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MIRA
INFORM REPORT
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Report Date : |
31.05.2007 |
IDENTIFICATION DETAILS
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Name : |
AKZO NOBEL CHEMICALS ( |
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Registered Office : |
501 -502, 5th Floor, San Mahu Complex, 5, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
27.11.2001 |
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Com. Reg. No.: |
16569 |
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CIN No.: [Company
Identification No.] |
U24116PN1990PLC016569 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEA04770D / PNEA05181B |
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PAN No.: [Permanent
Account No.] |
AADCA3914N |
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Legal Form : |
Public Limited Liability Company |
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Line of Business : |
Manufacturer of Polymerisation initiator chemicals, these chemicals are used in the manufacture of various polymers such as PVC, HDPE and LDPE. |
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 3200000 |
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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. Available information indicates satisfactory track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are reported as fair. Payments are reported as 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 : |
501 -502, 5th Floor, San Mahu Complex, 5, |
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Tel. No.: |
91-20-26125822 |
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E-Mail : |
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Factory 1 : |
C-61, (Part), E 19/20, MIDC, Industrial Area, Mahad, District – Raigad – 402301 |
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Tel. No.: |
91-2145-232153 / 232145 |
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Fax No.: |
91-2145-232148 |
DIRECTORS
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Name : |
Mr. R. E. Margevich |
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Designation : |
Directors |
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Name : |
Mr. B. Stuut |
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Designation : |
Director |
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Name : |
Mr. H Aldenhoven |
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Designation : |
Director |
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Name : |
Mr. D. Y. Gaitonde |
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Designation : |
Director |
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Name : |
Mr. A. S. Dalal |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Shrikant K. Kulkarni |
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Designation : |
President and
Manager |
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Date of Birth/Age : |
46 Years |
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Qualification : |
B. Sc. (Tech.) D.B.M. |
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Date of Appointment : |
30.11.1990 |
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Last employment
held : |
Asst. Production Officer in Sandoz (I) Limited |
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Name : |
Mr. S. K. Singhvi |
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Designation : |
General Manager (Finance) and Company Secretary |
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Name : |
Mr. K A Kakade |
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Designation : |
Asst. Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Polymerisation initiator chemicals, these chemicals are used in the manufacture of various polymers such as PVC, HDPE and LDPE. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Polymerisation Initiators |
MT |
-- |
1200 |
1106.128 |
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Catalyst |
MT |
-- |
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411.524 |
GENERAL INFORMATION
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Bankers : |
v ABN Amro Bank N.V. v
State Bank of v
HDFC Bank Limited |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Bharat S. Raut and Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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9,900,000 |
Equity Shares |
Rs. 10/- each |
Rs. 99.000 millions |
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10,000 |
Preference Shares |
Rs. 100/- each |
Rs. 1.000 million |
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Total |
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Rs. 100.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4,900,000 |
Equity Shares |
Rs. 10/- each |
Rs. 49.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
49.000 |
49.000 |
49.000 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
769.533 |
625.557 |
548.048 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
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818.533 |
674.557 |
597.048 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING
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0.000 |
0.000 |
0.000 |
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DEFERRED TAX
LIABILITIES |
5.154 |
7.321 |
14.913 |
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TOTAL
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823.687 |
681.878 |
611.961 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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65.205 |
72.713 |
96.412 |
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Capital work-in-progress
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0.000 |
0.090 |
1.483 |
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INVESTMENT
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0.000 |
0.000 |
10.044 |
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DEFERREX TAX ASSETS
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0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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67.131 |
49.233 |
39.740 |
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Sundry Debtors
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57.446 |
78.107 |
35.428 |
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Cash & Bank Balances
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107.941 |
44.722 |
96.214 |
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Other Current Assets
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6.002 |
4.878 |
2.775 |
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Loans & Advances
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753.403 |
587.614 |
446.011 |
Total Current Assets
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991.923 |
764.554 |
620.168 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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124.841 |
99.784 |
84.030 |
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Provisions
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108.600 |
55.695 |
32.116 |
Total Current Liabilities
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233.441 |
155.479 |
116.146 |
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Net Current Assets
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758.482 |
609.075 |
504.022 |
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MISCELLANEOUS EXPENSES
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0.000 |
0.000 |
0.000 |
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TOTAL
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823.687 |
681.878 |
611.961 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
578.200 |
448.800 |
288.800 |
