MIRA INFORM REPORT

 

 

Report Date :

27.10.2007

 

IDENTIFICATION DETAILS

 

Name :

SAVITA POLYMERS LIMITED

 

 

Registered Office :

66/67, Nariman Bhavan, Nariman Point, Mumbai – 400021

 

 

Country :

India

 

 

Financials (as on) :

31.03.2004

 

 

Date of Incorporation :

10.03.1992

 

 

Com. Reg. No.:

11-65826

 

 

CIN No.:

[Company Identification No.]

U74999MH1992PTC065826

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS16468E

 

 

Legal Form :

Subject is a closely held public limited liability company.

 

 

Line of Business :

Subject acts as Manufacturers, Buyers, Sellers, Importers, Exporters, Distributors and Dealers in all kinds of Polymers including Additives for Lubricating, Crude and Fuel Oils including Dispersants, Corrosion and Oxidation, Cetane Improvers, Multifunctioner and Cepp Additions, Crude Flow Improvers, Pour Point Depressants, Viscosity Index Improvers and Additive Packages and Intergediaters.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

 

 

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Maximum Credit Limit :

USD 1500000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are 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

 

Registered Office :

66/67, Nariman Bhavan, Nariman Point, Mumbai – 400021, India

Tel. No.:

91-22-22883061/2/3/4

Fax No.:

91-22-22029364

E-Mail :

savitacorp@vsnl.com

Website :

http://www.savita.com

 

 

Corporate Office :

66/67, Nariman Bhavan, Nariman Point, Mumbai – 400021, India

Tel. No.:

91-22-22883061/2/3/4

Fax No.:

91-22-22029364

E-Mail :

savitacorp@vsnl.com

 

 

Factory 1 :

A-2/1, MIDC Industrial Estate, Mahad,

District Raigad – 402301, Maharashtra, India

 

 

Factory 2 :

54-A, Piparia Industrial Estate, Silvassa – 396230, Union Territory

 

 

Branches :

>                      Central Region

190, Bharat Nagar, J. K. Road, P. O. Piplani, Bhopal - 462021

Madhya Pradesh, India

Fax. No. 91-755-2757987

 

>                      Eastern Region

209, Acharya Jagdish Chandra Bose Road,

Kamani Estate, 4th Floor,

Kolkata – 700017, West Bengal

Fax. No. 91-33-22471872

E-Mail: savitacorp@vsnl.com

 

>                      Southern Region

Plot No. 7, P & T, Colony, Trimulgherry Post,

Hyderabad – 500015, Andhra Pradesh

Fax. No. 91-40-27747880

 

>                      Nothern Region

1004, Akash Deep, Barkhamba Road,

New Delhi – 110001, India

Fax. No. 91-11-23312447

 

 

DIRECTORS

 

Name

Mr. Gautam N. Mehra

Designation

Director

Date of Birth

5th August, 1961

Date of Appointment

10th March, 1992

Address

121, Silver Arc, Neapeon Sea Road, Mumbai – 400006, India

 

 

Name

Mr. Swaraj N. Mehra

Designation

Director

Date of Birth

12th October, 1936

Date of Appointment

8th April, 1993

Address

121, Silver Arc, Neapeon Sea Road, Mumbai – 400006, India

 

 

Name

Mr. Vasant D. Narkar

Designation

Director

Date of Birth

12th July, 1941

Date of Appointment

28th February, 2001

Address

72, Orchids, 73 Palli Hill, Mumbai – 400050, India

 

 

Name

Mr. N K Mehra

Designation

Chairman

 

 

KEY EXECUTIVES

 

Name :

Mr. Uday C. Rege

Designation :

Company Secretary

Address :

23/1, Marathan Bhuwan, Near Ram Mandir, Subhash Road, Vile Parle, Mumbai 400057, India

Date of Birth/Age :

23rd December, 1965

Date of Appointment :

1st August, 1997

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

 

 

 

Savita Chemicals Limited

 

10000

Khatri Investment Private Limited

 

23100

Mansukhmal Investment Private Limited

 

23100

Reshma G. Mehra

 

100

Naved Investment Private Limited

 

100

Mansukhmal Investment Private Limited

 

77000

Gautam N. Mehra

 

73600

Swaraj N. Mehra

 

480000

Total

 

687000

 

 

BUSINESS DETAILS

 

Line of Business :

Subject acts as Manufacturers, Buyers, Sellers, Importers, Exporters, Distributors and Dealers in all kinds of Polymers including Additives for Lubricating, Crude and Fuel Oils including Dispersants, Corrosion and Oxidation, Cetane Improvers, Multifunctioner and Cepp Additions, Crude Flow Improvers, Pour Point Depressants, Viscosity Index Improvers and Additive Packages and Intergediaters.

