MIRA
INFORM REPORT
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Report Date : |
23.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
ARTEK SURFIN CHEMICALS LIMITED |
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Registered Office : |
Plot No.121, Marol Co-operative
industrialEsate M V Rd, Andheri (E), Mumbai;400059, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
31.01.1990 |
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Com. Reg. No.: |
11-55269 |
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CIN No.: [Company
Identification No.] |
U29190MH1990PLC055269 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA21351B |
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PAN No.: [Permanent
Account No.] |
AAACA3374Q |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Engaged in the business of Metal Finishing, Electroplating and Printed Circuit Boards (P.C.B’s), Encompassing Products and Processes. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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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 1250000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and resourceful industrialists. Their trade relations are fair. General financial position is satisfactory. 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 : |
Plot No.121, Marol Co-operative
industrialEsate M V Rd, Andheri (E), Mumbai;400059, Maharashtra |
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Tel. No.: |
91-22-56952200 |
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Fax No.: |
91-22-28506972 |
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E-Mail : |
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Web site: |
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Factory 1 : |
Located at : Surfin Centre, Plot No. 121, Marol Co-operative Industrial Estate, M. V. Road, Andheri (East), Mumbai – 400 059, Maharashtra, India. Vasai, Thane, Maharashtra, India |
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Tel. No.: |
91-22-28505633 / 5332 / 5242 |
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Fax No.: |
91-22-28506972 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Sushil Beniprasad Goenka |
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Designation : |
Chairman cum Managing Director |
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Address : |
20 vinayak Kunj, Jai Hind Society, 12th Road, JVPD Scheme,
Vile Parle(West), Mumbai;400049, Maharashtra |
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Date of Birth/Age : |
31.12.1947 |
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Date of Appointment : |
16.08.1990 |
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Name : |
Mr. Vishal Sushil Goenka |
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Designation : |
Director |
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Address : |
20 vinayak Kunj, Jai Hind Society, 12th Road, JVPD Scheme,
Vile Parle(West), Mumbai;400049, Maharashtra |
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Date of Birth/Age : |
11.04.1972 |
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Date of Appointment : |
01.02.1996 |
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Name : |
Mr. Sunil Beniprasad Goenka |
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Designation : |
Director |
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Address : |
20 vinayak Kunj, Jai Hind Society, 12th Road, JVPD Scheme,
Vile Parle(West), Mumbai;400049, Maharashtra |
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Date of Birth/Age : |
19.06.1967 |
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Date of Appointment : |
05.06.1995 |
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Name : |
Mr. Harihar Iyer Ayyaswamy |
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Designation : |
Director |
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Address : |
Flat no.6, Chardham, Road No.3, TPS IV, Off: Turner Road, Bandra(West)
, Mumbai;400050, Maharashtra |
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Date of Birth/Age : |
05.11.1937 |
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Date of Appointment : |
01.05.1992 |
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Name : |
Mr. Jagmohan Singh Dang |
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Designation : |
Director |
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Address : |
B-301, Silver springs Opp: HDFC Bank , Lokhandwala Complex, Andheri
(West) Mumbai:400 048, Maharashtra |
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Date of Birth/Age : |
22.12.1950 |
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Date of Appointment : |
30.08.2002 |
KEY EXECUTIVES
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Name : |
Mr. Girish Laxman Papat |
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Designation : |
Secretary |
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Address : |
17-b, Shivchhaya CHS, Karnik
Road, Near Nutan School, Kalyan (West), Thane;421301, Maharashtra |
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Date of Birth/Age : |
06.05.1980 |
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Date of Appointment : |
18.02.2005 |
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Experience : |
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Date of Appointment : |
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MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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Sushil Beniprasad Gonenka |
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466550 |
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Sunil Beniprasad Goenka |
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78000 |
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Vishal Sushil Goenka |
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220000 |
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Rajendra Beniprasad Goenka |
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240000 |
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Beniprasad Gangabux Goneka |
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225000 |
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Shakuntaladevi Beniprasad Goenka |
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245000 |
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Anjana Sunil Goenka |
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235000 |
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Rajendra Goneka(HUF) |
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20000 |
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Sunil Goneka (HUF) |
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15150 |
