MIRA
INFORM REPORT
|
Report Date : |
24.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
INDO BRINE INDUSTRIES LIMITED |
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Registered Office : |
Survey No. 282, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.11.1996 |
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Com. Reg. No.: |
04-31160 |
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CIN No.: [Company
Identification No.] |
U51100GJ1996PLC031160 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RKTI00186E |
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PAN No.: [Permanent
Account No.] |
AAACI4654H |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturers and
Suppliers of Refined Free Flow Iodized Salt |
RATING & COMMENTS
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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 : |
USD 79000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track.
Company’s profitability is under severe pressure. It has some accumulated
losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office : |
Survey No. 282, |
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Tel. No.: |
91-2836-231295 |
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Mobile No.: |
91 – 9426730384 / 9426217225 / 9426730414 |
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Fax No.: |
91-2836-231586 |
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E-Mail : |
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Website : |
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Factory: |
"Agrawal's House", Plot No-356, Ward 12-B, Gokul
Park, Tagore Road, Gandhidham (Kutch) – 270301, Gujarat, India |
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Tel. No.: |
91
– 2836 – 231295 / 231711
/ 2837-282515 / |
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Fax No.: |
91 – 2836 – 231586 |
DIRECTORS
|
Name : |
Mr. Gupta Mahesh N |
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Designation : |
Director |
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Address : |
Plot No. 186, Sector 4, Gandhidham – 370201 |
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Date of Appointment : |
31.10.1996 |
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Date of Ceasing : |
25.08.2005 |
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Name : |
Mr. Agrawal Satyanarayan A |
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Designation : |
Director |
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Address : |
Plot No. 121, Sector 4, Gandhidham – 370201 |
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Date of Birth/Age : |
13.11.1955 |
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Date of Appointment : |
31.10.1996 |
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Date of Ceasing : |
22.07.2005 |
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Name : |
Mr. Jalavadia Jayantilal G |
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Designation : |
Director |
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Address : |
“Kalrav” |
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Date of Appointment : |
19.08.2002 |
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Name : |
Mr. Pranav N Agrawal |
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Designation : |
Director |
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Address : |
Plot No. 96, Sector 4, gandhidham – 370201 |
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Date of Birth/Age : |
01.08.1984 |
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Date of Appointment : |
11.07.2005 |
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Name : |
Mr. Sahil Subhash Garg |
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Designation : |
Director |
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Address : |
C/O Agarwal Roadlines Private Limited, 1203, GIDC Ranoli, |
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Date of Birth/Age : |
12.08.1980 |
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Date of Appointment : |
22.07.2005 |
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Name : |
Mr. Jatin S Agarwal |
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Designation : |
Director |
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Address : |
Plot No. 121, Sector 4, Gandhidham – 370201 |
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Date of Birth/Age : |
11.05.1980 |
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Date of Appointment : |
22.07.2005 |
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Name : |
Mr. Dinesh M Agarwal |
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Designation : |
Director |
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Address : |
Plot No 115, Sector 4, Gandhidham – 370201 |
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Date of Birth/Age : |
03.09.1966 |
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Date of Appointment : |
22.07.2005 |
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Name : |
Ms. Veenaben S Agarwal |
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Designation : |
Director |
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Address : |
Plot No. 119, Sector 4, Gandhidham 370201 |
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Date of Birth/Age : |
01.10.1966 |
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Date of Appointment : |
22.07.2005 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Satyanarayan Atmaram Agarwal |
|
675200 |
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Narsingh Atmaram Agarwal |
