MIRA
INFORM REPORT
|
Report Date : |
14.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
RELENE PETROCHEMICALS LIMITED |
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Registered Office : |
Second floor,” Chitrakoot”Shreeram Mills, Premises, Ganpatrao Kadam
Marg, Worli, Mumbai;400013, Maharashtra |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
02.04.2001 |
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Com. Reg. No.: |
11-131458 |
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CIN No.: [Company
Identification No.] |
U74140MH2001PLC131458 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR17044G |
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PAN No.: [Permanent
Account No.] |
AABCD7169H |
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Legal Form : |
A Closely Held Public
Limited Liability Company |
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Line of Business : |
Manufacturer of
Petroleum Based Products such as Petrochemicals, High Density Polythene,
Ethylene Vinyl Acetate Co. Polymer |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 26000000 |
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Status : |
New Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part
of Reliance Group, controlled by Mr. Mukesh Ambani. Available information
indicates high financial responsibility of the company. Trade relations are
fair. Payments are usually correct and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. The company has
acquired the petrochemical business of Nocil which is part of Reliance group. |
LOCATIONS
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Registered Office : |
Second floor,” Chitrakoot”Shreeram Mills, Premises, Ganpatrao Kadam
Marg, Worli, Mumbai;400013, Maharashtra |
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Tel. No.: |
91-22-30346000 |
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Factory 1 : |
5, Trans – Thane
Creek Industrial Area, Thane – |
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Area : |
Land - 20
Hectars, Plant – 100000 Sq. ft |
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Location : |
Owned |
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Project Office |
2ND
Floor, Chitrakoot, Shreeram Mills Premises, Ganapatrao Kadam Marg, Mumbai –
600012 |
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Tel. No.: |
91-22-24918470 |
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Fax No.: |
91-22-24953046 |
DIRECTORS
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Name : |
Mr. Rohit Chhannalal Shah |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
01.06.1954 |
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Date of Appointment : |
02.04.2001 |
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Name : |
Mr. Indubhai Fulchan Sheth |
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Designation : |
Director |
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Address : |
401- a |
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Date of Birth/Age : |
02.03.1933 |
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Date of Appointment : |
23.03.2004 |
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Name : |
Mr. Vinay Vishnu Bhat |
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Designation : |
Director |
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Address : |
Plot No:40, Anngan Flat No:11, Behind Mery Land Corner Sion,
Mumbai:400022, |
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Date of Birth/Age : |
16.10.1943 |
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Date of Appointment : |
23.03.2004 |
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Name : |
Mr. V.V. Suryarau |
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Designation : |
Director |
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Address : |
Bunglow No:2, |
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Date of Birth/Age : |
10.07.1943 |
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Date of Appointment : |
23.03.2004 |
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Name : |
Mr. Arind Pyare Modgil |
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Designation : |
Director |
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Address : |
t-9/202 Sea Breze Chs Limited Sectro 16 Plot No:16, Nerul, Navi
Mumbia:400701, |
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Date of Birth/Age : |
10.10.1949 |
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Date of Appointment : |
13.09.2004 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
|
No. of Shares |
|
Deep Mercantile Private Limited |
|
1200 |
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Panchtirth Trading Private Limited |
|
1200 |
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Kalpavri Ksha Trading Private Limited |
|
1300 |
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Nirupama Traders Private Limited |
|
1300 |
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Antariksh Commercials Private Limited |
|
1200 |
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Charishma Investments Private Limited |
|
1200 |
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Avada Trading Company Private Limited |
|
1300 |
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Neelam Merchantile Private Limited |
|
1300 |
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National Organic Chemical Industries Limited |
|
15000000 |
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State Bank Of |
|
39335660 |
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ICICI Bank Limited |
|
11200000 |
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Industrial Development Bank of India Limited |
|
2416000 |
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Industrial Investment Bank of |
|
9429330 |
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Union Bank of |
|
26229330 |
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ABN AMRO Bank |
|
9296000 |
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Corporation Bank |
|
8666660 |
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Canara Bank |
|
4501330 |
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State Bank of |
|
2805330 |
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Sunbright Cement Agencies Private Limited |
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31375980 |
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Infrastructure Leasing and Financial Services Limited |
|
7460000 |
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Reliance Industrial Limited |
|
294000000 |
Equity Share Break Up:
|
Category |
Percentage: |
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Bodies Corporate |
76.00 |
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Nationalized or other banks |
24.00 |
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Total: |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Petroleum Based Products such as Petrochemicals, High Density Polythene,
Ethylene Vinyl Acetate Co. Polymer |
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Products : |
v
Petrochemicals
v
High
Density Polythene v
Co – Polymer
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Brand Names : |
LDP – E, LDAE GNE, LD 69 MB |
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Terms : |
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Selling : |
Contract &
Cash (30 days) |
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Purchasing : |
Contract L/C
& Cash (30 days) |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed Capacity |
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Petrochemicals |
MT/PA |
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298660 |
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High Density Polythene |
MT/PA |
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|
60000 |
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Co – Polymer |
MT/PA |
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|
13500 |
