MIRA
INFORM REPORT
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Report Date : |
08.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
HARYANA LEATHER
CHEMICAL LIMITED |
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Registered Office : |
72-77, HSIDC
Industrial Estate, Hansi Road, Jind - 126 102, Haryana |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
22-01-1985 |
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Com. Reg. No.: |
19905 |
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CIN No.: [Company
Identification No.] |
L74999HR1985PLC019905 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKH02403C |
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PAN No.: [Permanent
Account No.] |
AAACH3955N |
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Legal Form : |
Public Limited
Liability Company. The company shares are listed on the stock exchanges. |
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Line of Business : |
Manufacturing of
leather acrylic emulsion, leather lubricating preparation and leather
finishing preparation. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 507228 |
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Status : |
Satisfactory |
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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
as experienced and respectable businessman. Trade relations are reportated as
fair. Business is active. Payments are usually correct and as per
commitments. The company can
be considered normal for any business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office / Factory : |
72-77, HSIDC
Industrial Estate, Hansi Road, Jind - 126 102, Haryana, INDIA. |
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Tel. No.: |
91-1681-225662 /
225899 / 226645 |
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Fax No.: |
91-1681-225101 |
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E-Mail : |
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Website : |
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Head Office : |
B-316-319,
Somdutt Chambers I, 5, Bhikaji Cama Place, New Delhi - 110 066, INDIA. |
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Tel. No.: |
91 - 11 - 2617 1967
/ 2616 3268 |
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Fax No.: |
91 - 11 - 2618
2705 |
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Corporate
Office : |
1004, Bhikaji
Cama Bhawan, Bhiakaji Cama Place, New Delhi - 110 066, India |
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Tel. No.: |
91-11-26171967 /
26106673 / 26163268 |
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Fax No.: |
91-11-26182705 |
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E-Mail : |
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Factory 1 /
EOU Division : |
52-53, HSIDC, Industrial Estate, Hansi Road, Jind - 126 102 (Haryana),
India |
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Factory 2 : |
72-77 Industrial Area, Hansi Road, Jind – 126102, India |
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Branch: |
Chennai No.2, 3rd
floor, Raheja Complex, 834, Anna Salai, Chennai - 600 002, Tamilnadu, INDIA. |
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Tel. No.: |
91-44-2852 3088 |
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Branch: |
Kolkata 10-C, Topsia
Road, 2nd Lane, Opp. Bani Tyres, Calcutta - 700 039, West Bengal,
INDIA |
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Tel. No.: |
91-33-2343 8625 |
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Fax No.: |
91-33-2343 8680 |
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Branch : |
Agra CU-2, Rashmi Palace,
Sultan Ganj Crossing, Kamla Nagar, Agra - 282 005, New Delhi, INDIA |
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Tel. No.: |
91-562-2385363 |
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Fax No.: |
91-562-2351843 |
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Technical
Service Centres : |
· Kolkata, · East India, · Ambur, · South India |
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Representatives
offices: |
· Italy · China · Turkey · Russia · Poland · Indonesia |
DIRECTORS
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Name : |
Mr. Pankaj Jain |
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Designation : |
Managing Director |
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Name : |
Mr. N K Jain |
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Designation : |
Director |
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Name : |
Mr. V K Garg |
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Designation : |
Director |
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Name : |
Mr. H K Gupta |
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Designation : |
Director |
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Name : |
Mr. H C Dutta |
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Designation : |
Director |
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Name : |
Mr. K S V Menon |
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Designation : |
Director |
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Name : |
Mr. Massimo
Medini |
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Designation : |
Director |
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Name : |
Mr. Piero
Tranchinetti |
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Designation : |
Director |
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Name : |
Mr. Sippy Jain |
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Designation : |
Alternate
Director |
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Name : |
