MIRA
INFORM REPORT
|
Report Date : |
01.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HYDERABAD CHEMICALS LIMITED |
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Formerly Known As : |
HYDERABAD CHEMICALS SUPPLIES LIMITED |
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Registered Office : |
4 -3-377, Devika Mahal, Bank Street, Hyderabad – 500 095, 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 : |
30.01.1954 |
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Com. Reg. No.: |
000736 |
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CIN No.: [Company
Identification No.] |
L24230AP1954PLC000736 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDH00049A |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturer of Chemicals and Pesticides. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 2390144 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported a
experienced and respectable businessmen.
Trade relations are reported as fair.
Business is active. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
4 -3-377, Devika Mahal, Bank Street, Hyderabad – 500 095, Andhra
Pradesh, India |
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Tel. No.: |
91-40-24756927 |
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E-Mail : |
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Factory : |
A 24/25, APIE Balanagar, Hyderabad- 500037 |
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Tel. No.: |
91-40-23773906/23772651/ 247556927 |
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Fax No.: |
91-40-23772595 |
DIRECTORS
|
Name : |
Mr. Nellore Sukumar |
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Designation : |
Managing Director |
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Address : |
6-3-883 / A /10, Padmavati Palace, Punjagutta, Hyderabad, Andhra
Pradesh, India |
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Date of Birth/Age : |
02.10.1951 |
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Date of Appointment : |
24.09.1988 |
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Name : |
Mr. Dipesh Kantisen Shroff |
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Designation : |
Director |
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Address : |
39, Hatkesh Society, N S Road, No.6, Ville Parle (West), Mumbai – 400
056, Maharashtra, India |
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Date of Birth/Age : |
03.03.1960 |
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Date of Appointment : |
21.11.2003 |
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Name : |
Mrs. Shruti Atul Shroff |
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Designation : |
Director |
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Address : |
7, Charotar Society, Old Padra Road, Vadodara – 390 020 |
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Date of Birth/Age : |
24.09.1950 |
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Date of Appointment : |
21.11.2003 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 18.08.2005)
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Names of Shareholders |
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No. of Shares |
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Mrs. Nandini Ramesh Gandhi |
|
13680 |
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Mrs. Nandini Ramesh Gandhi |
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13680 |
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(As on 31.03.2007)
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Category |
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Percentage
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Directors or relatives of directors |
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60.00 |
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Other top fifty (50) shareholders |
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40.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Chemicals and Pesticides. |
PRODUCTION STATUS – As on 31.03.2005
|
Name of the
Product |
Installed
Capacity |
Actual
Production |
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Agro Chemicals
and Pesticides |
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Liquid and Powder formulations |
7800 |
8059 |
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Wind Power |
6.75 mw |
31.31 kwh |
GENERAL
INFORMATION
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Bankers : |
IDPL Colony Branch, Balanagar, Hyderabad – 500037, Andhra Pradesh, India |
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Facilities : |
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Secured Loans as
on 31.03.2005: |
Rs.
(in Millions) |
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a) Working Capital Loan from State Bank of Hyderabad LDPL Colony
Branch, Hyderabad On cash credit Account b) Term Loan from State Bank of India Overseas Branch Abids, Hyderabad (Wind Power Project) |
11.544 4.978 |
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Unsecured Loans
as on 31.03.2005 |
Rs.
