MIRA
INFORM REPORT
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Report Date : |
14.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
PENNAR CHEMICALS LIMITED |
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Registered Office : |
3rd Floor, Saptagiri, Towers, Begumpet, Hyderabad – 500 016, Andhra
Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
04.08.1992 |
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Com. Reg. No.: |
01-14629 |
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CIN No.: [Company
Identification No.] |
U24110AP1992PLC014629 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDP00564E |
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PAN No.: [Permanent
Account No.] |
AABCP3075G |
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Legal Form : |
A Closely held Public Limited Company |
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Line of Business : |
Manufacturers of Fuel Additives |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 198208 |
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Status : |
Good |
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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 fine track
records. Financial position of the company is good. Trade relations are fair.
Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long
-run. |
LOCATIONS
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Registered Office : |
3rd Floor, Saptagiri, Towers, Begumpet, Hyderabad – 500 016, Andhra
Pradesh |
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Tel. No.: |
91-40-27766781 – 83 |
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Fax No.: |
91-40-27765399 |
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E-Mail : |
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Website : |
http://www.kompass.com |
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Factory 1 : |
186/ A, IDA Mallapur, R. R. District, Hyderabad- 500 076, Andhra Pradesh, India |
DIRECTORS
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Name : |
Mr. Wg. Cdr. ( Retd ) Avula
Bharat Bhushan |
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Designation : |
Director |
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Address : |
38, Krishnapuri Colony, West Marredpally, Secunderabad – 500 026,
Andhra Pradesh |
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Date of Birth/Age : |
19.03.1943 |
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Date of Appointment : |
29.08.1997 |
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Name : |
Mr. Venkata Nrupender Rao Joginapally |
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Designation : |
Executive Chairman cum director |
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Address : |
Plot No. 381, Road No.10, Jubilee Hills, Hyderabad – 500 033, Andhra
Pradesh |
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Date of Birth/Age : |
23.06.1945 |
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Date of Appointment : |
04.08.1992 |
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Name : |
Mr. R. S. Sampath |
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Designation : |
Executive Director |
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Address : |
102, Samyuiktha apartments, Raghava Colony Sikhvilla, Secunderabad –
500 009, Andhra Pradesh |
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Date of Birth/Age : |
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Date of Appointment : |
01.11.2006 |
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Directorship in other companies: |
· CIN of the Company: L99999AP1991PLC012557 Name of the company: Pennar International
Limited Designation: Director · CIN of the Company: U72200AP1993PTC015737 Name of the company: Saven Technologies
Private limited Designation: Director |
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Name : |
Mr. R. Krishnan |
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Designation : |
Director |
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Address : |
Flat No. 4C Mayflower Royale, 216 Bhaskar Street, Coimbatore Rspurah,
Tamil Nadu |
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Date of Birth/Age : |
29.11.1926 |
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Date of Appointment : |
26.09.1995 |
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Name : |
Mr. T. N. J. Raman |
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Designation : |
Director |
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Address : |
Flat No. 208, Sagar Apartments, Rajbhavan, Somajiguda – 500 082,
Hyderabad, Andhra Pradesh |
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Date of Birth/Age : |
23.06.1930 |
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Qualification : |
29.08.1992 |
KEY EXECUTIVES
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Name : |
Mr. S. Chidambaram |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Fuel Additives |
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Products : |
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PRODUCTION STATUS as on 31.03.2004:-
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Particulars |
Installed Capacity |
Actual Production |
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31.03.2004 |
31.03.2003 |
31.03.2004 |
31.03.2003 |
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Fuel Additives |
625 KL |
625 KL |
455.75 |
432.00 |
GENERAL
INFORMATION
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No. of Employees : |
120 |
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Bankers 1 : |
IDBI Bank Limited |
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Address: |
Mahavir House, Basheerbagh Square, Hyderabad- 500 029, Andhra Pradesh, India |
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Bankers 2 : |
ICICI Bank Limited |
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Address: |
Nerella House, No. 4, Nagarjuna Hills, Punjagutta, Hyderabad- 500 082, Andhra Pradesh, India |
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Banking Relations
: |
Good |
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Auditors : |
Rambabu and Company Chartered Accountants |
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Address : |
31, Pancom Chambers, 6-3-1090/ 1A, Rajbhavan Road, Somajiguda, Hyderabad- 500 082, Andhra Pradesh, India |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity shares |
Rs. 10/- each |