Mr. Pradeep Behl |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Ashok Yadav |
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Designation : |
Company Secretary |
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CORPORATE EXECUTIVES |
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Dr. PL. Maurya |
General Manager (Works) |
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Mr. A.K. Nanda |
A.G.M. - Maintenance |
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Mr. A.K. Gupta |
A.G.M. – Materials |
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Mr. Ramesh Goyal |
A.G.M. – Production |
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Mr. Neeraj Bishnoi |
A.G.M. – Marketing |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (As on 31.03.2007) |
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No. of Shares |
Percentage of
Holding |
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PROMOTERS'
HOLDING |
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Promoters |
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Indian Promoters |
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1277748 |
26.00% |
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Foreign Promoters |
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- Individuals |
138190 |
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- Bodies Corporate |
768470 |
906660 |
18.50% |
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Sub total (A) |
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2184408 |
44.50% |
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Public Holding |
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Mutual Fund / UTI |
7800 |
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Financial Institutions / Banks
|
304900 |
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Bodies corporate |
396200 |
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Individual |
2009662 |
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Individuals – NRI |
3900 |
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Others |
1600 |
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Sub
total (B) |
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2724062 |
55.50% |
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Total |
4908470 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of
leather acrylic emulsion, leather lubricating preparation and leather
finishing preparation. |
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Products : |
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PRODUCTION STATUS (as on 31.03.2007):-
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Leather Chemicals and Auxiliaries, Acrylic Emulsions and Adhesives |
MT |
3910.0 |
3644.21 |
GENERAL
INFORMATION
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Suppliers : |
· Kota Chemicals · National Casein Company · Yoyo Chemicals · Veekay Chemicals · Dhiren Chemicals · Niranjan Container · Acmefil Engg. System · Hindustan Chemicals · Industrial General Products Private Limited · ReenaChem · United Pestichem · Ester & Solvents · Suru Chemicals |
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No. of Employees : |
Around 200 |
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Bankers : |
State Bank of
India, Jind, Haryana. |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. C. Dewan &
Company Chartered
Accountants |
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Address : |
Panchkula |
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Collaborators : |
ICAP Sira Chemicals
and Polymers SPA, Italy |
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Associates/Subsidiaries : |
NK Jain
Instrument Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity Shares |
Rs. 10/- each |
Rs, 60.000 Millions |
Issued, Subscribed
& Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
4908470 |
Equity Shares |
Rs. 10/- each |
Rs. 49.085 Millions |
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 |
49.084 |
49.085 |
49.084 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
77.723 |
65.574 |
54.888 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
126.807 |
114.659 |
103.972 |
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LOAN FUNDS |
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1] Secured Loans |
1.707 |
1.504 |
0.666 |
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2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING
|
1.707 |
1.504 |
0.666 |
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DEFERRED TAX
LIABILITIES |
12.430 |
12.801 |
13.108 |
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TOTAL
|
140.944 |
128.964 |
117.746 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
64.198 |
62.103 |
59.672 |
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Capital work-in-progress
|
1.559 |
0.339 |
2.194 |
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INVESTMENT
|
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
|
27.085
|
24.657
|
16.158 |
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Sundry Debtors
|
87.170
|
71.782
|
69.083 |
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Cash & Bank Balances
|
0.765
|
3.273
|
2.150 |
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Other Current Assets
|
0.000
|
0.000
|
0.000 |
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Loans & Advances
|
13.573
|
9.223
|
6.245 |
Total Current Assets
|
128.593
|
108.935
|
93.636 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
53.407
|
42.413
|
37.756 |
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Provisions
|
|
0.000
|
0.000 |
Total Current Liabilities
|
53.407
|
42.413
|
37.756 |
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Net Current Assets