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Other Income |
52.100 |
34.700 |
64.100 |
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Total Income |
630.300 |
483.500 |
352.900 |
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Profit/(Loss) Before Tax |
218.100 |
122.800 |
108.796 |
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Provision for Taxation |
74.100 |
45.300 |
29.960 |
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Profit/(Loss) After Tax |
144.000 |
77.500 |
78.836 |
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Earnings in Foreign Currency : |
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Export Earnings |
101.606 |
60.376 |
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Other Earnings |
9.936 |
6.838 |
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Total Earnings |
111.542 |
67.214 |
10.605 |
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Imports : |
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Raw Materials |
180.793 |
119.747 |
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Stores & Spares |
0.506 |
0.357 |
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Capital Goods |
0.322 |
1.428 |
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Total Imports |
181.621 |
121.532 |
96.651 |
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Expenditures : |
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Raw Materials |
213.500
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159.600
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104.200
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Excise Duty |
66.400
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56.900
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37.000
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Power & Fuel Cost |
7.200
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6.700
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5.800
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Other Manufacturing Expenses |
14.800
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15.200
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15.600
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Employee Cost |
15.600
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19.500
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18.400
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Selling and Administration
Expenses |
71.300
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57.200
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42.800
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Miscellaneous Expenses |
10.700
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11.300
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12.100
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Depreciation |
12.700
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34.300
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8.100
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Total Expenditure |
412.200 |
360.700 |
244.000 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity Ratio |
0.00 |
0.00 |
0.04 |
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Long Term Debt Equity Ratio |
0.00 |
0.00 |
0.04 |
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Current Ratio |
4.38 |
4.71 |
3.42 |
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TURNOVER RATIOS |
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Fixed Assets |
2.81 |
2.22 |
1.44 |
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Inventory |
9.94 |
10.10 |
8.07 |
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Debtors |
8.53 |
7.91 |
8.09 |
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Interest Cover Ratio |
0.00 |
0.00 |
0.00 |
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Operating Profit Margin (%) |
39.92 |
35.00 |
40.51 |
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Profit Before Interest and Tax Margin (%) |
37.72 |
27.36 |
37.71 |
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Cash Profit Margin (%) |
27.10 |
24.91 |
30.12 |
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Adjusted Net Profit Margin (%) |
24.90 |
17.27 |
27.32 |
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Return on Capital Employed (%) |
29.22 |
19.32 |
18.75 |
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Return on Net Worth (%) |
19.29 |
12.19 |
14.15 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Buildings
- Plant and Machinery
- Furniture
- Fixtures and Office Equipments
- Vehicles
History:
Promoted by Century Enka, Century Textiles & Industries
and Akzo Chemicals International (ACI), the Netherlands (40% stake), Akzo Nobel
Chemicals (earlier known as Centak Chemicals), was incorporated in Aug.'90 as a
public limited company and it commenced business in Calcutta in Jan.'91. It has
set up a project to manufacture polymerisation initiators at Mahad in Raigad
district with an installed capacity of 500 tpa. The company belongs to the
Basant Kumar Birla group.
The company produces polymerisation initiator chemicals, these chemicals are
used in the manufacture of various polymers such as PVC, HDPE and LDPE.
In Jun.'94, the company issued and allotted 6.12 lac 13.5% PCDs of Rs 120 each,
aggregating Rs 73.500 Millions. The proceeds of the issue were utilised to
part-finance, the repayment of bridge loans, and to meet the long-term working
capital requirements. The other group companies are Century Textiles, Jay Shree
Tea, Kesoram Industries, Mangalam Cement, etc.
In 1996, company entered into a technology licence agreement with
During 1998-99, the company increased its installed capacity of Polymersiation
Initiators by 300 MT there by taking its capacity to 800 MT.
During the year 1999-2000, the Company has been approved by DNV for
certification for ISO 14001 environment management system.
During the year 2000-2001, Akzo Nobel Chemicals International BV, the
co-promoter, has as part of its global strategy, decided to make the company a
subsidiary to enhance its commitment to business in India and has acquired
52.99% equity shares of the company. 18.98% from Century Enka , 16% from
Century Textiles and Industries and 18.01% from public through Open Offer. Akzo
Chemicals International BV now owns 92.99% equity share capital of the Company.
Consequently the company was renamed Akzo Nobel Chemicals Ltd.
Course
Of Business :
The performance of your Company for the year 2005-06 was good. Net Sales
increased by 28.85% compared to previous year due to higher exports.
Profit before Tax is higher by 77.66% compared to the previous year due to increase
in Sales and reduction in the Depreciation Cost. Net Profit after Tax is Rs.
143.976 Millions.
Plant operations were safe and there was no lost time incident. Also,
production efficiency was better and expenses of the Company were under
control.
They acknowledge the valuable contribution of Akzo Nobel Chemicals
International B.V. through continued technological assistance.
ORGANISATION AND HUMAN RESOURCES
Employees are fully involved in accomplishing the vision of the Company, which
states 'Significantly Grow the Business by being Low Cost Producer, Market
Leader and Global Player'.
Their employees conduct business activities with a spirited enthusiasm to
achieve global standards. Their employees are motivated and perform with
excellent teamwork.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.54 |
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1 |
Rs.80.21 |
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Euro |
1 |
Rs.54.51 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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46 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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