 

 

Products :
  • Additives for Lubricating
  • Crude and Fuel Oils including Dispersants
  • Corrosion and Oxidation
  • Cetane Improvers
  • Multifunctioner and Cepp Additions
  • Crude Flow Improvers
  • Pour Point Depressants
  • Viscosity Index Improvers
  • Additive Packages
  • Intergediaters

·         Cable Filling Compound

·         Micro Crystalline Waxes

  • Petroleum Jelly

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

 

 

 

 

 

Filling Compounds

MT

45450

27150

2,891

Micro Crystalline

MT

36000

30900

3,653

Flow Improvers

MT

5000

1500

0

Speciality Oils

KL

77500

12000

3,540

 

 

GENERAL INFORMATION

 

No. of Employees :

1200

 

 

Bankers :
  • Union Bank of India

      Nariman Point, Mumbai – 400021, India

 

  • State Bank of India

 

  • Corporation Bank

            Mumbai – 400001, Maharashtra, India

 

 

Facilities :

Secured Loans

 

Subject enjoys cash credit facility of Rs. 1.326 million from its bankers against hypothecation of inventories and receivables and guaranteed by Savita Chemicals Limited, an associate company, as on 31.03.2003

 

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Bansal & Associates

Chartered Accountants

Address :

2, Rajaben Chambers, Nanbhai Lane, Fort, Mumbai – 400001, India

 

 

Associates/Subsidiaries :

>                      Savita Chemicals Limited

Refineries:

>         17-A, Thane-Belapur Road, P. O. – Vashi,

Navi Mumbai – 400703, Maharashtra

>         Plot No. 10/2, Kharadpada, P. O. – Naroli,

Silvassa – 396230, India

E-Mail: savitacorp@vsnl.com

 

>         Lubes Division

       71, Maker Chamber VI, Nariman Point,

       Mumbai – 400021, India

                   Tel. No. 91-22-22027452/228500092

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

2000000

Equity Shares of each

Rs.  10/-

Rs. 20.000 million

3000000

11% Cumulative Redeemable Pre. Shares fully paid up

Rs. 10/-

Rs. 30.000 million

 

Total

 

Rs. 50.000 million

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

610000

Equity Shares of each

Rs. 10/-

Rs. 6.100 million

2000000

11% Cumulative Redeemable Pre. Shares fully paid up

Rs. 10/-

Rs. 20.000 million

 

 

 

 

 

Total

 

Rs. 26.100 million

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2004

31.03.2003

31.03.2002

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

26.100

26.100

26.100

2] Reserves & Surplus

339.800

334.564

357.998
NETWORTH

365.900

360.664

384.098

LOAN FUNDS

 

 

 

1] Secured Loans

0.300

1.325

0.000

2] Unsecured Loans

17.400

42.248

42.197
TOTAL BORROWING

17.700

43.573

42.197

DEFERRED TAX LIABILITIES

0.000

22.068

0.000

 

 

 

 
TOTAL

383.600

426.305

426.295

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

109.400

117.961

130.163

Capital work-in-progress

0.000

0.988

0.979

 

 

 

 

INVESTMENTS

78.400

73.473

95.354

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

Inventories

144.100

127.277

114.283

Sundry Debtors

71.100

95.884

91.045

Cash & Bank Balances

6.800

7.073

5.477

Loans & Advances

67.900

61.176

48.791

Total Current Assets

289.900

291.410

259.596
Less: CURRENT LIABILITIES & PROVISIONS

 

 

 

Current Liabilities

91.600

57.527

59.797

Provisions

2.500

0.000

0.000
Total Current Liabilities

94.100

57.527

59.797

Net Current Assets

195.800

233.883

199.799

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 
TOTAL

383.600

426.305

426.295

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2004

31.03.2003

31.03.2002
Sales Turnover [including other income]

480.800

420.400

411.642
 

 

 

 
Profit/(Loss) Before Tax

7.700

1.500

7.961
Provision for Taxation

0.000

0.000

0.000
Profit/(Loss) After Tax

7.700

1.500

7.961
 

 

 

 
Export Value

2.712

70.441

29.859
 

 

 

 
Import Value

157.138

207.936

105.964
 

 

 

 
Total Expenditure

463.800

407.900

403.680

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2004

31.03.2003

31.03.2002

PAT / Total Income

(%)

1.60

0.35

1.93

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

1.60

0.35

1.93

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.61

0.31

1.63

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.02

0.004

0.02

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.30

1.34

1.26

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.08

5.06

4.34

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

Subject was incorporated on 10th March 1992 at Mumbai in Maharashtra having Company Registration Number 11-65826.

 

Research and Development:

 

The core of group’s sustained pioneering status lies a strong R & D base and a corporate culture that encourages experimental efforts to fulfill customer requirements.

 

This continuous activity at R & D may not be directly visible to customers, but is certainly felt from the string of pioneering products. The ISO 9001 certification by DNV, the Netherlands only exemplifies its commitment to consistency and quality.

 

A team of highly competent scientists and most sophisticated equipment provide the flexibility to develop and deliver tailor-made products to suit individual customer’s needs. Since the seventies, Savita Group’s R & D is one of the most competent Research Centres in Petroleum Specialities recognized by the Department of Science and Technology, Government of India.

