MIRA
INFORM REPORT
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Report Date : |
11.05.2007 |
IDENTIFICATION DETAILS
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Name : |
BAYER POLYCHEM [ |
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Registered Office : |
Bayer House, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
15.09.2003 |
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Com. Reg. No.: |
11-142216 |
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CIN No.: [Company Identification No.] |
U24110MH2003PLC142216 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMB11837A |
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PAN No.: [Permanent Account No.] |
AACCB2271M |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Subject produces and markets different veterinary drug products,
for food animals and companion animals. |
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 2000 |
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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 : |
Bayer House, |
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Tel. No.: |
91-22-25711234 |
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Fax No.: |
91-22-25711418 / 25700147 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Stephan Gerlich |
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Designation : |
Chairman |
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Name : |
Mr. D C Shroff |
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Designation : |
Director |
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Name : |
Mr. Christiane Kunze |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Subject produces and markets different veterinary drug
products, for food animals and companion animals. |
GENERAL INFORMATION
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Bankers : |
Not Available |
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Facilities
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-- |
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Banking
Relations : |
-- |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.500 Million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.500 Million |
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
0.500 |
0.500 |
0.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
38.000 |
26.000 |
[24.900] |
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NETWORTH |
38.500 |
26.500 |
[24.400] |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
44.000 |
22.500 |
0.000 |
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TOTAL
BORROWING |
44.000 |
22.500 |
0.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
82.500 |
49.000 |
[24.400] |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
53.900 |
59.000 |
215.500 |
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Capital work-in-progress |
0.000 |
0.100 |
16.700 |
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INVESTMENT |
0.000 |
7.500 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
17.600
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17.800 |
203.300 |
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Sundry Debtors |
18.600
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35.900 |
404.000 |
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Cash & Bank Balances |
5.500
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0.000 |
14.400 |
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Loans & Advances |
25.600
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17.800 |
61.300 |
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Total Current Assets |
67.300
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71.500 |
683.000 |
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Less :
CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
33.600
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70.500 |
917.200 |
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Provisions |
5.100
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18.600 |
22.400 |
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Total Current Liabilities |
38.700
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89.100 |
939.600 |
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Net Current Assets |
28.600
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[17.600] |
[256.600] |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
82.500 |
49.000 |
[24.400] |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
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Sales Turnover |
120.200 |
962.600 |
234.100 |
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Other Income |
6.200 |
41.200 |
[8.500] |
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Total Income |
126.400 |
1003.800 |
225.600 |
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Profit/(Loss) Before Tax |
20.000 |
82.700 |
0.500 |
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Provision for Taxation |
8.000 |
31.800 |
25.400 |
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Profit/(Loss) After Tax |
12.000 |
50.900 |
[24.900] |
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Earnings in Foreign Currency : |
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Export Earnings |
22.320 |
NA |
NA |
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Total Earnings |
22.320 |
NA |
NA |
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Expenditures : |
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Raw
Materials |
40.400
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554.100
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111.800
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Excise
Duty |
13.600
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36.200
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14.300
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Power
& Fuel Cost |
0.000
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14.700
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0.000
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Other
Manufacturing Expenses |
14.800
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128.500
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29.500
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Employee
Cost |
17.600
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69.800
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15.800
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Selling
and Administration Expenses |
9.200
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84.500
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36.500
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Miscellaneous
Expenses |
1.700
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7.000
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4.700
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Interest
& Financial Charges |
1.800
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2.500
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0.500
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Depreciation
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7.300
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23.800
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12.000
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Total Expenditure |
106.400 |
921.100 |
225.100 |
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KEY
RATIOS
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PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
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Debt-Equity
Ratio |
1.02 |
10.71 |
0.00 |
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Long
Term Debt-Equity Ratio |
0.35 |
10.71 |
0.00 |
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Current
Ratio |
0.81 |
0.73 |
0.73 |
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TURNOVER
RATIOS |
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Fixed
Assets |
1.67 |
6.44 |
3.09 |
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Inventory |
6.79 |
8.71 |
3.45 |
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Debtors |
4.41 |
4.38 |
1.74 |
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Interest
Cover Ratio |
12.11 |
21.84 |
2.00 |
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Operating
Profit Margin(%) |
24.21 |
8.14 |
5.55 |
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Profit
Before Interest And Tax Margin(%) |
18.14 |
5.67 |
0.43 |
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Cash
Profit Margin(%) |
16.06 |
6.50 |
-5.51 |
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Adjusted
Net Profit Margin(%) |
9.98 |
4.03 |
-10.64 |
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Return
On Capital Employed(%) |
33.16 |
443.90 |
0.00 |
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Return
On Net Worth(%) |
36.92 |
3695.24 |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
Operations:
The gross total turnover for the year ended 31st December, 2005
amounted to Rs.107.58 million as compared to Rs.916.36 million for the last year
and profit after tax amounted to Rs.12.00 million as against Rs. 50.92 million
for the previous year.
