MIRA
INFORM REPORT
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Report Date : |
02.06.2007 |
IDENTIFICATION DETAILS
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Name : |
HYDERABAD CHEMICALS SUPPLIES LIMITED |
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Registered Office : |
4 -3-377, Devika Mahal, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
30.01.1954 |
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Com. Reg. No.: |
000736 |
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CIN No.: [Company
Identification No.] |
L24230AP1954PLC000736 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDH00049A |
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Legal Form : |
Closely held public limited liability company. |
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Line of Business : |
Manufacturer of Chemicals and Pesticides. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 1900000 |
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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 having satisfactory
track. Directors are reported a
experienced and respectable businessmen.
Trade relations are reported as fair.
Business is active. 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 : |
4 -3-377, Devika Mahal, |
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Tel. No.: |
91-40-24756927 |
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E-Mail : |
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Factory : |
A 24/25,
APIE Balanagar, |
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Tel. No.: |
91-40-23773906/23772651 |
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Fax No.: |
91-40-23772595 |
DIRECTORS
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Name : |
Mr. N. Sukumar |
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Designation : |
Managing Director |
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Address : |
6-3-883 / A /10, |
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Date of Birth/Age : |
02.10.1951 |
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Date of Appointment : |
24.09.1988 |
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Name : |
Mr. Dipesh K. Shroff |
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Designation : |
Director |
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Address : |
39, Hatkesh Society, N S Road, No.6, Ville Parle (West), Mumbai – 400
056, |
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Date of Birth/Age : |
03.02.1960 |
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Date of Appointment : |
21.11.2003 |
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Name : |
Mrs. Shruti Atul Shroff |
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Designation : |
Director |
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Address : |
7, Charotar Society, |
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Date of Birth/Age : |
24.09.1950 |
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Date of Appointment : |
21.11.2003 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mrs. Nandini Ramesh Gandhi |
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13680 |
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Mrs. Nandini Ramesh Gandhi |
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13680 |
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Category |
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Percentage
of Holding |
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Directors or relatives of directors |
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60.00 |
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Other top fifty (50) shareholders |
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40.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Chemicals and Pesticides. |
PRODUCTION STATUS – As on 31.03.2005
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Name of the
Product |
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Installed
Capacity |
Actual
Production |
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Agro Chemicals
and Pesticides |
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Liquid and Powder formulations |
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7800 |
8059 |
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Wind Power |
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6.75 mw |
31.31 kwh |
GENERAL INFORMATION
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Bankers : |
State Bank
of |
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Facilities : |
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Secured Loans as
on 31.03.2005: |
Rs.
(in Millions) |
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a) Working Capital Loan from State Bank of On cash credit Account b) Term Loan from State Bank of Overseas Branch Abids, |
11.544 4.978 |
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Unsecured Loans
as on 31.03.2005 |
Rs.
(in Millions) |
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From Directors Deferred Sales Liability |
1.147 24.792 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Raja Ram and Company Chartered Accountants |
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Name of the
Auditor: |
Mr. B M Rama Joga Rao |
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Address : |
209, Ameer Mahal Apartments, Hyderguda, |
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Associates/Subsidiaries : |
Hyderabad Chemical Products Limited |
CAPITAL STRUCTURE
Authorized Capital:
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No. of Shares |
Type |
Value |
Amount |
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1,000,000 |
Equity Shares |
Rs. 10.00 each |
Rs.10.000 millions |
Issued, Subscribed & Paid-up Capital:
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No. of Shares |
Type |
Value |
Amount |
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3,00,000 |
Equity Shares |