|
195000 |
|
Rajesh Atmaram Agarwal |
|
584000 |
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Mahesh Nauratmal Gupta |
|
561000 |
|
Vax Housing Finance Corporation Limited |
|
150000 |
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Sonal Cosmetics Exports Limited |
|
400000 |
|
Kor India Engineering Company Limited |
|
50000 |
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Sheetal Securities Finance Limited |
|
100000 |
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Dinesh Motilal Agarwal |
|
1000 |
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Pranav Narsinghbhai Agrawal |
|
25000 |
|
Anitaben Rajesh Agrawal |
|
75000 |
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Kavitaben Dinesh Agrawal |
|
22800 |
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Rajesh Atmaram Agarwal [Jointly With Veenaben S Agrawal] |
|
61000 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Bodies corporate |
|
17.72 |
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Directors of relatives of directors |
|
82.28 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and
Suppliers of Refined Free Flow Iodized Salt |
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Products : |
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Brand Names : |
“KOHINOOR” |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
·
Nirma Limited ·
Gujarat Heavy Chemicals Limited ·
Hindustan Lever Limited (Marketing under the
Brand name “Annapurna & Captain Cook”) ·
Saboo Sodium Chloride Limited ·
Meghmani Organics
·
Aquagel Chemicals (Private) Limited ·
Bajaj Salt Private Limited ·
C. G. Traders ·
Chitra Traders ·
T. C. International ·
Sanjay
Salt Suppliers ·
Wellbrines
Chemicals Limited ·
Sallech
Industries |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Hiranandani and Company Chartered Accountants |
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Address : |
Banke Bihari, Plot No 16, Ward 12BC, Opposite IFFCO Main Gate, Gandhidham
– 370201, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 40.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3,950,000 |
Equity Shares |
Rs. 10/- each |
Rs. 39.500
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
39.500 |
27.000 |
23.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
[19.666] |
[27.660] |
[23.797] |
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NETWORTH |
19.834 |
[0.660] |
[0.797] |
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LOAN FUNDS |
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1] Secured Loans |
15.283 |
24.261 |
35.738 |
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2] Unsecured Loans |
22.768 |
17.296 |
4.972 |
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TOTAL BORROWING |
38.051 |
41.557 |
40.710 |
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TOTAL |
57.885 |
40.897 |
39.913 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
30.012 |
34.346 |
37.751 |
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Capital work-in-progress |
17.334 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.250 |
0.250 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
9.026
|
2.890 |
3.268 |
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Sundry Debtors |
12.912
|
10.264 |
7.112 |
|
|
Cash & Bank Balances |
0.393
|
0.263 |
0.182 |
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Other Current Assets |
0.921
|
0.742 |
0.683 |
|
|
Loans & Advances |
0.166
|
0.300 |
0.221 |
|
Total
Current Assets |
23.418
|
14.459 |
11.466 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
11.389
|
5.431 |
6.583 |
|
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Provisions |
1.630
|
2.926 |
3.182 |
|
Total
Current Liabilities |
13.019
|
8.357 |
9.765 |
|
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Net Current Assets |
10.399
|
6.102 |
1.701 |
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MISCELLANEOUS EXPENSES |
0.140 |
0.199 |
0.211 |
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TOTAL |
57.885 |
40.897 |
39.913 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
77.284 |
35.718 |
24.264 |
|
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Other Income |
2.874 |
0.753 |
5.166 |
|
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Total Income |
80.158 |
36.471 |
29.430 |
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Profit/(Loss) Before Tax |
8.371 |
[3.862] |
[0.817] |
|
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Provision for Taxation |
0.344 |
-- |
-- |
|
|
Profit/(Loss) After Tax |
8.027 |
[3.862] |
[0.817] |
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Expenditures : |
|
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Cost of Goods Sold |
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Manufacturing Expenses |
0.000 |
0.000 |
10.768 |
|
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Administrative Expenses |
0.000 |
0.000 |
2.317 |
|
|
Raw Material Consumed |
25.893 |
14.999 |
7.248 |
|
|
Purchases made for re-sale |
11.250 |
0.000 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
0.330 |
[0.541] |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
1.748 |
1.742 |
1.552 |
|
|
Payment to Auditors |
0.065 |
0.052 |
0.000 |
|
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Interest |
6.172 |
5.933 |
3.310 |
|
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Insurance Expenses |
0.183 |
0.133 |
0.000 |
|
|
Power & Fuel |
0.695 |
0.027 |
0.000 |
|
|
Depreciation & Amortization |
4.366 |
3.466 |
3.993 |
|
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Other Expenditure |