(in Millions) |
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From Directors Deferred Sales Liability |
1.147 24.792 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Raja Ram and Company Chartered Accountants |
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Name of the
Auditor: |
Mr. B M Rama Joga Rao |
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Address : |
209, Ameer Mahal Apartments, Hyderguda, Hyderabad – 500 029, Andhra
Pradesh, India |
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Subsidiaries : |
Hyderabad Chemicals Products Private Limited U24239AP1990PTC011356 |
CAPITAL STRUCTURE
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
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1000000 |
Equity Shares |
Rs.10/- each |
Rs.10.000 millions |
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Issued, Subscribed & Paid-up Capital:
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No. of Shares |
Type |
Value |
Amount |
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300000 |
Equity Shares |
Rs.10/- each |
Rs.3.000 millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
3.000 |
3.000 |
3.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
594.536 |
495.194 |
405.633 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
597.536 |
498.194 |
408.633 |
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LOAN FUNDS |
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1] Secured Loans |
92.474 |
58.229 |
16.522 |
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2] Unsecured Loans |
31.262 |
70.360 |
44.661 |
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TOTAL BORROWING |
123.736 |
128.589 |
61.183 |
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DEFERRED TAX LIABILITIES |
41.891 |
0.000 |
0.000 |
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TOTAL |
763.163 |
626.783 |
469.816 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
388.223 |
285.775 |
258.064 |
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Capital work-in-progress |
1.009 |
0.542 |
0.000 |
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INVESTMENT |
36.771 |
36.771 |
36.771 |
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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 |
400.399
|
316.695
|
261.835 |
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Sundry Debtors |
124.571
|
138.202
|
117.782 |
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Cash & Bank Balances |
35.018
|
37.578
|
28.239 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
170.023
|
158.580
|
105.707 |
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Total
Current Assets |
730.011
|
651.055
|
513.563 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
262.340
|
233.184
|
256.486 |
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Provisions |
130.511
|
114.175
|
82.094 |
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Total
Current Liabilities |
392.851
|
347.359
|
338.580 |
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Net Current Assets |
337.160
|
303.696
|
174.982 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
763.163 |
626.783 |
469.816 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
1587.850 |
1483.964 |
1443.471 |
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Other Income |
5.047 |
43.027 |
52.066 |
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Total Income |
1592.897 |
1526.991 |
1495.537 |
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Profit/(Loss) Before Tax |
135.021 |
156.254 |
151.549 |
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Provision for Taxation |
20.019 |
51.300 |
32.360 |
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Profit/(Loss) After Tax |
115.002 |
104.954 |
119.189 |
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Expenditures : |
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Raw Material Consumed |
787.983 |
731.114 |
735.344 |
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Purchases made for re-sale |
97.593 |
101.678 |
121.103 |
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Consumption of stores and spares parts |
4.856 |
0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
(48.394) |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
46.087 |
33.593 |
29.606 |
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Managerial Remuneration |
0.842 |
1.080 |
0.850 |
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Payment to Auditors |
0.187 |
0.160 |
0.160 |
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Interest |
5.840 |
5.637 |
0.844 |
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Insurance Expenses |
2.985 |
2.221 |
2.538 |
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Power & Fuel |
5.175 |
3.211 |
2.926 |
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Depreciation & Amortization |
26.455 |
86.857 |
66.697 |
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Other Expenditure |
528.267 |
492.044 |
450.616 |
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Total Expenditure |
1457.876 |
1457.595 |
1410.684 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
7.22
|
6.87
|
7.97 |
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Net Profit Margin (PBT/Sales) |
(%) |
8.50
|
10.53
|
10.50 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