This focus on R & D has paid rich dividends in the form of 9 pioneering products ranging from Petroleum Sulphonates and White Oils to Telecom Cable Filling Compounds.  

 

International Business:

The International Business Division of Savita Group was set up in 1993 with a dedicated group of skilled professionals and a strong leadership. With a sharp customer-focus and an innovative attitude, the Savita Group is today India’s largest exporter of Petroleum Specialty Products.

 

It exports its products across the globe and is known for its customisation, ISO 9001 Quality System and innovative packaging like Flexi tanks, ISO tanks and optimised drum-stacking systems. Today, its global reputation is that of an ethical and reliable company with an efficient distribution channels.

 

Quality Assurance:

Sophisticated spectroscopic and analytical equipment, adherence to international quality standards and ISO 9001 certified quality systems give quality assurance a cutting edge over other petroleum specialty manufacturing companies. This proven track record of Quality Assurance over a long period has fetched ‘Green Channel Vendor’ status from several esteemed customers.

 

Subject is a part of Savita Group.

 

The group’s product range includes:

 

>                      IDEMITSU - Automotive and Industrial Lubricants

Above the collaboration with Idemitsu of Japan, Savita has made available to customers in India, the   Idemitsu range of Automotive Lubricants – Japan’s leading Automotive Lubricating Oils, and the Daphne range of Industrial Lubricants – rated one of the best in the world.

>                      SAVONOL – Liquid Paraffin

>                      TRANSOL – Transformer Oil

>                      TECHNOL – White Oil

>                      SAVOGEL – Petroleum Jellies

>                      SAVOFIL/SAVOFLOD – Cable Filling Compound

>                      VITAGEL – Optic Fibre Cable Filling Compound

>                      SAVOFLOW – Pour Point Depressants

>                      SULFOPET/SULFOSYN – Petroleum Sulfonates

>                      SAVOWAX – Waxes

 

Subject offers cable – flooding compounds (SP – 9) that are used in jelly filled telecommunication cable to prevent water seepage through polyal and core wrap. These compounds also act as absorbers for external shocks. The compounds are compatible with normal sheathing materials and polyal. Recommended application temperature is 140 °C, which may be altered to suit individual requirements.

 

The company’s fixed assets of important value include Freehold Land, Leasehold Land, Buildings, Plant and Machinery, Furniture and Fixtures, Office Equipments and Vehicles.

 

OPERATIONS
The Company recorded an increase in sales by 27% inspite of severe competition in the market. The steep depreciation the value of the rupee against the US Dollar resulted in an abnormal increase in the cost of raw materials which led to depression in the company's profits during the year under review.  
 
We hope that more stability in the value of the rupee against international currencies will enable the company to witness healthy growth in profits during the current year.  

 

FINANCIALS

No subsequent financials could be available.

 

Management of the Company remained non-cooperative during current investigation.

 

Form 8

 

Bankers Charges Report as per Registry

 

Name of the company

SAVITA POLYMERS LIMITED

Presented By

UNION BANK OF INDIA – INDUSTRIAL FINANCE BRANCH

1) Date and description of instrument creating the change

Agreement of Goods, Debts and Assets dated 7.03.1994.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 16.000 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

[a] Hypothecation of raw materials, stock in progress, fished goods stores and spares which shall include all product goods and moveable property of any kind now or at the disposal of the borrower and which are now stored or being stored or which hereafter may from time to time be brought into or stored or be in or about the borrower a premises or godowns at A-2/a, 2/2, MIDC Industrial Estate, Mahad, Raigad 402 301 or wherever else the same may be.

 

[b] hypothecation of the borrower book debts, outstanding, monies, receivables, claims and bills which are now due and owing or which may be at any time hereafter during the continuance of this security becoming due and owing to the borrower in the course of its business by any person or party including any government or any local or public body or authority.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest at the rate of 4% per annum over RBI rate for demand loans from time to time with a minimum of 16% per annum or any rate as may from time to time be fixed by the bank.

Margin : 25%

5) Name and Address and description of the person entitled to the charge.

Union Bank of India

Industrial Finance Branch, Union Bank Bhavan, 1st floor, 239, Vidhan Bhavan Marg, Nariman Point, Bombay 400 021.

6) Date  and brief description of instrument modifying the charge

Hypothecation Agreement of goods, debts and assets

Dated 23.05.1996

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.

The original charge dated 07.03.1994 for Rs. 16.000 Millions is hereby modified by granting am additional sum of Rs. 2.000 Millions thereby enhancing the limit form Rs. 16.000 Millions to Rs. 18.000 Millions against the same security as stated in column no. 3 above.

 

Interest at the rate of 6.75% per annum above the RBI rate for Demand loans from time to time with a minimum rate of  18.75% per annum or at any rate as may from time to time be fixed by the bank.

Margin : 25%

 

 

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. 39.51

UK Pound

1

Rs. 81.16

Euro

1

Rs. 56.76

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--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

 

50

 

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.

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions