MIRA
INFORM REPORT
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Report Date : |
13.09.2007 |
IDENTIFICATION DETAILS
|
Name : |
ARKEMA PEROXIDES INDIA PRIVATE LIMITED |
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Registered Office : |
628 Anna Salai, 1st
Floor / Balmer Lawrie House, Teynampet, Chennai, Tamilnadu – 600018 |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
14.03.1985 |
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Com. Reg. No.: |
18-11641 |
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CIN No.: [Company
Identification No.] |
U24111TN1985PTC011641 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEP00227D |
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PAN No.: [Permanent
Account No.] |
AAACE1713F |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer, exporter
and importer of all types of chemicals – hydrogen peroxide, sodium chlorate,
perchlorate, hydrazine and its derivatives for global market. |
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 630000 |
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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 company and part of multi-national corporation. Available information
indicates high financial responsibility of the company. Trade relations are
fair. Financial position is good. Payments are correct and as per
commitments. The company can
be considered good for any normal business dealings. It can be regarded
as a promising business partner in a
medium to long-run. |
LOCATIONS
|
Registered
Office : |
628 Anna Salai, 1st
Floor / Balmer Lawrie House, Teynampet, Chennai, Tamilnadu – 600018, |
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Tel. No.: |
91-44-52197500 / 52197518
/ 42197530 / 42197400 |
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Fax No.: |
91-44-52197600 /
10 / 42197630 / 42197401 |
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E-Mail : |
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Website : |
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Factory : |
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Tel. No.: |
91-4142-39901 |
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Fax No.: |
91-4142-39900 |
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Area : |
15,000 sq.fts.
–owned |
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Branches : |
9, 91 – 44 – 827
3333 / 811 7400 91 – 44 – 826
9359 / 811 2479 Area :
Leased -- 15000 sq.fts Pharma Search
House- Dr. B. G. Kher Raod, Worli – Mumbai-400018, Tel No. : 91-22-24901743/46/47 Fax No. :
91-22-24901755 Ruby House, B
Building, 2nd Floor, Next to old Campa Cola Factory Worli, Mumbai
– 400028, Maharashtra, India Tel No. :
91-22-24387500 Fax No.:
91-22-24387550 Kolkata, Mumbai, |
DIRECTORS
|
Name : |
Mr. Subramanian
Neelakantan |
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Designation : |
Managing Director |
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Address : |
38 Defence
Colony, Chennai – 600032 |
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Date of
Birth/Age : |
04/02/1948 |
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Date of
Appointment : |
11/10/2002 |
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Name : |
Mr. Romuld De
Haut De Sigy |
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Designation : |
Director |
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Address : |
11 Rue
Paramontier 9220 Necillu, France |
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Date of
Birth/Age : |
25/06/1964 |
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Date of
Appointment : |
04/02/2003 |
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Name : |
Mr. Frederic
Dumont |
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Designation : |
Director |
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Address : |
12-Ruedu,
Dardenelles – 75017, |
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Date of
Birth/Age : |
28/03/1956 |
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Date of
Appointment : |
14/03/2005 |
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Name : |
Mr. Frank Tortorici |
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Designation : |
Director |
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Address : |
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Date of
Birth/Age : |
13/06/1949 |
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Date of
Appointment : |
31/05/2005 |
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Name : |
Mr. Isabelle
Husson |
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Designation : |
Director |
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Address : |
52 Rue Du
Ranelash 75016, |
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Date of
Birth/Age : |
25/02/1958 |
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Date of Appointment
: |
26/03/1999 |
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Date of
Ceasing : |
09/11/2004 |
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Name : |
Mr. Richare P
Rower |
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Designation : |
Director |
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Address
: |
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Date of
Birth/Age : |
22/10/1960 |
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Date of
Appointment : |
09/12/2003 |
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Name : |
Mr. Christian Dailly |
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Designation : |
Director |
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Address
: |
68 BIS Reu De Billan Cours |
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Date of
Birth/Age : |
08.05.1948 |
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Date of
Appointment : |
29.11.2006 |
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Name : |
Mr. Suresh Ramachandran |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Vasudevan
Salem Ananthanarauyanan |
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Designation : |
Company Secretary
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Address
: |
202/9 Asiad Colony,
Thirumangalam, Chennai – 600101, |
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Date of
Birth/Age : |
1/02/1956 |
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Date of
Appointment : |
11/10/2002 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
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|
949999 |
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|
1 |
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Total |
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950000 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer,
exporter and importer of all types of chemicals – hydrogen peroxide, sodium chlorate,
perchlorate, hydrazine and its derivatives for global market. |
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Products : |
Ř
Polymerisation