Rs. 10.00 each |
Rs. 3.000 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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1] Share Capital |
3.000 |
3.000 |
3.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
495.194 |
405.633 |
401.795 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
498.194 |
408.633 |
404.795 |
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LOAN FUNDS |
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1] Secured Loans |
58.229 |
16.522 |
9.684 |
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2] Unsecured Loans |
70.360 |
44.661 |
25.845 |
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TOTAL BORROWING |
128.589 |
61.183 |
35.529 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
1.636 |
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TOTAL |
626.783 |
469.816 |
356.684 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
285.775 |
258.064 |
110.950 |
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Capital work-in-progress |
0.542 |
0.000 |
0.000 |
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INVESTMENT |
36.771 |
36.771 |
36.771 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
316.695
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261.835 |
172.469 |
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Sundry Debtors |
138.202
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117.782 |
106.389 |
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Cash & Bank Balances |
37.578
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28.239 |
3.936 |
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Other Current Assets |
0.000
|
0.000 |
108.588 |
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Loans & Advances |
158.580
|
105.707 |
8.129 |
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Total
Current Assets |
651.055
|
513.563 |
399.511 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
233.184
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256.486 |
140.171 |
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Provisions |
114.175
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82.094 |
4.982 |
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Total
Current Liabilities |
347.359
|
338.580 |
189.993 |
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Net Current Assets |
303.696
|
174.982 |
209.518 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
626.783 |
469.816 |
356.684 |
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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 |
1483.964 |
1443.471 |
1160.198 |
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Other Income |
43.027 |
52.066 |
15.243 |
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Total Income |
1526.991 |
1495.537 |
1175.441 |
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Profit/(Loss) Before Tax |
156.254 |
151.549 |
93.995 |
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Provision for Taxation |
51.300 |
32.360 |
30.007 |
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Profit/(Loss) After Tax |
104.954 |
119.189 |
63.988 |
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Import Value |
0.000 |
0.000 |
41.676 |
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Export Value |
0.000 |
0.000 |
0.00 |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
0.000 |
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Manufacturing Expenses |
0.000 |
0.000 |
0.000 |
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Administrative Expenses |
0.000 |
0.000 |
0.000 |
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Raw Material Consumed |
731.114 |
735.344 |
0.000 |
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Purchases made for re-sale |
101.678 |
121.103 |
0.000 |
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Consumption of stores and spares parts |
0.000 |
0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
33.593 |
29.606 |
0.000 |
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Managerial Remuneration |
1.080 |
0.850 |
0.000 |
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Payment to Auditors |
0.160 |
0.160 |
0.000 |
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Interest |
5.637 |
0.844 |
1.300 |
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Insurance Expenses |
2.221 |
2.538 |
0.000 |
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Power & Fuel |
3.211 |
2.926 |
0.000 |
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Depreciation & Amortization |
86.857 |
66.697 |
9.586 |
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Other Expenditure |
492.044 |
450.616 |
1064.879 |
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Total Expenditure |
1457.595 |
1410.684 |
1075.765 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
6.87
|
7.97 |
5.44 |
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Net Profit Margin (PBT/Sales) |
(%) |
10.53
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10.50 |
8.10 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
16.68
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19.64 |
18.41 |
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Return on Investment (ROI) (PBT/Networth) |
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0.31
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0.37 |
0.23 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.96
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0.98 |
0.56 |
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Current Ratio (Current Asset/Current Liability) |
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1.87
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1.52 |
2.10 |
LOCAL AGENCY FURTHER INFORMATION
|
Name of the company |
HYDERABAD CHEMICAL
SUPPLIES LIMITED (Hereinafter referred to as the Company) |
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Presented By |
Mr. N. Sukumar,
Managing Director |
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1) Date and description of instrument creating the change |
