MIRA INFORM REPORT

 

 

Report Date :

11.07.2007

 

IDENTIFICATION DETAILS

 

Name :

EXPANDED INCORPORATION

 

 

Registered Office :

C-44 / 1 & 2, TTC Area, MIDC, Pawne, Vashi, Navi Mumbai – 400 705, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007 (Provisional)

 

 

Date of Incorporation :

06.12.1982

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUME00833 A

 

 

PAN No.:

[Permanent Account No.]

AAAFE0142M

 

 

Legal Form :

A Partnership Concern with an Unlimited Liability of the Partners

 

 

Line of Business :

Manufacturer, Importer, Exporter and Marketing Agents.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 590000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established concern having satisfactory track.  Partners are reported as experienced, respectable & resourceful businessmen. Trade relations are fair.  Payments are usually correct and as per commitments.  The concern can be considered good for normal business dealings at usual trade terms and conditions.  This report is based on an interview with Mr. Chetan Shah of the concern.

 

 

LOCATIONS

 

Registered Office / Head Office / Factory :

C-44 / 1 & 2, TTC Area, MIDC, Pawne, Vashi, Navi Mumbai – 400 705, Maharashtra, India

Tel. No.:

91-22-27670838 / 27670839 / 27680303 / 27680404

Mobile No.:

91- 9820231323

Fax No.:

91-22-27671065

E-Mail :

expanded.inc@vsnl.com, admin@expandedinc.com

Location :

Owned

 

 

PARTNERS

 

Name :

Mr. Mukesh S. Bhuta

Designation :

Partner

Date of Birth/Age :

53 years

Qualification :

Science Graduate

Experience :

 24 years

 

 

Name :

Mr. Vaman J. Mehta

Designation :

Partner

 

 

Name :

Mrs. Jayashree A. Bhuta

Designation :

Partner

 

 

 

w.e.f. 01 / 04 / 2007

Name :

Mr. Ajit Shantilal Bhuta

Designation :

Partner

 

 

Name :

Mr. Harsh Vaman Mehta

Designation :

Partner

 

 

Name :

Ms. Hema Chetan Shah

Designation :

Partner

 

 

Name :

Ms. Medha Mukesh Bhuta

Designation :

Partner

 

 

 

KEY EXECUTIVES

 

Name :

Mr. Mukesh S. Bhuta

Designation :

Partner

Address :

53 years

Qualification :

Science Graduate

Experience :

24  years

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Importer, Exporter and Marketing Agents.

 

 

Exports to :

Middle East countries, Singapore and South Africa.

 

 

Imports of  :

Chemicals

 

 

Imports from :

U.K., U.S.A., Germany, Japan, Singapore and Hong Kong

 

 

Terms :

 

Purchasing :

L / C terms

 

PRODUCTION STATUS

 

Particulars

 

 

 

Installed Capacity

 

 

 

 

6000 tonnes p.a.

 

 

GENERAL INFORMATION

 

Customers :

v      Shivathene Linopack Limited

v      Shivalik Agro Poly Products Limited

v      M H Polymers Private Limited

v      Forace Polymers Private Limited

v      EPCOS India Private Limited

v      IVP Limited

v      Prince Plastics International Private Limited

v      Godrej & Boyce Manufacturing Company Limited

v      C J Shah & Company

v      K Rasiklal Exim Private Limited

v      Cray Valley Resins India Private Limited

v      Visen Industries

v      Supreme India International

v      J Kirit & Brothers

v      Speciality Industrial Polymers & Coatings Private Limited

 

 

No. of Employees :

80 (Office – 40; Factory – 40)

 

 

Bankers :

Bank of India, Desai Niwas, M. G. Road, Ghatkopar (west), Mumbai – 400 086, Maharashtra, India.

 

 

Facilities :

It enjoys cash credit of Rs. 80.00 millions, aggregate facility of Rs.70.00 millions, L/C facility of Rs.110.00 millions and term Loan facility of Rs.15.00 millions from its Bankers.

