MIRA
INFORM REPORT
|
Report Date : |
07.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
PARSIN CHEMICALS LIMITED |
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Registered Office : |
Flat No. H – 1, Samrat Complex, Saifabad, Hyderabad – 500004, Andhra
Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.01.1988 |
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Com. Reg. No.: |
01-8252 |
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CIN No.: [Company
Identification No.] |
U24110AP1988PTC008252 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDP00092B |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing and marketing of Chemicals and Chemical Products, such as Sodium Alide used in Car Air Cushions during Accidents/Collisions. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Maximum Credit Limit : |
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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
|
Registered Office : |
Flat No. H – 1, Samrat Complex, Saifabad, Hyderabad – 500004, Andhra Pradesh,
India |
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Tel. No.: |
91-40-23240006 |
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Fax No.: |
91-40-23240198 |
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E-Mail : |
parsin@hd2.dot.net.in |
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Corporate Office : |
Plot No. 201, 6-3-347/22/8 Dwarkapuri Colony, Hyderabad – 500082,
Andhra Pradesh, India |
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Tel. No.: |
91-40-23350745 / 23353711 |
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Fax No.: |
91-40-23350598 |
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Factory 1 : |
1st Cross, Plot No. 3, 4 & 5 Anrich Industrial
Estate, Bollaran, Medak Dist. Andhra Pradesh |
DIRECTORS
|
Name : |
Mr. Bommidala Bhanumurthy |
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Designation : |
Director |
|
Address : |
Sri Lakshmi Nilayam, Bommidala Avenue, Ring Road, Guntur – 522006 |
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Date of Birth/Age : |
10.07.1931 |
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Date of Appointment : |
10.05.2004 |
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Name : |
Mr. Bommidala V. Srimannarayan |
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Designation : |
Director |
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Address : |
H. No. 1322, Road No. 67, Jublihills, Hyderabad – 500034 |
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Date of Birth/Age : |
17.06.1960 |
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Date of Appointment : |
10.05.2004 |
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Name : |
Mr. Bommidala Venkata Sri Koti Ratnam |
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Designation : |
Director |
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Address : |
Sri Lakshmi Nilayam, Bommidala Avenue, Ring Road, Guntur – 522006 |
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Date of Birth/Age : |
20.05.1963 |
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Date of Appointment : |
10.05.2004 |
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Name : |
Mr. Bommidala Venkata Sri Raja Vara Prasad |
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Designation : |
Director |
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Address : |
H. No. 1322, Road No. 67, Jublihills, Hyderabad – 500034 |
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Date of Birth/Age : |
25.07.1971 |
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Date of Appointment : |
10.05.2004 |
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Name : |
Smt. P.V.S.A. Padma |
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Designation : |
Director |
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Address : |
4-5-7, Lakshmi Nilayam Ring Road, Guntur |
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Date of Appointment : |
06.05.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mr. Bommidala Bhanumurthy |
|
15217 |
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Mr. B. V. Sirmannarayan |
|
1000 |
|
Mr. Bommidala Venkata Sri Koti Ratnam |
|
1000 |
|
Mr. Bommidala Venkata Sri Raja Vara Prasad |
|
1250 |
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Smt. P.V.S.A. Padma |
|
1000 |
|
Bommidala Enterprises Private Limited |
|
748115 |
|
Bio-Pharma Laboratories Private Limited |
|
698418 |
|
TOTAL |
|
1466000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and marketing of Chemicals and Chemical
Products, such as Sodium Alide used in Car Air Cushions during Accidents/Collisions. |
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Exports : |
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Countries : |
U.S.A. |
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Imports : |
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Countries : |
Germany |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
|
Sodium Azide |
MT |
660 |
GENERAL
INFORMATION
|
No. of Employees : |
100 |
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|
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Bankers : |
State Bank of
Hyderbad Overseas Branch, Panjagutta, Hyderabad Andhra Bank State Financial Corporation, Chirag Ali Lane, Hyderabad |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Jayanth & Sadasiv Chartered Accountants |
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Address : |
404 & 405, Sanata Eternal, Himayat Nagar, Hyderabad – 500029, Andhra
Pradesh, India |
|
PAN No.: |
AABFJ9845R |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1750000 |
Equity Shares |
Rs. 10/- each |
Rs. 17.500 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1466000 |
Equity Shares |
Rs. 10/- each |
Rs. 14.660
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
14.660 |
14.660 |
14.660 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
50.162 |
50.162 |
59.593 |
|
|
4] (Accumulated Losses) |
[3.765] |
[3.843] |
0.000 |
|
|
NETWORTH |
61.057 |
60.979 |
74.253 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
3.593 |
2.015 |
0.000 |
|
|
TOTAL BORROWING |
3.593 |
2.015 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
64.650 |
62.994 |
74.253 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
59.073 |
59.072 |
67.902 |
|
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
0.657
|
0.658 |
0.668 |
|
|
Sundry Debtors |
0.135
|
0.015 |
0.808 |
|
|
Cash & Bank Balances |
0.204
|
0.228 |
2.691 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
3.237
|
3.198 |
3.173 |
|
Total
Current Assets |
4.233
|
4.099 |
7.340 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities & Provisions |
0.156
|
0.191 |
1.018 |
|
Total
Current Liabilities |
0.156
|
0.191 |
1.018 |
|
|
Net Current Assets |
4.077
|
3.908 |
6.322 |
|
|
|
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|
|
|
|
MISCELLANEOUS EXPENSES |
1.500 |
0.014 |
0.029 |
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|
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TOTAL |
64.650 |
62.994 |
74.253 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
|
0.000 |
29.029 |
|
|
Other Income |
|
95.300 |
0.071 |
|
|
Increase / Decrease in Stock |
|
0.000 |
[12.757] |
|
|
Total Income |
|
95.300 |
16.343 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
[6.959] |
[22.010] |
|
|
Provision for Taxation |
|
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
|
[6.959] |
[22.010] |
|
|
|
|
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Earnings in Foreign Currency : |
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|
|
|
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Export Earnings |
|
N.A. |
21.741 |
|
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Commission Earnings |
|
N.A. |
0.000 |
|
|
Other Earnings |
|
N.A. |
0.000 |
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Total Earnings |
|
N.A. |
21.741 |
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|
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Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
|
4.516 |
34.884 |
|
|
Interest |
|
0.000 |
0.735 |
|
|
Depreciation & Amortization |
|
2.524 |
2.719 |
|
|
Other Expenditure |
|
0.14 |
0.14 |
|
Total Expenditure |
|
7.180 |
38.478 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
N.A.