|
75.187
|
66.522
|
55.880 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
140.944 |
128.964 |
117.746 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
237.287 |
181.301 |
166.229 |
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Other Income |
2.579 |
1.658 |
1.210 |
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Total Income |
239.866 |
182.959 |
167.439 |
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Profit/(Loss) Before Tax |
19.509 |
15.536 |
8.606 |
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Provision for Taxation |
4.489 |
4.850 |
3.587 |
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Profit/(Loss) After Tax |
15.020 |
10.686 |
5.019 |
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Earnings in Foreign Currency : |
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Export Earnings |
100.658 |
60.594 |
41.318 |
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Total Earnings |
100.658 |
60.594 |
41.318 |
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Imports : |
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Raw Materials |
26.002 |
14.337 |
11.679 |
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Capital Goods |
3.286 |
0.000 |
1.569 |
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Total Imports |
29.288 |
14.337 |
13.248 |
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Expenditures : |
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Raw Material Consumed |
157.007 |
114.233 |
114.375 |
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Manufacturing, Administrative and Distribution
Expenses |
55.202 |
45.959 |
37.613 |
|
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Financial Expenses |
1.954 |
1.602 |
1.645 |
|
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Depreciation & Amortization |
6.194 |
5.629 |
5.200 |
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Other Expenditure |
0.000 |
0.000 |
0.000 |
|
Total Expenditure |
220.357 |
167.423 |
158.833 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales
Turnover |
54.800 |
50.200 |
54.700 |
|
Other
Income |
0.300 |
1.100 |
2.000 |
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Total
Income |
55.000 |
51.300 |
56.700 |
|
Total
Expenditure |
49.500 |
46.900 |
52.100 |
|
Operating
Profit |
5.600 |
4.400 |
4.600 |
|
Interest |
0.200 |
0.200 |
0.400 |
|
Gross
Profit |
5.400 |
4.200 |
4.200 |
|
Depreciation |
1.700 |
1.600 |
1.600 |
|
Tax |
0.800 |
0.600 |
1.100 |
|
Reported
PAT |
2.900 |
2.000 |
1.500 |
KEY RATIOS
|
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.01 |
0.01 |
0.02 |
|
Long Term
Debt-Equity Ratio |
0.01 |
0.01 |
0.01 |
|
Current Ratio |
1.95 |
1.89 |
1.77 |
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TURNOVER
RATIOS |
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Fixed
Assets |
2.02 |
1.65 |
1.61 |
|
Inventory |
10.12 |
9.79 |
11.10 |
|
Debtors |
3.30 |
2.84 |
2.75 |
|
Interest
Cover Ratio |
10.75 |
10.75 |
6.38 |
|
Operating
Profit Margin(%) |
10.56 |
11.39 |
8.28 |
|
Profit
Before Interest And Tax Margin(%) |
8.20 |
8.59 |
5.49 |
|
Cash
Profit Margin(%) |
8.09 |
8.14 |
5.49 |
|
Adjusted
Net Profit Margin(%) |
5.72 |
5.34 |
2.69 |
|
Return
On Capital Employed(%) |
17.57 |
15.57 |
9.82 |
|
Return
On Net Worth(%) |
12.42 |
9.79 |
4.93 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Incorporated on 22 Jan.'85 and commencing business on 22
Apr.'85, subject is promoted by N K Jain and the Haryana State Industrial Development
Corporation (HSIDC). Subject came out with a public issue in Sep.'88 to finance
its Rs 46.700 Millions project, to manufacture a wide range of leather
chemicals and auxiliaries (cap. : 1510 tpa). It issued right shares in Oct.'92
to finance the export-oriented expansion programme. Located in Jind, Haryana,
it went on stream in Apr.'88.
Leather chemicals are used for leather finishing. The company's products
include fat liquors and finishing chemicals such as binders, pigments, waxes,
feel modifiers, lacquers, etc. It has entered into technical collaborations
with two internationally reputed European companies -- A Smit and Zoon,
Holland, for fat liquors, and ICAP Industria Chimica, Italy, for finishing
chemicals. It has entered into a collaboration with Forbo Helmitin, Germany, to
manufacture speciality shoe adhesives.
The company commenced commercial production of cross-linking
acrylic binders in 1994-95, mainly for export.
The company has decided to diversify into the field of high performance
pressure sensitive adhesive for packaging industry, for this a technology
transfer agreement has already been executed by the company with M/s ICAP Sira
Chemicals and Polymers SpA, Italy. The company has also started manufacturing
Polyurethane Lacquer for Synthetic Sole in collaboration with SIVAM, Italy.
During 1999-2000, the company has started production of PSA (Pressure Sensitive
Adhesive) as per the agreement concluded with ICAP-SIRA due to this additional
product range the capacity utilisation of Acrylic plant will be optimised.
Technology transfer agreement has been concluded with M/s Vismon Barcelona,
Spain to meet with the demands of light weight and waterproof leather.
In 2000-2001 the company has undertaken a major expansion to add synthetic
tanning agent to its range of products in view of the emerging demand of the
synthetic tanning agents.The new range of Fatliquor has been widely accepted.
The company plans to produce syntans and hope to commence production by
December,2003.
Operations
During the year the company has achieved a turn over of Rs 237.300 millions
against Rs.181.300 millions for the previous year and net profit for the year
is Rs.15.000 millions against Rs.10.700 millions for the previous year.