Initiators Ř
Hydrogen
Peroxide Ř
Sodium
Chlorate Ř
Perchlorate
Hydrazine Ř
Cross
linking Agents |
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Exports : |
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Countries : |
Middle East and |
PRODUCTION STATUS
|
Particulars |
Unit |
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Installed
Capacity |
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Polymerisation
Initiators |
Metric Tones |
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|
700 |
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Cross linking
Agents |
Metric Tones |
|
|
200 |
GENERAL INFORMATION
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No. of Employees : |
200 persons --
150 persons in factory and 50 persons in office |
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Bankers : |
Ř
Indian
Overseas Bank, Cr Branch, 738 Anna Salai, Chennai – 600 002, Tamil Nadu, Ř
Indian
Overseas Bank, Commercial and Institutional, Credit Branch, 738 Anna Salai, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Bharat S Raut and
Company Chartered
Accountant |
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Address : |
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Tel. No.: |
91-44-24332533 |
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Fax No.: |
91-44-24328856 |
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Parents
Company : |
Chemplast Sanmar
Limited |
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Collaborators : |
Pennwalt
Corporation, US |
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Associates/Subsidiaries : |
All companies in
Sanmar Group |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4000000 |
Equity Shares |
Rs. 10/- each |
Rs. 40.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
950000 |
Equity Shares |
Rs. 10/- each |
Rs. 9.500 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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SHAREHOLDERS
FUNDS |
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|
|
|
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1] Share Capital |
9.500 |
9.500 |
9.500 |
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3] Reserves &
Surplus |
148.960 |
153.772 |
154.362 |
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NETWORTH
|
158.460 |
163.272 |
163.862 |
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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 |
6.552 |
0.000 |
13.221 |
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TOTAL BORROWING
|
6.552 |
0.000 |
13.221 |
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DEFERRED TAX
LIABILITIES |
11.546 |
0.000 |
0.000 |
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|
|
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TOTAL
|
176.558 |
163.272 |
177.083 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
77.286 |
81.656 |
91.375 |
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Capital work-in-progress
|
6.384 |
1.804 |
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INVESTMENT
|
0.024 |
0.024 |
0.024 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
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Inventories
|
87.779
|
85.619
|
65.848
|
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Sundry Debtors
|
57.362
|
45.818
|
61.651
|
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Cash & Bank Balances
|
5.311
|
15.969
|
5.923
|
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Other Current Assets
|
0.414
|
8.902
|
0.551
|
|
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Loans & Advances
|
13.056
|
26.406
|
11.823
|
Total Current Assets
|
163.922 |
182.714
|
145.796
|
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
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Current Liabilities
|
41.630
|
54.199
|
32.379
|
|
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Provisions
|
29.428
|
48.727
|
27.733
|
Total Current Liabilities
|
71.058 |
102.926
|
60.112
|
|
Net Current Assets
|
92.864 |
79.788
|
85.684
|
|
|
|
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|
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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TOTAL
|
176.558 |
163.272 |
177.083 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
|
Sales Turnover |
331.280 |
328.404 |
374.300 |
|
|
Other Income |
0.000 |
2.878 |
3.098 |
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Total Income |
331.280 |
331.282 |
377.398 |
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|
|
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|
|
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|
Profit/(Loss) Before Tax |
90.789 |
95.260 |
119.575 |
|
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Provision for Taxation |
34.253 |
34.557 |
52.087 |
|
|
Profit/(Loss) After Tax |
56.536 |
60.703 |
67.488 |
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|
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Earnings in Foreign Currency : |
|
|
|
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Total Earnings |
85.339 |
95.658 |
129.169 |
|
|
|
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|
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Imports : |
|
|
|
|
|
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Raw Materials |
|
92.587 |
87.124 |
|
|
Stores & Spares |
|
0.091 |
0.192 |
|
|
Capital Goods |
|
3.614 |
0.000 |
|
Total Imports |
101.612 |
96.292 |
87.316 |
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|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
0.000 |
149.006 |
162.518 |
|
|
Salaries, Wages, Bonus, etc. |
0.000 |
29.555 |
31.334 |
|
|
Repair ad Maintenances |
0.000 |
8.705 |
12.233 |
|
|
Interest |
0.000 |
1.274 |
4.157 |
|
|
Depreciation & Amortization |
0.000 |
13.352 |
13.191 |
|
|
Other Expenditure |
240.491 |
38.068 |
34.388 |
|
Total Expenditure |
240.491 |
239.960 |
257.821 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
PAT / Total Income |
(%) |
17.07
|
18.32 |
17.88 |
|
|
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
27.41
|
29.01 |
31.95 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
37.64
|
36.03 |
50.42 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.57
|
0.58 |
0.73 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.49
|
0.63 |
0.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.31
|
1.78 |
2.43 |
LOCAL AGENCY FURTHER INFORMATION
Fixed
Assets
Land
Building
Plant and Machinery
Furniture and
Fixture
Vehicles
History
The company was
originally incorporated under the name and style of Peroxides India Limited
later w.e.f. 17/02/1995 the name of the company was changed to ELF Atochem Peroxides India Limited. The name was again changed to Atofina
Perosides India Private Limited w.e.f. 28/03/2003. Finally w.e.f. 12/10/2004
the name of the company was changed to present.
Subject is the
first Indian company to manufacture full range of organic peroxides to international
standards.
