MIRA INFORM
REPORT
|
Report
Date : |
13.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
ELKAY CHEMICALS PRIVATE LIMITED |
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Registered
Office : |
4, Vinay Kunj, |
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Country
: |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
02.06.1986 |
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Com.
Reg. No.: |
11-39957 |
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CIN
No.: [Company
Identification No.] |
U24100MH1986PTC039957 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
PNEE01430C |
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PAN
No.: [Permanent
Account No.] |
AAACE5989K |
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Legal
Form : |
Private Limited Liability Company |
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Line
of Business : |
Manufacturing
and selling of silicone chemicals such as silicone fluids, emulsion antifoams
and other speciality items. |
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
290000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well – established company having
satisfactory track. Directors are reported as experienced, respectable and
having satisfactory track records. Trade relations are fair. Payments are
usually correct and as per commitments. The company can be considered good for any normal business
dealings at usual trade terms and conditions.
|
LOCATIONS
|
Registered
Office : |
4, Vinay
Kunj, |
|
Tel.
No.: |
91-20-27122407
/ 3154 |
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Fax No.: |
91-20-27121526 |
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E-Mail
: |
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Website
: |
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Head Office: |
1-C & 1-D, Prabhat House, Law College Road, Damie
Path, Erandwane, District Pune - 411 004, Maharashtra |
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Tel.
No.: |
91-20-22336570
/ 22332948 |
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Fax
No.: |
91-20-22362896 |
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Corporate
Office : |
J –152,
MIDC, Bhosari, Pune – 411026 |
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Tel.
No.: |
91-20-27122407/27123154/27129854 |
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Fax
No.: |
91-20-27121526 |
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E-Mail
: |
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Branches
: |
Plot no. 72, |
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Tel.
No.: |
91-261-8872211 |
DIRECTORS
|
Name : |
Mr. A K Lokapur |
|
Designation
: |
Chairman |
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|
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|
Name : |
Dr.
Ravindra D. Kulkarni |
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Designation
: |
Director |
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Date
of Birth/Age : |
66 years |
|
Qualification
: |
Ph.D.
(Chem.) |
|
Experience
: |
28 years |
|
Previous Employment |
Ř
IBM - Union Carbide and Exxon Ř
Physical Lab., |
BUSINESS
DETAILS
|
Line
of Business : |
Manufacturing
and selling of silicone chemicals such as silicone fluids, emulsion antifoams
and other speciality items. |
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|
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Products
: |
Silicone fluid Emulsions |
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Exports
to : |
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Imports
from : |
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Terms
: |
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Selling : |
Contract (30 days), Cash or L/C terms |
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Purchasing : |
Contract (30 days), Cash or L/C terms |
PRODUCTION STATUS
|
Particulars |
|
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Installed Capacity |
Actual Production |
|
|
|
|
1800.00 MT |
1491.18 MT |
GENERAL
INFORMATION
|
Customers
: |
v
TTK Biomed Limited, Chennai, Tamilnadu v
J. K. Industries Limited, v
Apollo Tyres Limited, v
Hindustan Latex Limited, v
Parke Davis ( v
Mahindra and Mahindra Limited, Mumbai v
Dyna Tyres, v Dyna Tyres, |
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No. of
Employees : |
60 |
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Bankers
: |
v State Bank of v HDFC Bank, Pune |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors
: |
RSM & Company Chartered Accountant |
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Associates/Subsidiaries
: |
Lokapur
Holdings Private Limited ` Arklite
Speciality Lamps Limited It is a newly formed company. Manufacturing
speciality lamps like studio lighting, halogens etc. |
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|
|
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
2,000,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 20.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
1,935,388 |
Equity Shares |
Rs. 10/- Each |
Rs. 19.353 Millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
19.353 |
19.353 |
12.000 |
|
|
2] Share
Application Money |
10.000 |
10.000 |
10.000 |
|
|
3]
Reserves & Surplus |
44.359 |
34.556 |
9.767 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
73.712 |
63.909 |
31.767 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
60.952 |
29.354 |
22.840 |
|
|
2]
Unsecured Loans |
4.863 |
5.304 |
4.797 |
|
TOTAL
BORROWING
|
65.815 |
34.658 |
27.637 |
|
|
DEFERRED
TAX LIABILITIES |
4.807 |
5.380 |
5.007 |
|
|
Government
Grant |
0.598 |
0.000 |
0.000 |
|
|
|
|
|
|
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TOTAL
|
144.932 |