This year the company has been able to achieve a higher capacity utilization
compared to previous years. During the year company's exports are Rs. 100.600
millions compared to the previous year's exports of Rs.60.600 millions.
Quality Control
The company has successfully established the new quality system of ISO 9001-2000. The audit and certification has been done by the leading quality agency TUV India Pvt. Ltd. The certificate No. 44 100 074098-E3 has already been issued to the company. The company is strictly adhering to the quality policy and the quality objectives outlined in the system.
Export Operations
The company has achieved a growth of 66% in its export business due to its aggressive marketing efforts in Asia and some European countries.
The company has retained the existing customer base and has expanded into newer
markets with latest products as per the new market trends.
The company will continue its push to expand the product base with new business
streams in Footwear Finishes and Adhesives.
Technology Developments
The company has continued to work or, new technologies which are likely to raise the company's ranking in the international market. The Techno Economic Feasibility study for commercializing of Polyurethane Dispersions has been finalized after completion of the research project.
The research project of 'Polymeric Fatliquors' sponsored by DSIR (Department of
Scientific and Industrial Research) is progressing well and company has
completed stage IV trials and running into stage V.
Based on market feedback the company is analyzing possibilities of using
existing products and technologies to develop various other industrial
applications in growing Textile binders and the automobile Adhesive market.
The new thrust of technology development will be application
based and specific to the customer needs.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Industry
Structure:
Indian leather and footwear production and exports have been stable even though Indian share in the global market is only 2.5%. There lies a huge growth potential of Indian leather industry in the world market which can be exploited. The industry has realized the need for quality and value addition and is targeting to meet the international standards on quality, delivery and service. In the coming few years, price and quality equation of Indian leather industry will be the main factor to attract foreign buyers.
Opportunities and Threats:
Opportunities:
For the Leather Chemicals industry, besides the domestic market a great
opportunity exists in Asian countries where the leather processing and
converting into product is on a steady-rise.
The main competing companies are in Europe and due to rise in Euro currency;
these companies will face tougher challenges to satisfy the growing price
sensitivity of Asian markets.
Threats:
The threat to the leather chemical industry continues to emerge from the
rising petroleum prices. The hardening of Indian Rupee in relation to' US
Dollar is certain to dent the profitability of exporting companies because the
customer is not willing to absorb the full impact. However, due to lower import
cost this threat can be partially mitigated.
Segment-wise or product-wise
performance
Kolkata has witnessed the highest growth and will be a growing market for quality leather chemicals. Due to increase in the production activities in the Kolkata leather complex a higher domestic sales target is achievable.
In the foreign markets, exports to China will remain stable; exports to Bangladesh may suffer due to reorganization of industries.
Product-wise, the company's Wet-End section has delivered many low cost high
performance products to the industry. The company hopes to consolidate this
position in this competitive but high volume domestic and export market.
Outlook:
The outlook of domestic leather production is not likely to change but the
world leather production is on the rise with demand for high fashion articles
steadily increasing. The new fashion trend will make tougher demands on leather
chemical industry in terms of more durable finishes. The need for safer
chemicals which are free from banned substances will dictate customer's choice.
The leather and chemical manufactures who do not possess research and
development infrastructure will find tough times ahead. The company has already
taker, as leading position in this sensitive market and enjoys a high
reputation of its products in terms of performance and safety.
Risks and concerns:
Devaluation of US dollar in relation to Indian Rupee is the main cause of concern to the company and any further rise of Rupee can put pressure on the company's profitability. To ensure price stability in domestic market, petroleum price stability will be an essential requirement to maintain market share.
Internal control Systems and their
adequacy:
The company's focus on strengthening its financial and quality controls has resulted in higher profits. The company has implemented a very tight control on receivables to ensure a healthy debtors base. A very keen eye on slow moving items and a prompt response to the demand patterns has ensured the growth in sales revenue and profits. The new ERP system to track inventories and costing will lead to faster turn around t~me, better production planning and faster deliveries.
BUSINESS:
The subject is
engaged in manufacturing of leather acrylic emulsion, leather lubricating
preparation and leather finishing preparation.
