
refrigerant gases, hydrogen, silicon ingots, silicon wafers, ethyl silicate,
bromine, polysilicon, silicon tetrachloride and allied chemicals and
manufacturer and sale of the bye products and intermediates of all kinds of
therefrom. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
-- |
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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 new company of Sanmar Group and started business recently. Directors are
reported as experienced and respectable businessmen. Trade relations are
fair. 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 : |
9,
Cathedral Road, Chennai – 600 086, Tamilnadu, India |
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Tel. No.: |
91-44-28118500/
28128722 |
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Fax No.: |
91-44-28112624 |
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E-Mail : |
DIRECTORS
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Name : |
Mr.
Pavattakudi Sundaresan Jayaraman |
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Designation : |
Director
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Address : |
Flat
No. B 2, Ashok Aishwaryam, New No. 13 (Old No. 3), Habi Bullah Road, T Nagar,
Chennai – 600 017, Tamilnadu, India |
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Date of Birth/Age : |
08.05.1950 |
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Date of Appointment : |
28.03.2002 |
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Name : |
Mr.
Venkatarmanan Ramesh |
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Designation : |
Director
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Address : |
Plot
No. 2, Anmol Garden, 66/1, Naidu Street, Kottur, Chennai – 600 085,
Tamilnadu, India |
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Date of Birth/Age : |
31.12.1949 |
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Date of Appointment : |
23.04.2003 |
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Name : |
Mr. V
V Subramanian |
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Designation : |
Director
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Address : |
Ashoka
Sundaram, 43, 3rd Floor, III Main, R A Puram, Chennai
– 600 028, Tamilnadu, India |
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Date of Birth/Age : |
19.07.1955 |
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Date of Appointment : |
12.03.2004 |
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Name : |
Mr.
Vadakanchery Subramanian Ramesh |
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Designation : |
Director
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Address : |
Flat
No. F-12, Phase I, Jain Aasiana, 1, Vembuliamman Koil Street, Virugambakkam,
Chennai – 600 092, Tamilnadu, India |
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Name : |
Mr. V
H Subramaniam |
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Designation : |
Director
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Address : |
Flat
No. F-12, Phase I, Jain Aasiana, 1, Vembuliamman Koil Street, Virugambakkam,
Chennai – 600 092, Tamilnadu, India |
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Date of Birth/Age : |
14.07.1966 |
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Date of Appointment : |
30.06.2006 |
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Other Directorships : |
Chemplast
Sanmar Aromatics Limited – Director |
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Name : |
Mr.
Balasubramanian Natraj |
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Designation : |
Additional
Director |
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Address : |
A-5,
Sucharita, New No. 124, old No. 71, Chamiers Road, R A Puram, Chennai – 600
028, Tamilnadu, India |
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Date of Birth/Age : |
03.10.1946 |
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Date of Appointment : |
18.10.2006 |
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Other Directorships : |
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Name : |
Mr.
Pappakudi Krishnaswamy Umashankar |
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Designation : |
Additional
Director |
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Address : |
C-1,
Srinivas, New No. 8, Bazullah Road, T Nagar, Chennai – 600 017, Tamilnadu,
India |
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Date of Birth/Age : |
26.06.1958 |
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Date of Appointment : |
18.10.2006 |
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Other Directorships : |
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Name : |
Mr.
Subbaiah Sankaran |
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Designation : |
Additional
Director |
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Address : |
2/1,
IV Street, Balaji Nagar, Chennai 600 014, Tamilnadu, India |
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Date of Birth/Age : |
07.05.1954 |
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Date of Appointment : |
18.10.2006 |
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Other Directorships : |
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MAJOR SHAREHOLDERS
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Names
of Shareholders |
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No. of Shares |
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Chemplast
Sanmar Limited |
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24994 |
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Mr. N
Sankar |
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1 |
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Mr.