GENERAL INFORMATION
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No. of Employees : |
28 |
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Bankers : |
v
State
Bank of v
HDFC
Bank Limited, Vashi Branch, Sector – 17, Vashi, Navi Mumbai - 400703 |
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Facilities : |
-- |
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Banking
Relations : |
Unknown |
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Auditors : |
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Name : |
Chaturvedi and Shah Chartered Accountant |
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Address : |
714-715, Tulsiani Chambers,212 Nariman Point, Mumbia:400021, |
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Holding Company |
Reliance
Industries Limited and all companies in Reliance (Mukesh Group) |
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Associates/Subsidiaries : |
v
Ambit
Comtrade Private Limited v
Avanti
Merchandise Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
595000000 |
Equity Shares |
Rs.10/- each |
Rs.5950.000 Millions |
|
5000000 |
Preference Shares |
Rs.10/- each |
Rs.50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
461728620 |
Equity Shares |
Rs.10/- each |
Rs.4617.286
Millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
4617.286 |
0.100 |
0.100 |
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2] Share Application Money |
2049.600 |
150.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
4.489 |
0.000 |
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4] (Accumulated Losses) |
(137.919) |
0.000 |
0.000 |
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NETWORTH |
6528.967 |
154.589 |
0.100 |
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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 |
0.000 |
3247.278 |
0.000 |
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TOTAL BORROWING |
0.000 |
3247.278 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
2.900 |
0.000 |
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TOTAL |
6528.967 |
3404.767 |
0.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4193.005 |
4282.099 |
0.000 |
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Capital work-in-progress |
491.237 |
0.000 |
0.00 |
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INVESTMENT |
0.000 |
0.045 |
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 |
1250.261
|
1030.038 |
0.000 |
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Sundry Debtors |
415.549
|
129.513 |
0.000 |
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Cash & Bank Balances |
20.356
|
0.176 |
0.033 |
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Other Current Assets |
0.000
|
0.000 |
0.045 |
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Loans & Advances |
356.206
|
293.274 |
0.000 |
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Total
Current Assets |
2042.372
|
1453.001 |
0.078 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
208.303
|
2329.155 |
0.006 |
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Provisions |
9.346
|
1.223 |
0.000 |
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Total
Current Liabilities |
217.649
|
2330.378 |
0.006 |
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Net Current Assets |
1824.723
|
(877.377) |
0.072 |
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MISCELLANEOUS EXPENSES |
20.002 |
0.100 |
0.000 |
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TOTAL |
6528.967 |
3404.766 |
? |
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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 |
8359.875 |
413.842 |
0.000 |
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Other Income |
33.495 |
0.000 |
0.000 |
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Total Income |
8393.370 |
413.842 |
0.000 |
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Profit/(Loss) Before Tax |
(144.120) |
8.088 |
(0.009) |
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Provision for Taxation |
0.000 |
3.573 |
0.000 |
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Profit/(Loss) After Tax |
(144.120) |
4.515 |
(0.009) |
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Expenditures : |
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Raw Material Consumed |
6521.524 |
510.570 |
0.000 |
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Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
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Consumption of stores and spares parts |
321.611 |
22.378 |
0.000 |
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Increase/(Decrease) in Finished Goods |
(97.073) |
(446.870) |
0.000 |
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Salaries, Wages, Bonus, etc. |
104.806 |
2.649 |
0.000 |
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Managerial Remuneration |
0.124 |
0.000 |
0.000 |
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Payment to Auditors |
0.775 |
0.500 |
0.000 |
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Interest |
136.744 |
4.736 |
0.000 |
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Insurance Expenses |
33.717 |
2.308 |
0.000 |
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Power & Fuel |
820.663 |
76.065 |
0.000 |
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Depreciation & Amortization |
211.960 |
16.690 |
0.000 |
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Other Expenditure |
482.639 |
216.728 |
0.000 |
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Total Expenditure |
1791.428 |
319.676 |
0.000 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
(1.71)
|
1.09 |
-- |
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Net Profit Margin (PBT/Sales) |
(%) |
(1.72)
|
1.95 |
-- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(2.31)
|
0.00 |
(11.53) |
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Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.05 |
0.09 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.03
|
15.07 |
0.06 |
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|
Current Ratio (Current Asset/Current Liability) |
|
9.38
|
0.62 |
13.00 |
LOCAL AGENCY FURTHER INFORMATION
History of the
Subject :
Subject was a
division of National Organic Chemical Industries Limited, which was split in to
3 companies i.e. NOCIL Petrochemicals Limited
NOCIL rubber
Chemical Limited and
NOCIL Plastics Limited in 1998. NOCIL Petrochemicals limited has applied to Mumbai
High Court (application dated
The company has
just received sanction form Mumbai High Court to takeover the plant of NOCIL
and they are yet to commence production.
Business
Subject had
takenover the petrochemicals division of NOCIL Petrochemicals Limited,
Subsidiary of National Organic Chemicals Industries Limited. However pending
completion of the legal formailities the plant is yet to resume production
The company is now
in the process of recruiting the Adminis tration and technical staff. It is
also in the process of modernising the plant.
Company is in the
process of sourcing capital goods from worldwide sources particularly from
Total Investment –
Rs. 2500 Millions (Approx)
The company was
originally Incorporated under the name
of Dream Consultancy Service Private Limited.
And then it was changed
to Real Export Resources Private Limited. The date of change is 22.09.2003. The
name was again changed to present with respect from 15.04.2004.
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 exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.93 |
|
|
1 |
Rs.81.20 |
|
Euro |
1 |
Rs.55.42 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
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|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
- |
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--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
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|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
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 |
|