26.06.2003 Agreement of
Hypothecation of goods and assets |
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2) Amount secured by the charge/amount owing on the securities of charge |
The Corporate
Loan (Term Loan) of Rs. 14.200 millions sanctioned by State Bank of |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Primary Security:
Sole 1st charge on all the fixed assets of the Power Division
located at Kadavakallu village, Putlur Mandal(Ananthapur District) Collateral
Security: Sole 2nd Charge on the fixed assets of pesticide
division. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The charge
operates as security interalia, for the due repayments by the Company to
State Bank of |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Overseas Branch,
5 – 9- 300, Abids, |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
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Corporate
identity number (CIN) Foreign company registration number |
L24230AP1954PLC000736 |
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Name of the
Company |
HYDERABAD
CHEMICALS LIMITED |
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Address |
4-3-377 / 1 Bank
Street, koti, |
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This form is for |
Creation of
charge |
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Type of Charge |
A Charge on Immovable
Property Movable property (not
being pledge) Others –
Corporate Guarantee of Chemicals
Products Limited |
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Whether
consortium finance is involved |
No |
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Whether joint
charge involved |
No |
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Particulars of
the charge holder |
State Bank of IDPL Colony Branch,
Balanagar, E-mail: hyd2_sbh0245@sancharnet.in |
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Amount secured by
the charge |
Rs. 60.000
millions |
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Nature or
description of the instrument(s) creating or modifying the charge |
Agreement of
overall limit dated 16.01.2007 Agreement of
Hypothecation of Goods and Assets dated 16.01.2007 Deed of Guarantee
for overall limit dated 16.01.2007 Letter regarding the
grant of individual limits within the overall limit Memorandum of
deposit of title deeds for creation of Charge and also creation of further
charge on properties already mortgaged for term loan / overall limit. Guarantee
agreement to Hyderabad Chemical Products Limited for Rs. 161.000 millions |
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Date of
Instrument |
16.01.2007 |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
(a) Rate of
Interest: 10% per annum to
be reset every 2 years and with a swing option to avail FCNR (B) term Loan at
6 months LIBOR Plus 250 BPS. (b) Terms of
repayment: Five years
inclusive of moratorium period. Term loan to be repaid in 20 quarterly
installments of Rs. 3.000 millions commencing from 30.06.2007 and ending on 31.03.2012. © Margin: Minimum
of 40 % (d) Extent and
operation of the charge: Exclusive first
charge on the fixed assets of the proposed project to be situated at Gat no.
156 and 157 admeasuring 1H 46 R and 0 H 45 R vide doc. Nos. 5345/2006 and
5245/2006 respectively, GUDEPANCHANGINI wind farm, SANGLI DISTRICT,
MAHARASHTRA created out of Bank finance. |
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Short particulars
of the property charged (including location of the property) |
Exclusive 1
charge on the proposed project to be situated at GUDEPANCHANGINI, SANGLI
DISTRICT created out of bank finance.
Extension of EM of Factory L and B of HCPL at Balanagar. Hypothecation of P& M of existing unit
of HCL. I charge on other movable assets.
Pari passu I charge on Wind Mill financed by State Bank of Corporate
guarantee of HCPL. |
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Whether any of
the property or interest therein under reference is not registered in the
name of the company |
No |
Subject carries on the business of manufacture of chemicals and pesticides.
Production / Facilities:
With a view to upgrade the liquid formulation facilities to meet the increase in demand and to improve productivity and quality of formulations a fully automated PLC based liquid formulation plant has been set up at Balanagar. The plant with a capacity of 50 KL per shift has been designed and erected. Two automatic packaging plants one each for liquids and powder have been commissioned, with this addition Balanagar facility has 2 packaging plants for liquids, powder granules to facilitate timely supplies of over 200 different packs spread over a wide range of 40 products.
During the year the company has introduced 5 new formulations war tap granules, war tap SP, Trizer (Insecticide), sunsulf, Flock (Fungicide), hydan has been relaunched as Phosphamidan 40% SL. The company has also produced 33 MT of Endosulphan 50% svp for export.
Subject operates from caption owned office and factory premises.
Fixed Assets
v Land
v Building
v Laboratory Equipment
v Vehicles
v Technical Books
v Land (Wind farm)
v Building (Wind farm)
v Plant and Machinery (Wind farm)
Contingent Liabilities
|
Particulars |
Rs. in Millions
as on 31.03.2005 |
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a) Bills Discounted |
Nil |
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b) Claims against the Company not
acknowledged as debts |
Nil |
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c) Guarantees and Counter Guarantees
outstanding 1. Excise 2. Others |
0.150 Nil |
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d) Estimated amount of contracts remaining
to be executed on capital account |
Nil |
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. 40.56 |
|
|
1 |
Rs. 80.81 |
|
Euro |
1 |
Rs. 54.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
57 |
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 |
|