114.20
|
16.68
|
19.64 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.31
|
0.37 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.86
|
0.96
|
0.98 |
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Current Ratio (Current Asset/Current Liability) |
|
1.86
|
1.87
|
1.52 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
|
Name of the company |
HYDERABAD
CHEMICAL SUPPLIES LIMITED (Hereinafter referred to as the Company) |
|
Presented By |
Mr. N. Sukumar,
Managing Director |
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1) Date and description of instrument creating the change |
29.07.2005 Corporate
Guarantee to M/s Hyderabad Chemical Products Limited i.e. Deed Guarantee
for overall limit of Hyderabad Chemical
products limited Rs.101.000 Millions Guarantee
Agreement in respect of letter of credit and Bank Guarantee limits secured by
third party guarantee for Rs.81.000 Millions |
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2) Amount secured by the charge/amount owing on the securities of charge |
Overall limit of
Hyderabad Chemical Products Limited Rs.101.000 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 |
Raw Materials,
Stock in process and finished goods, Book Debts plant and Machinery, Land and
Building |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interests at
Prime lending rate minus 1% at present 10% p.a. monthly rests Repayable on
demand. Rate of Interests as applicable by the bank from time to time. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of
Hyderabad IDPL Colony
Branch, Kukatpally, Hyderabad - 500037 |
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6) Date and brief description of instrument modifying the charge |
Corporate
Guarantee To Hyderabad Chemical Products Limited Deed Guarantee
for overall limit of Hyderabad Chemical
products limited Rs.101.000 Millions Guarantee
Agreement in respect of letter of credit and Bank Guarantee limits secured by
third party guarantee for Rs.81.000 Millions |
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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. |
Corporate
Guarantee for overall limit of Rs.101.000 to Hyderabad Chemical Products
Limited Details of
Limits: CC Hypothecation
Rs.15.000 Millions DDP Rs.5.000 Millions LC Rs.80.000 Millions BG Rs.1.000 Millions Total
Rs.101.000 Millions |
|
Corporate
identity number (CIN) Foreign company registration number |
L24230AP1954PLC000736 |
|
Name of the
Company |
HYDERABAD
CHEMICALS LIMITED |
|
Address |
4-3-377 / 1 Bank
Street, koti, Hyderabad, Andhra Pradesh, India |
|
This form is for |
Creation of
charge |
|
Type of Charge |
Immovable
Property Movable property
(not being pledge) Corporate
Guarantee of Hyderabad Chemicals Products Limited |
|
Particulars of
the charge holder |
State Bank of
Hyderabad IDPL Colony
Branch, Balanagar, Hyderabad – 500 037, Andhra Pradesh, India E-mail: hyd2_sbh0245@sancharnet.in |
|
Nature or
description of the instrument(s) creating or modifying the charge |
Agreement of
overall limit dated 16.01.2007 Agreement of
Hypothecation of Goods and Assets dated 16.01.2007 Deed of Guarantee
for overall limit dated 16.01.2007 Letter regarding
the grant of individual limits within the overall limit Memorandum of
deposit of title deeds for creation of Charge and also creation of further
charge on properties already mortgaged for term loan / overall limit. Guarantee
agreement to Hyderabad Chemical Products Limited for Rs.161.000 millions |
|
Date of
Instrument |
16.01.2007 |
|
Amount secured by
the charge |
Rs.60.000
millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
(a) Rate of
Interest: 10% per annum to
be reset every 2 years and with a swing option to avail FCNR (B) term Loan at
6 months LIBOR Plus 250 BPS. (b) Terms of
repayment: Five years
inclusive of moratorium period. Term loan to be repaid in 20 quarterly
installments of Rs. 3.000 millions commencing from 30.06.2007 and ending on
31.03.2012. (C ) Margin: Minimum of 40 % (d) Extent and
operation of the charge: Exclusive first
charge on the fixed assets of the proposed project to be situated at Gat no.
156 and 157 admeasuring 1H 46 R and 0 H 45 R vide doc. Nos. 5345/2006 and
5245/2006 respectively, GUDEPANCHANGINI wind farm, SANGLI DISTRICT,
MAHARASHTRA created out of Bank finance. |
|
Short particulars
of the property charged (including location of the property) |
Exclusive 1
charge on the proposed project to be situated at GUDEPANCHANGINI, SANGLI
DISTRICT created out of bank finance.
Extension of EM of Factory L and B of HCPL at Balanagar. Hypothecation of P& M of existing unit
of HCL. I charge on other movable assets.
Pari passu I charge on Wind Mill financed by State Bank of India
acquired through CL II. II charge of FA of wind mill acquired through CL I of
State Bank of India. Hypothecation of
P and M of windmill in the name of HCPL. Corporate guarantee of HCPL. |
|
Whether any of
the property or interest therein under reference is not registered in the
name of the company |
NA |
Fixed Assets
- Land
- Building
- Laboratory Equipment
- Vehicles
- Technical Books
- Land (Wind farm)
- Building (Wind farm)
- Plant and Machinery (Wind farm)
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. 39.97 |
|
UK Pound |
1 |
Rs. 79.53 |
|
Euro |
1 |
Rs. 63.09 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
|