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Amit Rajendra Goenka |
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140000 |
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Beniprasad Goenka (HUF) |
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100500 |
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Asha Rajendra Goenka |
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100000 |
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Anuj Sushil Goenka |
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207000 |
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Anish Rajendra Goenka |
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150000 |
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Sushila Sushil Goenka |
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50000 |
BUSINESS DETAILS
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Line of Business : |
Engaged in the business of Metal Finishing, Electroplating and Printed Circuit Boards (P.C.B’s), Encompassing Products and Processes. |
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Products : |
Ø Metal Finishing Chemicals - 3824.90.11 (Item Code) Ø Electroplating Chemicals Ø Liquids Ø Salts |
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Imports : |
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Countries : |
Europe and Far East |
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Terms : |
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Purchasing : |
L/C terms |
PRODUCTION STATUS
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Particulars |
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Unit |
Installed Capacity |
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Liquids |
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K. Ltrs. |
3290.277 |
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Salts |
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M. Tons |
2565.150 |
GENERAL
INFORMATION
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Customers : |
The company's major customer's are as under : v Bausch & Lomb (India) Limited v Bimetal Bearings Limited v Bajaj Auto Limited v Bharat Dynamics Limited v Balmer Lawrie Van Leer Limited v Electronics Corporation of India Limited v Eagle Flask Industries Limited v Escorts Yamaha Limited v Fine Line Circuits Limited v Guest Keen Williams Limited v Gujarat Cycles Limited v Indian Telephone Industries Limited v Majestic Auto Limited v Philips India Limited v Roadmaster Industries (India) Limited v Siemens India Limited v STI Biplus Tubing (India) Limited v T. I. Cycles (India) Limited |
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No. of Employees : |
Aound 200 |
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Bankers : |
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Facilities : |
Subject enjoys following facilities from Citi Bank N.A.
(Secured loan against hypothecation of all stocks and book debts and on equitable charge of Block Assets by deposit of Title deeds of Andheri Factory as Collateral Security)
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Choudhari and Pansari Chartered Accountant |
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Address : |
102, Gauresh Apartment, Agarakr Chowk, Old Police Lines,
andheri(East), Mumbai:400069 |
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Associates/Subsidiaries : |
v Rebound Exports Limited v Bombay Fashions Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2500000 |
Equity Shares |
Rs.10/- each |
Rs.25.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
2492200 |
Equity Shares |
Rs.10/- each |
Rs.24.922
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 |
24.922 |
24.922 |
24.922 |
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2] Share Application Money |
0.000 |
0.000 |
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3] Reserves & Surplus |
546.566 |
411.410 |
309.519 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
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NETWORTH |
571.488 |
436.332 |
334.441 |
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LOAN FUNDS |
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1] Secured Loans |
71.422 |
61.310 |
43.480 |
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2] Unsecured Loans |
0.000 |
0.322 |
0.606 |
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TOTAL BORROWING |
71.422 |
61.632 |
44.086 |
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DEFERRED TAX LIABILITIES |
13.509 |
14.277 |
12.596 |
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TOTAL |
656.419 |
512.241 |
391.123 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
107.391 |
96.742 |
83.473 |
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Capital work-in-progress |
0.354 |
0.251 |
-- |
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INVESTMENT |
230.262 |
132.509 |
83.373 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
80.669
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74.234 |
77.142 |
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Sundry Debtors |
169.847
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166.408 |
177.363 |
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Cash & Bank Balances |
11.307
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12.111 |
7.528 |
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Other Current Assets |
0.000
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0.000 |
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Loans & Advances |
170.212
|
134.426 |
82.276 |
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Total
Current Assets |
432.035
|
387.179 |
344.309 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
111.375
|
95.735 |
120.032 |
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Provisions |
2.248
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8.706 |
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Total
Current Liabilities |
113.623
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104.441 |
120.032 |
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Net Current Assets |
318.411
|
282.738 |
224.277 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
656.419 |
512.241 |
391.123 |
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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 |
740.286 |
692.447 |
582.084 |
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Other Income |
48.392 |
12.822 |
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Total Income |
788.678 |
705.269 |
582.084 |
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Profit/(Loss) Before Tax |
154.690 |
124.571 |
90.585 |
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Provision for Taxation |
16.472 |
22.680 |
6.869 |