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

N. A.

 

 

CAPITAL STRUCTURE

 

 

Capital Investment :

 

Owned :

Rs. 92.432 millions

Borrowed :

-

Total :

Rs. 92.432 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

(Provisional)

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Partners Capital

129.322

118.292

92.433

2] Capital Reserves

18.760

18.760

18.760

NETWORTH

148.082

137.052

111.193

LOAN FUNDS

 

 

 

1] Secured Loans

81.788

90.539

79.103

2] Unsecured Loans

9.685

7.337

6.637

TOTAL BORROWING

91.473

97.876

85.740

 

 

 

 

TOTAL

239.555

234.928

196.933

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

103.871

99.535

83.054

Capital work-in-progress

5.819

0.710

-

 

 

 

 

INVESTMENT

-

-

-

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

41.851

54.503

62.449

 

Sundry Debtors

157.688

140.046

110.870

 

Cash & Bank Balances

15.561

21.000

11.679

 

Loans & Advances

19.569

21.532

13.511

Total Current Assets

234.669

237.081

198.509

Less : CURRENT LIABILITIES & PROVISIONS

104.804

102.398

84.630

Total Current Liabilities

104.804

102.398

84.630

Net Current Assets

129.865

134.683

113.879

 

 

 

 

MISCELLANEOUS EXPENSES

-

-

-

 

 

 

 

TOTAL

239.555

234.928

196.933

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

(Provisional)

31.03.2006

31.03.2005

Sales Turnover

701.583

656.413

521.864

Commission

6.644

7.695

-

Other Income

5.360

3.309

-

Total Income

713.588

667.417

521.864

 

 

 

 

Profit Before Tax

25.329

27.976

39.481

Provision for Taxation

-

-

-

Profit After Tax

25.329

27.976

39.481

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing & Assets Maintenance

27.445

23.863

NA

 

Administrative Expenses

18.256

14.955

NA

 

Raw Material Consumed

573.255

533.589

NA

 

Personnel

25.481

22.364

NA

 

Selling & Distribution Expenses

3.277

6.627

NA

 

Depreciation & Amortization

11.000

12.020

NA

 

Finance Cost

29.545

26.023

NA

Total Expenditure

688.259

639.441

NA

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

(Provisional)

31.03.2006

31.03.2005

PAT / Total Income

(%)
3.54

4.19

7.57

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
3.54

4.19

7.57

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
7.48

8.31

14.02

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.17

0.20

0.36

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.32

1.46

1.53

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.24

2.32

2.35

 

 

LOCAL AGENCY FURTHER INFORMATION

 

The concern is in trade terms with:

 

¨       Lloyds (India) Limited

386, V. Savarkar Marg, Mumbai – 400 025, Maharashtra, India.

¨       Bayer AG, Germany

¨       Bayer India Limited, Express Towers, Nariman Point, Mumbai – 400 021, Maharashtra, India

¨       Godrej & Boyce Manufacturing company Limited, Vikroli, Mumbai

¨       Videocon International Limited Mumbai

¨       Videocon Appliances Limited, Mumbai

¨       Whirlpool India Limited, Faridabad, Haryana

¨       Whirlpool India Limited, Pune, Maharashtra

¨       Blue Star Limited, Mumbai

 

Membership:

     

¨       Bombay Chamber of Commerce

¨       All India Plastic manufacturers Association

¨       Bombay Industries Association

¨       Indo Italian Chamber of Commerce

¨       Indo German Chamber of Commerce

 

Website Details :

 

Subject is located at Pawne Industrial Area, 25 kms from Mumbai City. They are an industry leader in Polyurethane Technologies owing to their path-breaking Research & Development efforts. Their scientists have indigenously developed various types of polyols and formulations for diverse industry segments from refrigeration to automotive to packaging. It is the preferred supplier for top-end industries like Refrigerators and General Insulation. They have also played a very significant role in the ‘CFC Phase Out’ programme.

 

Their chemicals business is well complemented by the marketing of Polyurethane foam processing equipment from Cannon of Italy, as its sole distributor in India. Their machinery division has been augmented with Marketing Agencies for Polyurethane and Plastic processing and allied machinery from world-renowned companies.

 

Facilities

 

Expanded Incorporation is the first and only Polyurethane System House in India, having ultramodern in-house facilities using state-of-the-art technology for producing both polyether and polyester polyols as well as blended polyurethane systems. Their production facilities are housed in three adjacent plants, ensuring optimum proficiency in manufacturing and quality-control. Innovation covering the enhancement of both products and production technology is an ongoing process at Expanded.

 

PRODUCTS & SERVICES

 

Expanded Incorporation’s activities cover manufacture of base Chemicals for manufacturing polyurethanes and marketing of top of the line PU-processing Machinery.

 

PU Chemicals

 

Polyether polyols

 

These are manufactured from alkylene oxides. Their polyether polyols, are marketed under the brand names of Exapol. Though specialized in short chain polyether, other polyols are also manufactured for specific applications, largely for in-house consumption.

 

 

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. 40.38

UK Pound

1

Rs. 81.88

Euro

1

Rs. 55.52

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

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

>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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions