MIRA
INFORM REPORT
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Report Date : |
12.06.2007 |
IDENTIFICATION DETAILS
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Name : |
LRC SPECIALITY CHEMICALS PRIVATE LIMITED |
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Registered Office : |
D 9/4, TTC MIDC Industrial Area, Village Kukshet, Turbhe, Navi Mumbai
- 400705, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
03.06.2004 |
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Com. Reg. No.: |
11-146732 |
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CIN No.: [Company
Identification No.] |
U24100MH2004PTC146732 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML05725G |
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PAN No.: [Permanent
Account No.] |
AABCL0694F |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Manufacturer of all kinds of chemicals. |
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 89000 |
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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 as 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 : |
D 9/4, TTC MIDC Industrial Area, Village Kukshet, Turbhe, Navi Mumbai
- 400705, |
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Tel. No.: |
91-22-27682752 |
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Fax No.: |
91-22-27614820 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Sankar Vaideshwar Jaysankar |
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Designation : |
Director |
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Address : |
20, Sai – Villa, |
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Date of Birth/Age : |
28.09.1947 |
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Date of Appointment : |
03.06.2004 |
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Name : |
Ms. Rajalakshmi Pazhayanur Subramania Sankar |
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Designation : |
Director |
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Address : |
20, Sai – Villa, |
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Date of Birth/Age : |
29.08.1921 |
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Date of Appointment : |
03.06.2004 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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S. V. Jaysankar |
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500 |
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P. S. Rajisankar |
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500 |
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Category |
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Percentage of
Holding |
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Directors of relatives of directors |
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100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of all kinds of chemicals. |
GENERAL INFORMATION
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Bankers : |
CITI Bank N. A. Citigroup Centre,
Bandra Kurla Complex, Bandra [East] Mumbai – 400051, |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
J K Varghese and Company Chartered Accountants |
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Address : |
102, Sai Deep, 1st Floor, Opposite Vaishali Hotel, Chembur,
Mumbai – 400071, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000 |
Equity Shares |
Rs. 100/- each |
Rs. 10.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000 |
Equity Shares |
Rs. 100/- each |
Rs. 10.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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10.000 |
0.100 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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12.379 |
0.000 |
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4] (Accumulated Losses) |
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0.000 |
[0.400] |
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NETWORTH |
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22.379 |
[0.300] |
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LOAN FUNDS |
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1] Secured Loans |
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2.503 |
0.000 |
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2] Unsecured Loans |
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3.930 |
0.000 |
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TOTAL BORROWING |
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6.433 |
0.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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28.812 |
[0.300] |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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15.914 |
0.000 |
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INVESTMENT |
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1.550 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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10.231 |
0.000 |
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Sundry Debtors |
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54.148 |
0.000 |
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Cash & Bank Balances |
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0.700 |
0.000 |
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Other Current Assets |
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18.250 |
0.040 |
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Loans & Advances |
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0.742 |
0.000 |
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Total
Current Assets |
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84.071 |
0.040 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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60.934 |
0.456 |
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Provisions |
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11.883 |
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Total
Current Liabilities |
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72.817 |
0.456 |
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Net Current Assets |
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11.254 |
[0.416] |
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MISCELLANEOUS EXPENSES |
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0.094 |
0.116 |
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TOTAL |
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28.812 |
[0.300] |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 [Estimated] |
31.03.2005 |
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Sales Turnover |
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100.000 |
Nil |
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Profit/(Loss) Before Tax |
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NA |
[0.400] |
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Provision for Taxation |
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NA |
-- |
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Profit/(Loss) After Tax |
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NA |
[0.400] |
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Total Expenditure |
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NA |
0.400 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Return on Investment (ROI) (PBT/Networth) |
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-- |
[1.33] |
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Debt Equity Ratio (Total Liability/Networth) |
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3.54 |
[1.52] |
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Current Ratio (Current Asset/Current Liability) |
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1.15 |
0.09 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
LRC SPECIALITY
CHEMICALS PRIVATE LIMITED |
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Presented By |
Mr. S. V.