The commencing
business on 22nd April 1985, N.K. Jian and the Haryana State
Industrial Development Corporation (HSIDC) promote it. The company came out with a public issue in
September 1988 to finance its Rs. 46.700 millions project, to manufacture a
wide range of leather chemicals and auxiliaries (Cap.:1510 tpa). It issued right shares in October 1992 to
finance the export-oriented expansion programme. Located in Jind, Haryana, it went on stream in April 1988.
Leather chemicals
are used for leather finishing. The company’s products include fat liquors and
finishing chemicals such as binders, pigments, waxes, feel modifies, lacquers,
etc. It has entered into technical collaborations with two internationally
reputed European companies – A Smit and Zoon, Holland, for fat liquors, and ICAP
Industria Chemica, Italy for finishing chemicals. It has entered into a collaboration with Forbo Helmitin,
Germany, to manufacture speciality shoe adhesives.
It commenced
commercial production of cross-linking acrylic binders in 1994-95, mainly for
export.
The company decided
to diversify into the field of high performance pressure sensitive adhesive for
packaging industry, for this a technology transfer agreement has already been
executed by the company with M/s. ICAP Sira Chemicals and Polymers SpA,
Italy. The company has also started
manufacturing Polyurethane Lacquer for Synthetic Sole in Collaboration with
SIVAM, Italy. During 1999-2000, the
company has started the production of PSA (Pressure Sensitive Adhesive) as per
the agreement concluded with ICAP-SIRA due to this additional product range the
capacity utilisation of Acrylic plant will be optimised. Technology transfer agreement has been
concluded with M/s. Vismon Barcelona, Spain to meet with the demands of light
weight and waterproof leather.
In 2000-2001 the
company has undertaken a major expansion to add synthetic tanning agent to its
range of products in view of the emerging demand of the synthetic tanning
agents. The new range of the
Fatiliquor has been widely acvcepted. The company plans to produce syntans and
hope toi commence production by December 2003.
During the year the
company has achieved a turn over of Rs. 133.700 millions against Rs. 139.000
millions for the previous year and net profit of 5.600 0 million against Rs.
3.200 millions for the previous year.
The performance of the company was better in the first half of the year
compared to the second half. Though
the turnover of the company during the year has marginally decreased, the net
profit of the year has improved compared to the previous year and the earning
per share has gone up from Rs. 0.66 to Rs. 1.14
The company has
made necessary application to established connectivity with National Securities
Depository (India) Limited (NSDL) and The Central Depositories Services (India)
Limited (CDSL).
The shareholders of
the company can keep their holdings in demat form or physical form according to
their convenience after the connectivity is established. The shareholders interested to
dematerialise their shares may contact the company’s share transfer agent.
The company has
maintained its endeavour to provide quality products and services to the
Leather Industry. The company is
following the quality objectives and quality policy as per ISO 9002. Company
manufacturing leather chemicals, footwear adhesives, pressure sensitive
adhesives and textile binders.
The company has
been accredited with "ISO 9002" Certification.
Un ISO – 9002
certific los productos qumicos del cuero de la fabricacin de la compaa,
pegamentos del calzadeo, ejerce presin store los pegamen tos y las caeprnts sensibles del textil.
Un ISO – 9002 a
certifdes products chimiques de cuir de fabrication de compagine, des adhisfs
de chaussures, des adhsifs sensibles la pression et des cahiers de textile.
The company has
introduced many new products in fatliquors and finishes and stayed ahead of competitors and in line
with international fashion and trends.
The company’s plan to produce syntans are being followed as planned and
hope to commence production by December, 2003. The development of various shoe finished will further strengthen
the market position of company’s products in shoe industry.
The company has
already developed Crosslinkable – Aqous aliphatic polyurethane dispersions
(C-APUD) at their R and D lab. The
company is taking various steps for producing the product at the pilot plant
scale and this is expected to be completed by the end of the year 2002-2003
with the support of Department of Scientific and” Industrial Research (DSIR). At present PUD is not being manufactured in
India and is imported. This product
has got very good demand in India and aboard.
The company has also initiated in process research to improve the yield
of various products and minimise waste water.
The company had
embarked upon a major plan to upgrade the quality and range of products in line
with current fashion trends and future applications.
The new range of
Fatliquor (Phosphated and Waterproof) had been widely accepted. The company also achieved the distinction of
producing polyurethane dispersion, which has also been commercialised and is an
import substitute offering.