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Profit/(Loss) After Tax |
138.218 |
101.891 |
83.716 |
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Imports |
0.000 |
0.000 |
129.757 |
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Exports |
0.000 |
0.000 |
198.902 |
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Expenditures : |
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Raw Material Consumed |
454.625 |
402.579 |
298.084 |
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Purchases made for re-sale |
0.497 |
7.649 |
60.212 |
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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 |
(0.764) |
13.412 |
(15.975) |
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Salaries, Wages, Bonus, etc. |
29.806 |
27.050 |
0.000 |
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Managerial Remuneration |
0.816 |
0.408 |
0.000 |
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Payment to Auditors |
0.486 |
0.196 |
0.000 |
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Payment to Employee |
0.000 |
0.000 |
29.730 |
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Administrative
& Other Expenses |
0.000 |
0.000 |
109.805 |
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Finance Charges |
0.000 |
0.000 |
0.949 |
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Interest |
5.819 |
3.394 |
0.000 |
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Insurance Expenses |
4.752 |
5.046 |
0.000 |
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Power & Fuel |
3.196 |
2.704 |
0.000 |
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Depreciation & Amortization |
13.505 |
10.849 |
8.693 |
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Other Expenditure |
121.247 |
107.336 |
0.000 |
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Total Expenditure |
633.985 |
580.699 |
491.498 |
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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 |
(%) |
17.52
|
14.44 |
14.38
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Net Profit Margin (PBT/Sales) |
(%) |
20.89
|
17.98 |
15.56
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Return on Total Assets (PBT/Total Assets} |
(%) |
28.67
|
25.74 |
17.72
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Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.28 |
0.27
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Debt Equity Ratio (Total Liability/Networth) |
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0.19
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0.23 |
1.52
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Current Ratio (Current Asset/Current Liability) |
|
3.80
|
3.70 |
2.86
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LOCAL AGENCY
FURTHER INFORMATION
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Name of the company |
M/s. Artek Surfin
Chemicals Limited |
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Presented By |
Mr. Sushil B.
Goenka (managing Director) |
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1) Date and description of instrument creating the change |
Goods Security Agreement dated11th October 2000 excuted by M/s. Artek Surfin
Chemicals Limited. (Herinafter reffered to aas the Compny) in favour of
Citibank N.A. (Hereinafter referred to as “ the Leader”) |
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2) Amount secured by the charge/amount owing on the securities of charge |
Pre/ post
shipments Finance, Usance Import Less for Less Local working capital
facilities for Rs.10.000 Millions and sight Import LCs and Guarantees for
Rs.500.000 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 |
Hypothecation of
stocks and book debts. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
In consideration
of the ender having agreed to lend advance to the company, working capital facilities,
pre post Shipment finance, Usance Imports Lcs, Guarantees and sight Lcs under
agreement and declarations by the company 1)covenant by tge
company to repay the facility at 2)above and pay interest and all other
monies in the manner set out in the Goods Security Agreement between the
Company and the Lender and to comply with the terms and conditions of the
said Goods Security Agreement 2) The said
stocks and Book Debts hypothecated, to the Lender as and by way of first
exclusive charge 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 therof. 3) The company to
keep the said assets in marketable and good conditions and also insured as
provided therin 4) Power of
entry, Power to take charge and / or possession of seize, recover, receive
appoint and sell, contract, dispatch for realization or otherwise dispose of
or deal with all or any part of the said assets; etc as provider therein. |
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5) Name and Address and description of the person entitled to the charge. |
CITIBANK N A Bandra Kurla
Complex G- Block Bandra (E), Mumbai-51 |
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6) Date and brief description of instrument modifying the charge |
Deed of
Modification dated : 18.11.,2005 Relating to
increase in credit facilities |
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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. |
Deed of
modification dated 24th November 2000 for rs. 25.000 Millions. Deed of Modification dated 8th
Feb 2002 for Rs. 45.000 Millions. Deed of
Modification dated 14th Feburary 2004 for Rs. 79.500 Milliosn |
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8) Particular of Modification specifying the terms , conditions or the extent of operation of the charges in which modification is made and details of the modification |
The original
Charge was Created on 11th October 2000 for securing
Rs.17.500Millions which was modified on 24th November, 2000 for
Rs.25.000 Millions which was further modified on 8th feburary 2002
for Rs. 45.000 Millions which was further modified on 14th Feburary
2004, for Rs. 79.500 Millions hypothecated by way of first exclusive charge
on stocks and book debts forming part of current assets both present and
future. The Bank has now
extended additional the facilities to the company and made a new Deed of
Modification dated 18th Nov,05 to the extent of Rs. 84.000
Millions which is an increases of Rs. 4.500 Millions against the said current
assets (including Stocks and Book
Debts) Hypothecated by way of First exclusive charge to the lender Bothe
present and Future. |
HISTORY
The company was incorporated on 31st January, 1990 at Mumbai in Maharashtra under the name and style of Artek Industrial Refrigeration Private Limited having Company Registration Number 55269. Subsequently, it was converted into a closely held public limited liability company.