Rs. 50.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4498065 |
Equity shares |
Rs. 10/-
each |
Rs. 44.980
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
44.981 |
9.996 |
9.996 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4.571 |
36.233 |
30.262 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
49.552 |
46.229 |
40.258 |
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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 |
5.663 |
5.663 |
5.663 |
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TOTAL BORROWING |
5.663 |
5.663 |
5.663 |
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DEFERRED TAX LIABILITIES |
2.025 |
2.362 |
2.955 |
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TOTAL |
57.240 |
54.254 |
48.876 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
14.359 |
15.922 |
17.561 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
12.400 |
7.720 |
0.500 |
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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 |
5.164
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3.960 |
4.519 |
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Sundry Debtors |
15.841
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15.549 |
13.312 |
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Cash & Bank Balances |
11.267
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10.066 |
13.335 |
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Other Current Assets |
13.958
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9.823 |
9.057 |
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Loans & Advances |
0.000
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0.000 |
0.000 |
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Total
Current Assets |
46.230
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39.398 |
40.223 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
7.565
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5.055 |
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Provisions |
8.184
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3.731 |
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Total
Current Liabilities |
15.749
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8.786 |
9.408 |
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Net Current Assets |
30.481
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30.612 |
30.815 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
57.240 |
54.254 |
48.876 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
68.530 |
68.829 |
83.483 |
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Other Income |
1.221 |
1.195 |
1.496 |
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Total Income |
69.751 |
70.024 |
84.979 |
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Profit/(Loss) Before Tax |
9.714 |
10.182 |
9.442 |
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Provision for Taxation |
3.733 |
3.655 |
2.961 |
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Profit/(Loss) After Tax |
5.981 |
6.527 |
6.481 |
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Expenditures : |
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Personnel Costs |
0.000 |
0.000 |
11.691 |
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Materials and Manufacturing Expenses |
0.000 |
0.000 |
38.877 |
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Administrative, Selling , Distribution and
other Expenses |
0.000 |
0.000 |
22.641 |
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Finance Costs |
0.000 |
0.000 |
0.088 |
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Salaries, Wages, Bonus, etc. |
13.873 |
12.745 |
0.000 |
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Managerial Remuneration |
1.637 |
1.530 |
0.000 |
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Payment to Auditors |
0.090 |
0.085 |
0.000 |
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Interest |
0.002 |
0.066 |
0.000 |
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Insurance Expenses |
0.349 |
0.295 |
0.000 |
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Power & Fuel |
0.080 |
0.070 |
0.000 |
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Depreciation & Amortization |
2.607 |
2.262 |
2.238 |
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Other Expenditure |
41.396 |
42.787 |
22.641 |
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Total Expenditure |
60.034 |
59.840 |
98.176 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
8.57
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9.32 |
7.62 |
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Net Profit Margin (PBT/Sales) |
(%) |
14.17
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14.79 |
11.31 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
16.03
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18.40 |
16.34 |
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Return on Investment (ROI) (PBT/Networth) |
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0.19
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0.22 |
0.23 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.43
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0.31 |
0.37 |
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Current Ratio (Current Asset/Current Liability) |
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2.93
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4.48 |
4.27 |
LOCAL AGENCY FURTHER
INFORMATION
The company’s Fixed
Assets important value includes are:
- Land
- Factory Building
- Plant and Machinery
- Equipments
- Technology Fee ACS 82
- Furniture and Fixture
- Vehicles
- Computers
- Marketing License
OTHER INFORMATION:
Rambabu and Company, Chartered Accountants, the auditors of the company retire at the ensuring Annual General Meeting and have confirmed their eligibility and willingness to accept the office, if re-appointed.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.39.28 |
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UK Pound |
1 |
Rs.80.87 |
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Euro |
1 |
Rs.57.68 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
7 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
--- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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58 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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