The company has
also undertaken a major expansion plan to add synthetic tanning agent to its
range of products in view of the emerging demand of synthetic tanning agents.
It imports its
requirements of raw materials from Europe against L/C terms.
The medical
instrument business is in collaboration with LEICA-USA and the drug
intermediate facility is a joint venture with DSM-Holland.
The company is in
technical collaboration with the following:
v
ICAP - SIRA
Chemicals and Polymers SPA, Italy
Manufacturers of :
· Acrylic Polymers (Water and Solvent Based)
· Polyurethane Resins (Water and Solvent Based)
· Pigment Dispersions
·
Formulated Auxiliaries
v
FORBO-HELMITIN
GmbH, Germany.
Manufacturers of Adhesives and other chemicals
Company is a joint
venture company with ICAP –SIRA chemicals and polymers S.P. A. of Italy, is a
name, which has become synonymous with the finest chemicals for leather
industry-internationally.
Company’s strength
in 'Polymerization ‘ and 'Particle Size Control’ technology from ICAP –Italy,
is the key behind the coast effective production and finest products. As a further backup of technology company
has technical colaboration with Europian
Industry leaders like Forbo Helmitin GmbH, Germany and Vismon
International s.l, Spain.
OTHER INFORMATION:
Contingent
liabilities
a) Letter of
credits issued by the bank on behalf of the Company: Rs. 0.467 millions (previous
year Rs. 0.540 millions) net of advances.
b) Claims against the expenses not acknowledged as Debt Rs. 0.085
millions (Previous Year - Nil.)
FIXED ASSETS:-
- Land
- Buildings
- Plant and
Machinery
- Furniture,
Fixtures and Equipments
- Vehicles
AS
PER WEBSITE:
Subject
is a Joint Venture company with ICAP-SIRA Chemicals and Polymers S. p.A of
Italy, is a name, which has become synonymous with the finest Chemicals for
Leather industry - Internationally.
Their
strength in 'Polymerization' and 'Particle Size Control' technology from
ICAP-Italy, is the key behind the coast effective production and finest quality
products. As a further backup of technology HLC has technical collaboration
with European industry leaders like Forbo Helmitin GmbH, Germany and Vismon
International sl., Spain.
'State
of the art technology' and unstinted care at every stage of production ensures
top of the line products from HLC. Their commitment to quality is further
backed by ISO 9002 accreditation at their plant where they adhere to the
quality system specified by ISO 9000 standards. The strategic stock points all
over the country and well-trained technical staff is networked to maintain
timely delivery and services to the customer.
The company is controlled
by N. K. JAIN and FAMILY, is the most reputed and respected company in India in
the field of leather and shoe chemical manufacturing. A wide range of products,
Syntans, Fatliquors, Finishing Chemicals, Shoe Finishes and Shoe Adhesives has
enabled them a very wide customer base including leather tanneries and footwear
companies within India and many European and Far Eastern countries. With a
volume of 4000 tonnes / annum of various products, HLC has today emerged as a
leader in Speciality Chemicals having niche market requiring high performance
products for leather and shoe industry. The various technical collaborations as
with ICAP SIRA - ITALY, HELMITIN - GERMANY and VISMON - SPAIN have enabled the
company acquire a state-of-the-art technology as per international trends and a
range of products with highest safety standards in respect of the banned
substances in leather chemicals. An ISO-9002 Quality System, sophisticated
Research and Development infrastructure, highly motivated team of professionals
and world wide network of distributors and Application Technologists,
demonstrates their strength and market dominance.
State of the art
Research:
- Research labs managed
by highly qualified experts
- Sophisticated laser
particle analyzers, chromatography, spectrophotometery, and other research and
test facilities.
Reliable
Infrastructure
Chemical handling and storage platforms
- Honeywell® automation
and control hardware, PLANT VISTA software
Unsurpassed
Quality
The ISO 9001-2000 Quality System ensures quality consistency from batch
to batch and a quality audit trail for faster customer response.
Responsibility and Safety:
Waste water minimization and recycling
- Higher fuel efficiency
- Solid Waste management
- Compliance with worker
safety
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.40.02 |
|
UK Pound |
1 |
Rs.79.44 |
|
Euro |
1 |
Rs.62.94 |
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 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|