Vijay Sankar |
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1 |
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Mr. P
S Jayaraman |
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1 |
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Mr. S
Sankaran |
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1 |
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Mr. P
U Aravind |
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1 |
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Mr V S
Ramesh |
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1 |
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Sanmar
Holdings Limited |
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25000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer,
Sale and Trading in various Chloro based and other chemicals. To
manufacture, purchase, import, export, sell, distribute, stock deal, test and
trade in chloroine, caustic soda, chloromethanes, trichloroethylene,
refrigerant gases, hydrogen, silicon ingots, silicon wafers, ethyl silicate,
bromine, polysilicon, silicon tetrachloride and allied chemicals and
manufacturer and sale of the bye products and intermediates of all kinds of
therefrom. |
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Products : |
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GENERAL
INFORMATION
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Bankers : |
Not
Available |
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Auditors : |
Prasad
and Srinath Chartered
Accountants 2nd
Floor, No. 199 (Old No. 89), TTK Road, Alwarpet, Chennai – 600 086,
Tamilnadu, India Price
Waterhouse and Company Chartered
Accountants 32,
Khader Nawaz Khan Road, Nungambakkam, Chennai – 600 006, Tamilnadu, India |
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Associates : |
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Holding Company : |
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CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
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200000 |
Equity
Shares |
Rs. 10/- |
Rs. 2.000 millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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|
200000 |
Equity
Shares |
Rs. 10/- |
Rs. 2.000 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
19.10.2006 (7 months) |
31.03.2006 (12 months) |
31.03.2005 (12 months) |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2.000 |
0.500 |
0.500 |
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2] Reserves & Surplus |
598.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
(0.047) |
0.000 |
0.000 |
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NETWORTH |
599.953 |
0.500 |
0.500 |
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LOAN FUNDS |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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TOTAL |
599.953 |
0.500 |
0.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
0.000 |
0.000 |
0.000 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
599.500 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Cash & Bank Balances |
0.458
|
0.459 |
0.461 |
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Total Current Assets |
0.458
|
0.460 |
0.461 |
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Less : CURRENT LIABILITIES & PROVISIONS |
0.005
|
0.000 |
0.000 |
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Total Current Liabilities |
0.005
|
0.000 |
0.000 |
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Net Current Assets |
0.453
|
0.460 |
0.461 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.040 |
0.039 |
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TOTAL |
599.953 |
0.500 |
0.500 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
|
19.10.2006 (7 months) |
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Sales Turnover [including other income] |
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NA |
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Profit/(Loss)
Before Tax |
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(0.006) |
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Provision
for Taxation |
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|
0.000 |
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Profit/(Loss)
After Tax |
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(0.006) |
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Total
Expenditure |
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|
0.006 |
KEY
RATIOS
|
PARTICULARS |
|
19.10.2006 (7 months) |
31.03.2006 (12 months) |
31.03.2005 (12 months) |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
(0.001)
|
-- |
-- |
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Return
on Investment (ROI) (PBT/Networth) |
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(0.00)
|
-- |
-- |
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Debt
Equity Ratio (Total
Liability/Networth) |
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1.00
|
1.00 |
1.00 |
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Current
Ratio (Current
Asset/Current Liability) |
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91.60
|
0.00 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
About Group
The Sanmar Group, with its corporate
headquarters at Chennai, the capital city of Tamilnadu State in South India,
has set the benchmark for global partnerships in niche technology areas.
The group has significant or majority
holdings in all its businesses.
These businesses are grouped and managed in
industry segments as follows:
Professionally Managed
Sanmar’s businesses are professionally
managed, thanks to the group’s ability to attract, motivate and retain high
calibre staff. Ownership and management have been separated through a series of
top level initiatives, including the formation of a broadbased, empowered Group
Corporate Board, which oversees all businesses, including strategies and
policies. The businesses are managed by professional managing directors, with
highly qualified managers working under them.
Group Strengths
The Sanmar Group has over three decades of
experience in running and managing a large industrial organisation with
multiple businesses.
The group’s innate strengths include:
·
An
ability to source, assimilate and apply complex technologies in different
fields.
·
Leading
edge HR practices and a reputation as a preferred employer
·
A
high level of IT integration with an SAP ERP platform across businesses
·
A
global outlook highlighted by successful JVs with world leaders, and a high
level of cross border trade
Blazing a trail
The group entered into its first
international joint venture back in the 1960s when it started Chemicals and
Plastics India Limited to manufacture PVC resins in joint venture with B F
Goodrich of the USA.
Today, it has a turnover of over Rs.13
billion and a presence in some 25 businesses, with manufacturing units spread
over numerous locations in India.
Characterised by strong and conservative
financial practices, it has a track record of steady growth and consistent
profitmaking over the last three decades, enjoying an excellent reputation in
the financial markets. The group is known for its high ethical standards and
healthy respect for intellectual property rights.
Joint Ventures
A unique feature of the Sanmar group is that it has several successful
joint venture relationships with leading international partners, both large
corporations belonging to the Fortune 500 and small companies operating in niche
technology areas. Many of these joint ventures are long standing ones with some
close to 30 years. Sanmar’s success in establishing and managing joint venture
relationships has been recognised and its Chairman, N Sankar has been asked to
speak at different fora on the principles the group has adopted to operate
these joint ventures and promote continuing and successful interaction between
the partners. The following extracts from these would highlight Sanmar’s
philosophy in addressing joint venture management.
- The
necessity for both partners to accept that their gains will flow only from
the gains of the joint venture.
The joint venture should not be a vehicle by which either Partner harvests
profits for itself – by selling agency arrangements or preferential price
supplies or by off-loading unrelated expenses/ by charging corporate
overheads.
- Both
partners should appreciate the need for the joint venture. At any time that one partner feels that
the other is superfluous, then the end is in sight. There should be free
and transparent flow of information on product developments, access to
technology, technical and marketing support and all managerial and
business support to the joint venture, even if it were only a small
business.
- The
partners should clearly agree on the way the joint venture will be
managed. The Primary
operational management should be with one of the partners, who will be
accountable to the other.
- It
is important that both partners work towards a system based on trust and
transparency. Obviously, when
the joint venture is set up, a legal document replete with do’s and dont's
has to be drawn up, but if that document has to be referred to frequently
to decide who can do what, then it means that there is something wrong.
- For the on-going
operations there should be appropriate interaction at different functional
levels. For managerial decision-making on important issues that call for
the involvement of both partners, there should be a clearly defined high
level contact at either end.The
important thing here is the level of comfort on such ‘important’
consultations.
- To
make for the long term success of the joint venture, it is also important
that both partners are equally able to service its growing need for
capital as the business expands.......support the joint venture with capital and other financial and
managerial resources and should also clearly agree to share the
responsibility for losses.
Contacts
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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 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.44.27 |
|
UK
Pound |
1 |
Rs.86.71 |
|
Euro |
1 |
Rs.57.13 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
38 |
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 |
|