103.947 |
64.411 |
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
45.620 |
36.331 |
25.582 |
|
Capital work-in-progress
|
0.464 |
0.084 |
0.084 |
|
|
|
|
|
|
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INVESTMENT
|
19.780 |
11.350 |
4.641 |
|
DEFERREX TAX ASSETS
|
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|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
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Inventories
|
44.249
|
20.791 |
17.398 |
|
|
Sundry Debtors
|
40.300
|
30.931 |
37.982 |
|
|
Cash & Bank Balances
|
0.887
|
1.558 |
0.437 |
|
|
Other Current Assets
|
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances
|
31.858
|
19.717 |
5.133 |
Total Current Assets
|
117.294
|
72.997 |
60.950 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
37.453
|
16.978 |
27.901 |
|
|
Provisions
|
1.695
|
1.780 |
1.910 |
Total Current Liabilities
|
39.148
|
18.758 |
29.811 |
|
Net
Current Assets
|
78.146
|
54.239 |
31.139 |
|
|
|
|
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MISCELLANEOUS EXPENSES
|
0.922 |
1.943 |
2.965 |
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|
|
|
|
|
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TOTAL
|
144.932 |
103.947 |
64.411 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
200.675 |
143.274 |
116.439 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
12.604 |
7.298 |
3.999 |
Provision for Taxation
|
0.000 |
0.000 |
2.371 |
Profit/(Loss) After Tax
|
12.604 |
7.298 |
1.628 |
|
|
|
|
|
Export Value
|
NA |
45.327 |
13.322 |
|
|
|
|
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Import Value
|
NA |
42.815 |
32.470 |
|
|
|
|
|
Expenditures
:
|
|
|
|
Interest
|
3.893 |
2.470 |
|
Depreciation
|
2.507 |
1.860 |
112.440 |
Other Expenses
|
181.671 |
131.646 |
|
Total
Expenditure
|
188.071 |
135.976 |
112.440 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
6.28
|
5.09 |
1.39 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
6.28
|
5.09 |
3.43 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
7.74
|
6.67 |
4.62 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.17
|
0.11 |
0.12 |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
1.42
|
0.83 |
1.80 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
2.99
|
3.89 |
2.04 |
LOCAL
AGENCY FURTHER INFORMATION
It is in
trade terms with:-
v
Rhodia
Chemicals India Limited
v
Gemini
Venture Corporation,
v
Spack
Organics, Mumbai
v
Wacker-Metroark
India Limited
v
BASF
(
v
India
Glycol Limited, Mumbai
v
Dai
Ichi Karkaria Limited, Mumbai
v
Ge
Plastics B. V.,
v
v
OSI
Specialities,
v
Degusa
AG,
Business:
The company mobilized over Rs. 27.600 Millions during
October 2004 through a preferential of shares at the rate of Rs. 37.71 per
shares
The performance of M/s. Silicone International products has
improved substantially during the last quarter of the year. The company has
been regular in meeting all its financial commitments to creditors employees,
banks and authorities. The company fully repaid its pending Term Loan and
Converted the factoring limits to cash credit
facility to reduce the effective cost of borrowing.
Sales volume growth momentum which was witnessed during the
previous year. Sales volume increased by 80% with relatively stable price.
Shipment volume of emulsions increased by over 30% most notable has been 240%
increased in Export resulting in the company becoming a net foreign exchange
earner for the first time.
The company has chalked out an expansion – cum-
modernization program to raise the fluids processing capacity by 25% by 200%
during 2005-06 The plant is being to conform to the international standers. The
directors expect the project to be
completed by January – 2006
During April, 2005 M/s. RWTUV India has renewed the
ISO-9001:2000 Certification for a further period of years.
Fixed
assets
v
Leasehold
land
v
Office
equipments
v
Building
v
Plant
& machinery
v
Computer
v
Laboratory
equipments
v
Vehicles
v
Furniture
& fixtures
As per website Details:
Subject is a 14-year old, profitable, Specialty Silicones
manufacturing Company with annual processing capacity of 3 mn lbs of Silicone Fluids,
and 3 mn lbs of Emulsions with a strong market presence in over 10 countries.
Subject is a professionally run ISO 9001: 2000 company with
a strong emphasis on business ethics, market focus, technology leadership and
quality standards.
Silicones find applications in contraceptives,
pharmaceuticals, textile finishing, rubber & tyres, petrochemicals,
construction, reprographics and personal care industries. Subject has a strong
presence all over
Subject continues to be a highly focused Silicones company,
emphasizing on value-added specialty applications. Subject takes pride in
working closely with key customers to develop and customize products as per
specific individual requirements.
Over the years, Subject has demonstrated that it can
participate in the World market with its consistent quality, competitive
pricing, technical support and committed delivery schedules.
Subject brand has come to be recognized and respected by
customers all over the World.
Contraceptive
Subject has been an approved supplier of Lubricating Oil
Silicone Fluid 350 cps over the past decade. Subject provides the necessary skin
irritation and toxicity test certificates from independent laboratories.
Construction
Silicones provide excellent coverage for micro cracks in
exterior plasters, thereby extending the longevity of paints, and protecting
the structure from rains, sultry weather, fungus and moss. The formulation has
been found to be particularly effective for asbestos sheets and pre-fab cement
slabs. Subject can offer products that are solvent-dilutable, as well as
water-dilutable.