The name of the company was changed to present with effect from 18th December, 1990.
The company has geared up by achieving ISO 9002 for manufacturing, supplying and technical backup services.
The company's Vasai plant in Thane district comprises of three two storeyed buildings that house spacious Store Rooms, Mini Pilot Plants, Research & Development, Instrumentation Laboratories, besides state - of -the-art routine manufacturing and processing facilities.
Products
Ø TIN – COBALT PROCESS (CHROMELIKE)
Ø CHROMATE CONVERSION COATINGS & SEALANTS
Ø TIN AND TIN –LEAD ALLOY PLATING PROCESS
Ø CHEMICALS FOR PRINTED CIRCUIT BOARDS
Ø ELECTROPHORETIC COATINGS
Ø PHOSPHATE COATINGS
Ø ANODISING
Ø
BASIC CHEMICALS
Artek's Loyal Patronage Portfolio reads as follows :
Ø Bausch & Lomb (I) Limited
Ø Bimetal Bearings Limited
Ø Bajaj Auto Limited
Ø Bharat Dynamics Limited
Ø Balmer Lawrie Van Leer Limited
Ø Electronics Corporation of India Limited
Ø Eagle Flask Industries Limited
Ø Escorts Yamaha Limited
Ø Fine Line Circuits Limited
Ø Guest Keen Williams Limited
Ø Gujarat Cycles Limited
Ø Indian Telephone Industries Limited
Ø Majestic Auto Limited
Ø Philips India Limited
Ø Roadmaster Industries (I) Limited
Ø Siemens India Limited
Ø STI Biplus Tubing (I) Limited
Ø T.I. Cycles (I) Limited
Research & Development :
Research & Development is the Company's Lifeline. As to how much it matters can be imagined by the fact that 8000 sqft. of prime floor space has been dedicated excusively for Research, with excellent Instrumentation and Efficient Personnel backup, from wherein time and again, in-house innovations have been rolling out.
Also, R&D at Artek, does not aim at only Quality Control and Product Development, but is carried on as a Continuous Responsiblity towards Responsive Customer Needs Fulfilment.
Intensive Research & Development by Artek have been Resulting in the regular and continuous flow of new Chemically Compatible and Technologically highly result oriented Compounds and Products.
Environment Friendly :
Research & Development at Artek just don't aim at or stop with Production, Planning and Costing, Statistics-n-Strategies, but Care-n-Considerations are also exercised to make sure that the Chemical Compositions are most Efficient Economically, and least affective Environmentally. i.e. Pollutant-Free, in case of decompositions by wrong use or decay. The company has been given the status by the Govt. of Maharashtra as an environmentally non polluting.
The company's fixed assets of important value include land & building, plant & machinery, office equipment, furniture and fixtures.
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.41.29 |
|
UK Pound |
1 |
Rs.82.30 |
|
Euro |
1 |
Rs.56.20 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
|
55 |
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 |
|