|
[7.30] |
[134.67] |
|
|
|
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
N.A.
|
[7.30] |
[134.67] |
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Return on Total Assets (PBT/Total Assets} |
(%) |
N.A.
|
[11.01] |
[29.25] |
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Return on Investment (ROI) (PBT/Networth) |
|
N.A.
|
[0.11] |
[0.29] |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
0.06
|
0.03 |
0.01 |
|
|
|
|
|
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|
Current Ratio (Current Asset/Current Liability) |
|
27.13
|
21.46 |
7.21 |
LOCAL AGENCY
FURTHER INFORMATION
History :
The company was incorporated on 29th January, 1988 at Hyderabad in Andhra Pradesh having Company Registration Number 8252 as a Private Limited Liability company.
Later the company converted into a Deemed Public Limited company w.e.f. 8th October, 1988.
Business :
To carry on the business of manufacture,
process, import, export, run, sell or otherwise deal in all types of chemicals
such as Heavy, Fine, Industrial, Pharmaceutical, Organic, Inorganic and
Aromatic Chemicals, Fermentation products, acids, alkalies, photographic
chemicals, Synthetic Ammonia, Chormates, Textile Chemicals, and chemicals of
all varieties meant for varied use in various industries.
To carry on the business of manufacture,
process, buy, sell and deal in all kinds of medicines, medicinal preparations
and drugs whatsoever and obtain patents for them and undertake manufacture of
these items on loan license basis.
Fixed Assets
Land
Buildings
Plant & Machinery
Office Equipment
Furniture & Fixtures
Vehicles
|
Name of the company |
PARSIN CHEMICALS LIMITED |
|
Presented By |
Y. Satyendranath |
|
2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 2.316 millions |
|
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 |
Term loan on all its immovable and moveable properties present &
future [subject to prior charge on specified movables created or to be
created in favour of the borrower’s bankers as security for working capital]
on pari passu basis with the participating financial institutions/ banks |
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
Interest shall
be 2.5% below State Bank advance rate, minimum 14% per annum current
effective rate being 16.5% per annum with quarterly rests. The interest rate is subject to RBI
directives & IDBI refinance |
|
5) Name and Address and description of the person entitled to the
charge. |
State Bank of
Hyderbad Overseas Branch,
Panjagutta, Hyderabad |
|
6) Date and brief description
of instrument modifying the charge |
-- |
|
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. |
-- |
|
Name of the company |
PARSIN CHEMICALS LIMITED |
|
Presented By |
Y. Satyendranath |
|
2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 6.000 millions |
|
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 |
Hypothecation of all moveable assets including plant & machinery
both existing and proposed and land admeasuring 3 acres situated at Survey
No. 84, Plot No. 3,4 & 5 Anrich Industrial Estate, Village Bollaram,
Medak District. All tangible and moveable assets both present and future
acquisitions and book debts of the company |
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
Interest at 5.5%
above the ruling Bank rate subject to minimum of 15.5% per annum and
repayment of term loan in 13 half yearly installments. The first one shall be at Rs. 0.480
million and the remaining 12 installments shall be at Rs. 0.460 million each
starting from second half of second year |
|
5) Name and Address and description of the person entitled to the
charge. |
Andhra Bank State Financial
Corporation, Chirag Ali Lane, Hyderabad |
|
6) Date and brief description
of instrument modifying the charge |
Memorandum of Pari Passu arrangement dt. 19.04.1989 share securities
created by Parsin Chemicals Limited |
|
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. |
1. The right of each of the mortgages shall rank pari passu interest
without any preference or priority among APSFC & APIDC 2. The insurance policies in respect of properties shall be retained
by the APSFC 3. The title deed & documents shall be in the custody of APSFC 4. The assets under charge shall be sold as per the instructions of
the mortgages 5. Rights of the mortgages not affected against the company and
non-dopardise provisions 6. Appointment of receiver of manager 7. Pari passu distribution and realisation |
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
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.44.50 |
|
UK Pound |
1 |
Rs.85.86 |
|
Euro |
1 |
Rs.58.39 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
- |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
18 |
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 |
|