Chemical Process
Chemical Process description goes here
Personal Care
The Indian personal care products industry is dominated by a
handful of multi-national companies where entry barriers are very steep. The
consumption of shampoo, soaps, hair oil, fabric softener, sun-screen lotions
has shown healthy growth rates due to large middle class population in
v
Laundry
Pharma
v
Release
Speciality
Speciality Description Goes Here.
v
Shine
v
Grease
v
Damping
Tyre & Rubber
Silicone is the preferred Release Agent for most of rubber
and tyres industry due to its easy handling & transportation, long shelf
life and environment-friendly nature. With close technical interactions, ELKAY
has developed certain customised products for select tyre companies. The PVC
industry in
Textile
Subject has been a dominant player in the Textile Finishing
formulations market in
v
Release
v
Softners
v
Laundry
TECHNOLOGY
SERVICES:
Contract
Manufacturing, Tolling & Job Work
Product
Development:
v Product design & evaluation
v Optimization & process flowsheet
development
v Yield & process economics
analysis
Process
Development/Pilot Plant:
v Bench scale process development
& evaluation
v Process scale up & flowsheet
development
v Pilot scale process optimization
& costing
v Data analysis & report
generation
Laboratory
Support/Services:
Product
characterization, chemical analysis & literature information
Physical
properties analysis
Report
generation
INFRASTRUCTURE:
Manufacturing:
1-5000 kg.
batch size capability
Indian FDA
(Pune) approved facility
GMP
operation (Pune)
Plants
located in Pune, Mumbai and Ahmedabad in
Total land
approximately 14 acres (three locations)
Equipment:
Plant
reactors:
Glass lined
reactors SS reactors
3000 Ltr. 1 Nos. 7000 Ltr. 1
No.
2000 Ltr. 3 Nos. 3000 Ltr. 1
No.
800 Ltr. 2 No. 2500 Ltr. 1 No.
1500 Ltr. 1 No.
1000 Ltr. 1 No.
500 Ltr. 1 No.
350 Ltr. 1 No.
Adequate
blending, formulation & storage facilities are provided in the plants
Adequate
utilities available such as boilers, cooling towers, chilling plant, brine
cooling plant, compressed air, nitrogen, vacuum, etc.
Laboratory
Capacity:
v
Well
equipped laboratory for process and quality control of all relevant materials
v
Fully
equipped laboratory with 50 Ltr. glass reactor for pilot reactions.
v
Highly
qualified professionals experienced in R&D, QC/QA and project management.
v
UV,
GC, HPLC, Karl Fisher,
v
Wet
analytical chemistry laboratory.
Technology/Processes:
v
Amination
v
Anionic/cationic
polymerization
v
Antifoam/defoamer
compounding
v
Compounding
of silicones
v
Continuous
polymerization
v
Emulsification
v
Emulsion
polymerization
v
Equilibration
v
Esterification/trans-esterification
v
General
organic laboratory synthesis
v
Hydrolysis
v
Hydrosilation
v
Nitration
v
Oxidation/reduction
v
Quaternization
v
Silicone
surfactants
v
Synthesis
of amino/epoxy /carboxy silicones
ACCOMPLISHMENTS:
v
Developed
and commercialized over 60 specialty chemical products over the past 8 years
v
DMPS/functional
silicones polymerization technology and its commercialization
v
Silicone-carbon
bond creation through hydrosilation technology for the first time in
v
Equilibrated
methyl hydrogen fluid manufacturing via continuous polymerization
v
Silicone
block-copolymers for textile industry
v
Tailor-made
silicone polymers for prophylactics, tire, textile, construction & rubber
industries
v
Development
of acrylate ester-based pour point depressant for off-shore crude oil transport
v
Toll
manufacturing of functional silicones for a multi-national company
v
Custom
manufacturing of silicones for various outside companies
CURRENT
PROJECTS:
v
Bulk
drug intermediates
v
Custom
formulations for textile fabric/garment finishing operation
v
Development
of mono-dispurse high viscosity silicone fluid anionic emulsions
v
Personal
care products
v
Polyelectrolytes
v
Polyurethane-based
formulation for textile industry
v
Sealants
for construction and engineering industries
v
Silicone
antifoam for petrochemical industry
v
Silicone
surfactant for petrochemical industry
v
Silicone
surfactant for polyurethane industry
v
Water
treatment chemicals
AFFILIATIONS
v
v
UDCT
(University Department of Chemical Technology), Mumbai,
v
National
Chemical Laboratory,
v
Engineering
Research Consortium,
v
Department
of Science & Technology, Government of
v
"Textile
Finishing Fundamentals" and "Surface Chemistry of Fabric Care"
Supported by
Zero Defect Know-How
The
entire product and process for the manufacture of Silicon fluids has been
developed through in-house R&D efforts. Subject has established a
full-fledged research, development, design and engineering laboratory which has
accredited to the Department of Science and Industrial Research,
Moreover,
every product developed goes through extensive site testing with selected
customers before being introduced in the market.
CMT
REPORT [Corruption,
Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts,
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.40.47 |
|
|
1 |
Rs.82.08 |
|
Euro |
1 |
Rs.55.74 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
|
47 |
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
|
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 |