Corporate
Governance:
The Company is a 100% subsidiary of Bayer CropScience Limited but is not its
'material non-listed Indian subsidiary', As per Clause 49 of the listing
agreement 'material non-listed Indian subsidiary' means an unlisted subsidiary,
incorporated in India, whose turnover or net worth (i.e. paid up capital and
free reserves) exceeds 20% of the consolidated turnover or net worth respectively,
of the listed holding company and its subsidiaries in the immediately preceding
accounting year. The turnover of the Company is 2% of its holding company and
the net worth of the Company is 1% of its holding company. Hence the provision
relating to appointment of a independent director of the holding company on the
Board of the Company is not applicable.
However, the Board of the Company comprise of two independent Directors; Mr.
K.R.V. Subrahmanian and Mr. D.C. Shroff.
The financial statements and investments made by the Company are reviewed by
the Audit Committee and the Board of Directors of Bayer CropScience Limited,
the 100% holding Company. The minutes of the Board meetings of the Company are
also placed at the Board meeting of the holding company.
The Company, based on the recommendation of Bayer CropScience Limited, has also
formulated Code of Conduct for Directors, Code of Business Conduct for its
employees, Whistle Blowing Policy and a Sexual Harassment Policy. The above
policies have been disseminated to all concerned.
AS PER
WEBSITE
Bayer Group of Companies in
Bayer CropScience Limited, constitutes the core cropscience company and
has production facilities at the Bayer sites in Thane, Himatnagar and
Ankleshwar. With the acquisition of Aventis Cropscience Limited worldwide,
Bayer is the undisputed leader in the crop protection business in
Bayer Diagnostics India Limited, with its headquarters and production
facilities in
Bayer Pharmaceuticals Private Limited, was established in July 2000 and
is a wholly owned pharmaceutical subsidiary of Bayer Industries Limited. The
company handles the pharmaceutical sales and marketing operations, and has the
flexibility to speed up investment in new product launches and intensify
research and development activities in
Bayer
MaterialScience Private Limited is one of the largest producers of
polymers and high-performance plastics. Its innovative development in coatings,
adhesives, insulating materials and sealants, polycarbonates and polyurethanes
significantly enhance our lives, particularly in the automotive and
construction, electrical and electronics, household, sports and leisure
sectors. The Company has a plant in Cuddalore, near Chennai, which manufactures
thermoplastic polyurethanes. The Company is also in the process of setting up a
'System House' in
Bayer
BioScience Private Limited, headquartered in
Bilag
Industries Private Limited, is a group company of Bayer CropScience.
With its competitive technology, Bilag is a center of excellence for
manufacturing and process development chemistry. It is one of the largest
manufacturers of synthetic pyrethroids in the world.
Bayer
Polychem (
Bayer Polychem India Limited produces and markets different
veterinary drug products, for food animals and companion animals. It is one of
the leading and most successful global suppliers of veterinary specialties and
ranks internationally. The company is on the look-out for suitable candidates
for its sales operations. Bayer Animal Health strictly follows ethical business
policies and code of conduct.
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.41.34 |
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1 |
Rs.81.81 |
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Euro |
1 |
Rs.55.74 |
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 |
YES |
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--AFFILIATION |
YES/NO |
YES |
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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 |
|
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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