The company was
originally incorporated as a joint venture between Elf Atochem S.A., France and
Chemplast Limited (Now Chemplast Sanmar Limited) for manufacture of
Polymerisation initiators and cross line agent formulations. Chemplast Sanmar
Limited was the Holding Company with 51% holding in the equity shares and
overseas joint venture partner holding 49% stake. Later, by an agreement, Chemplast Sanmar
Limited decided to retain the marketing and corporate activities and agreed to
the overseas joint venture partner holding 51% stake in the equity and thus
became the Holding Company and Chemplast Sanmar Limited held 49% stake in the
equity.
By a resolution the
company changed the name of the Indian subsidiary from “Elf Atochem Peroxides
India Limited” to “Atofina Peroxides (
Subject imports and
exports chemicals.
Arkema is global
player with its operations and revenue distributed as follows
Ř
France-61%
Ř
North
America-14%
Ř
Europe
(Excluding
Ř
Ř
Rest of
the world-1%
Ř
60
industrial Facilities in Europe including 35 in
Ř
20
industrial facilities in
Ř
10
industrial facilities in Asia including 5 in
Ř
6 Research
Centre- 4 in France, CRRA in Pierre-Benite and CRDE in Saint-Avold, GRL in Lacq
Ř
1 in
the
Ř
1 in
Products
Ř
Hydogen
peroxide is used as a bleaching agent for paper pulp and textile fibers, as an
antiseptic, a chemicals intermediates, and in water treatment.
Ř
Sodium
chlorate and perchlorate are used in paper pulp, weedkiller, batteries,
pyrotechnics, electrometallurgy, and rocket fuel.
Ř
Hydrazine
and its derivatives are used in a large number of application.
Ř
Arkema
is the world’s third largest producer of hydrogen peroxide as well as hydrazine
hydrate and derivatives.
Arkema is a company
conducting international qualitative research and consulting applied to all
aspects of business life.
The company was
founded in 1995 and operates on the main international markets. Its Head
Quarter is located in
Contingencies
Contingencies form
claims, litigation, assessment, fines, penalties, etc, are recorded when it is
probable that a liability incurred, and the amount can be reasonably estimated.
Bankers Charges
Report as per Registry
|
Name of the company |
PEROXIDES INDIA LIMITED |
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Presented By |
P U Aravind,
Secretary |
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1) Date and description of instrument creating the change |
17th
March 1993 Letter of
Hypothecation dated 27th march 1993 and book debts dated
27.03.1993 executed by the company in favour of Indian Overseas Bank
Commercial and Institutional Credit Branch |
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2) Amount secured by the charge/amount owing on the securities of charge |
Cash Credit
facility to the Limited of Rs. 8.500 Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation and
change to the Bank by way of first charge all the book debts, outstanding
moneys receivables, claims and bills which now dye and owing or which may at
any time hereafter during the continuance of this security become due and
owing to company in the course of its business by any person, firm, company
or by the Government or any local body or authority as security for the due
repayment to the Bank at any time on demand at Madras. Hypothecation of
raw martial such as lauric acid, sodium hydroxide, hydrogen peroxide, sulphuric
acid, terriary buty alcohol, lauroyl chloride work in progress and finished
goods. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the
rate of 9.25 % over RBI rate of interest with a minimum of 21.25 % p.a. or
such other rates as may be notified by the bank from time to time with
quarterly rests shall be calculated and charged on the daily balance in the
Bank’s favour due upon the said Cash credit Account until the same is fully
liquidated and shall be paid by the company as and when demand by the Bank. On demand by the
bank the company shall pay to the bank the balance then due to the bank
together with all further charges and expenses to the date of payment. And such other
terms as mentioned in hypothecation of book debts and letter of hypothecation
dated 27.03.1993 |
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5) Name and Address and description of the person entitled to the charge. |
Indian Overseas
Bank Commercial and
Institutional Credit Branch 738 Anna Salai |
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6) Date and brief description of instrument modifying the charge |
Supplemental deed
of hypothecation / pledge dated 7.05.1993 executed by the company in favour
of Indian Overseas Bank for enhancement cash credit from Rs. 20.000 Millions
to Rs. 30.000 Millions Hypothecation of
Book debts dated 07.05.1993 executed by the company in favour of Indian
Overseas Bank Letter of
Hypothecation dated 07.05.1993 executed
by the company in favour of Indian Overseas Bank for the facility of
letter of guarantee of Rs. 3.000 Millions Letter of
Hypothecation dated 07.05.1993 executed
by the company in favour of Indian Overseas Bank for the facility of
Foreign Letter of Credit of Rs. 3.000 Millions Letter dated
03.06.1993 from Indian Overseas Bank, commercial and Institutional Credit
Branch, 738 Anna Salai |
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|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The Cash Credit
facility with Indian Overseas bank has been enhanced to Rs. 30 Millions And also secure
the following facilities Letter guarantee
Rs. 3.000 Millions facility Rs. 3.000 Millions
|
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.47 |
|
|
1 |
Rs.81.07 |
|
Euro |
1 |
Rs.56.17 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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 |
|