21.084 |
14.524 |
1.059 |
|
Total Expenditure |
71.786 |
40.335 |
30.247 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
10.01
|
[10.59] |
[2.78] |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
10.83
|
[10.81] |
[3.37] |
|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.67
|
[7.91] |
[1.66] |
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|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.42
|
[5.85] |
[1.03] |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
2.57
|
[75.63] |
[63.33] |
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|
Current Ratio (Current Asset/Current Liability) |
|
1.80
|
1.73 |
1.17 |
LOCAL AGENCY FURTHER INFORMATION
FIXED ASSETS
- Plant and
Machinery
- Furniture and
Fixture
- Tractor and
Tempo Trax
- Cycle
- Computers
- Office
Equipments, Lab Equipments and other assets
BANKERS CHARGES REPORT
AS PER REGISTRY
|
Corporate
identity number of the company |
U51100GJ1996PLC031160 |
|
Name of the
company |
INDO BRINE INDUSTRIES LIMITED |
|
Address of the
registered office or of the principal place of business in |
Survey No. 282, |
|
This form is for |
Creation of
charge |
|
Type of charge |
Equitable
mortgage or mortgage of property by deposition the title deeds |
|
Particular of charge
holder |
Dena Bank Gandhidham –
Kutch, Gujarat – 370201, |
|
Nature of
instrument creating charge |
Memorandum of
entry evidence deposit of title deeds for creating equitable mortgage. |
|
Date of
instrument Creating the charge |
24.03.2006 |
|
Amount secured by
the charge |
Rs. 97.500
Millions |
|
Description of
the property charged indicating whether it is a charged on |
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AS PER WEBSITE
Profile
Salt is
the basic ingredient of food, and modern salt undergoes a complete refining
process. They are a distinguished manufacturer, exporter
and supplier of Refined Free Flow Iodized Salt and
various grades of Industrial Salt under the brand name
of KOHINOOR. The salt produced by them contains NaCl to the
extent of 99.50%. Strategically located at the village salt city of
Their
motto at Indo Brine Industries Limited remains to evolve the best practices in
the field of management and technology and thereby, provide the best quality
products and services to their esteemed customers. Indo Brine Industries
Limited is a sister concern of Agrawals Group of Companies. The group has
automobile dealership of two wheelers and four wheelers and is also engaged in
diverse sectors like automobile finance, transportation, export-and-shipping,
liquid storage tank farms and salt refining.
Quality
Quality
is the hallmark at Indo Brine Industries Limited It is the superior quality of
their products that has fetched them a number of prestigious clients from the
domestic and international regions. They strictly adhere to the quality parameters
specified by the Bureau of Indian Standards. Certified with IS:7224 by BIS and
ISO-9001 Certified for Quality Management System by BVQI, they are committed to
employ the same and come out with superlative quality products. A team of adept
and skilled quality control experts monitors the complete manufacturing
process.
Infrastructure
They are equipped with a state of the art infrastructure with all the
stainless steel equipments and machinery. Their sound infrastructure and
adherence to strict quality control enables them to cater to the market demands
successfully. The list of machinery at their disposal includes specially
designed Wash/Clarifier Tanks, other washing & drying plants, 4 fully
automatic Mico Bosch FFS Packing Machines, etc. Their manufacturing unit has
been designed, engineered, erected and commissioned by SSP Limited of
The
manufacturing process involves preparing of brine from the raw salt and
multiple washing stages. The slurry then undergoes centrifugation process for filtration
that results in the production of salt cakes that are free from impurities like
iron and other insolubles including calcium and magnesium. These salt cakes are
dried in the fluidized bed dryer and after iodization, sieved for proper
granular size and mixed with free flowing agent. Thereafter, the pure final
product is obtained.
Location
The manufacturing facility is located at village
Salt city at Chopadava, survey no. 282 on the National Highway No. 8 A. This is
at a distance of 26 Kms from Gandhidham, the city which houses administrative
offices of Kandla Port Trust, all Governmental offices, Port and Customs,
clearing, stevedoring and forwarding companies. The plant is situated in center
of the major Quality salt harvesting areas. The city possesses all modern
communication facilities and is very easily accessible by Rail, Road as well as
Airways.
Should there be any requirement for catering the
foreign market, their plant is strategically located near the
Subject is a sister concern of Agrawals Group of
companies.
Promoters
The group has interests in well-diversified
areas like Automobile dealership of two wheeler and four wheelers and
automobile finance, Transportation, Export-and-shipping, liquid storage tank
farms and salt refining. The promoters of the company are very sound, reputed
and experienced businessmen with their total turnover running into several
Million Dollars . The promoters enjoy a very good market reputation and major
portion of market in their respective business activities.
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.40.30 |
|
|
1 |
Rs.82.97 |
|
Euro |
1 |
Rs.55.64 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
30 |
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 |
|