Jaysankar |
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1) Date and description of instrument creating the change |
Goods security
agreement dated 22.07.2005 executed by LRC Speciality Chemicals Private Limited
in favour of Citibank N. A. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Total working
capital facilities of Rs. 40.000 Millions |
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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 |
The whole of movable
assets, including plant and machinery, both present and future, stocks of raw
materials goods in process of manufacture, semi finished goods and all
finished and manufactured goods and articles together with all stores,
components and spares which now belong to and pertains to or may hereafter from time to time during the
continuance of this security belong to and pertains to, The Company and which
are or shall or may be brought into stored or be in or upon or about the
Company’s factory, godowns and on their premises wherever else the same may
be situated, or laying or being including any such raw materials,
inventories, articles or goods any stores spares and components or other
similar moveable assets in course of transit or delivery to the company and
all of the company’s present and future book debts, outstanding monies
receivables, claims, bills, investments, rights to or on moveable properties
and movable assets forming part of current and movable fixed assets which are
now due owing or payable or belonging to or pertaining to the company or
which may at any time hereafter during the continuance of this security
become due, owing payable or belonging to or pertaining to the company in the
course of its and together with all benefits, advantages and thereof. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
In consideration
of the lender having agreed to lend advance to the company the said credit
facilities under agreement, the company covenants inter alia, as follows : The company do
repay the facility as mentioned [2] above and pay interest and all other
monies in the manner set out in the said agreement between the company and
the lender and to comply with the terms and conditions of the said agreement.
The said current
assets and fixed assets Hypothecated to the lender by way of first exclusive
charge created in favour of the bank as security for and be charged with the
repayment of the loan with all interest, liquidated damages, premia on
prepayment or on redemption costs, charges and other expenses payable by the
company to the lender in respect thereof. Marin : 36 % for
stocks and 36 % for export receivables From FOSROC and
MBT 36 % for Local receivables from P and G ICI and BASF and 44 % on other
receivables. The company to
keep the said assets in marketable and good conditions and also insured as
provided therein. Power of entry
power to take charge and possession of seize, recover, receive, appoint an sell,
contract, dispatch for relisation or otherwise dispose of or deal with all or
any part of the said assets etc. as provided therein. |
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5) Name and Address and description of the person entitled to the charge. |
CITI Bank N. A. Citigroup Centre,
Bandra Kurla Complex, Bandra [East] Mumbai – 400051, |
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6) Date and brief description of instrument modifying the charge |
Deed of
Modification dated 18.11.2005 executed by LRC Speciality Chemicals Private
Limited in favour of Citibank N. A. |
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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. |
All other terms and
conditions remaining the same, the total amount of working capital facilities
is increased form Rs. 40.000 Millions to Rs. 30.000 Millions and same is
secured by a first exclusive charge on the present and future stocks, book
dents and plant and machinery of the company. |
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Corporate
identity number of the company |
U24100MH2004PTC146732 |
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Name of the
company |
LRC SPECIALITY CHEMICALS PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
D 9/4, TTC Industrial Area, Turbhe, Navi Mumbai - 400705, |
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This form is for |
Creation of charge |
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Type of charge |
Hypothecation |
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Particular of
charge holder |
CITI Bank N. A. Citibusiness,
Citibank Centre, Bandra Kurla Complex, Bandra [East], Mumbai – 400051, |
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Nature of
instrument creating charge |
Secured Term Loan
agreement where the security is by way of Hypothecation of stocks and Book
debts and plant and machinery. |
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Date of
instrument Creating the charge |
26.04.2006 |
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Amount secured by
the charge |
RS. 5.000
Millions |
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Description of the
property charged indicating whether it is a charged on |
Stock in trade Plant and
Machinery Book Debts |
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.40.73 |
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1 |
Rs.80.43 |
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Euro |
1 |
Rs.54.44 |
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 |
6 |
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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 |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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45 |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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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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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