MIRA
INFORM REPORT
|
Report Date : |
28.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
INSILCO LIMITED |
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Registered Office : |
A-5UPSIDC Industrial Estate, Bhartigram, Gajraula- 244223, Uttar
Pradesh |
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Country : |
INDIA |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
19.10.1998 |
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Com. Reg. No.: |
010141 |
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CIN No.: [Company
Identification No.] |
L34102UP1988PLCO10141 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
LKNI05069B |
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PAN No.: [Permanent
Account No.] |
AAACI1203N |
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Legal Form : |
Public Limited Liability Company. Company’s shares are Listed on Stock
Exchange. |
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Line of Business : |
Manufacturer of Precipitated Silica |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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Maximum Credit Limit : |
USD 3500000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old established company but its profitability is under
severe pressure. The company continues to incur losses. Trade relations are
fair. Payments are reported as slow but correct. The company can be considered for business dealings at usual trade
terms & conditions, with slight caution, initially. |
LOCATIONS
|
Registered Office/ Factory : |
A-5UPSIDC Industrial Estate, Bhartigram, Gajraula- 244223, Uttar
Pradesh, India |
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Tel. No.: |
91-5924- 252341 / 042 |
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Fax No.: |
91-5924- 252348 |
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Website : |
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Head Office / Factory : |
Plot No. A-21/2 MIDC, Patalganga Industrial Area Patalganga -410220, Raigad,
Maharashtra, India |
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Tel. No.: |
91-2192- 253676 |
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Fax No.: |
91-2192- 253634 |
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Corporate Office : |
Thapar House,3rd Floor,Central Wing, 124,Janpath, New
Delhi-110001,India |
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Tel. No.: |
91-11-23742277 |
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Fax No.: |
91-11-23360033 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Vijay Krishna Lamba. |
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Designation : |
Chairman |
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Date of Birth/Age : |
05.03.1933 |
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Qualification : |
B.A. (Hons), Advanced Management Course |
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Date of Appointment : |
07.04.1999 |
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Name : |
Mr. Matthias Hau |
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Designation : |
Managing Director |
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Date of Birth/Age : |
20.02.1963 |
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Qualification : |
Apprenticeship in Business Administration |
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Date of Appointment : |
01.05.2005 |
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Name : |
Mr. Florian Bertram Kirschner |
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Designation : |
Whole Time Director |
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Name : |
Mr. Dara Phirozeshaw Mehta. |
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Designation : |
Director |
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Name : |
Mr. Gerard Jacques Raymond Berote |
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Designation : |
Director |
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Date of Birth/Age : |
19.06.1955 |
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Qualification : |
Graduate in Chemical Engineering |
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Date of Appointment : |
26.10.2006 |
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Name : |
Mr. Hans Wolfgang Wilhelm Kirches |
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Designation : |
Director |
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Date of Birth/Age : |
14.04.1953 |
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Qualification : |
MBA |
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Date of Appointment : |
25.01.2007 |
KEY EXECUTIVES
|
Name : |
Mr. Brijesh Arora |
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Designation : |
General Manager, Finance and Accounts and Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoter-Degussa GMBH |
45853315 |
73.11 |
|
Residents (Individual) |
14969176 |
23.87 |
|
Financial Institutions and Banks |
1160 |
0.00 |
|
Foreign Institutional Investors |
23600 |
0.04 |
|
Non-Resident Individuals/ OCBs |
222692 |
0.36 |
|
Corporate Bodies |
1630797 |
2.60 |
|
Mutual Funds |
14260 |
0.02 |
|
Total |
62715000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Precipitated Silica |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Precipitated Silica |
MT |
N.A |
24200 |
20617 |
|
Silica / intermediate Waste |
MT |
N.A |
N.A |
199 |
GENERAL
INFORMATION
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Bankers : |
v ABN Amro Bank v BNP Paribas |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
T.R. Chadha and company Chartered Accountant |
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Address : |
B-30, Connaught Place, New Delhi-110001 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
65715000 |
Equity Shares |
Rs. 10/-each |
Rs.657.150 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
62715000 |
Equity Shares |
Rs. 10/-each |
Rs.627.150
Millions |
Notes
Of the above, 45853315 (Previous period
45853315) equity shares are held by Degussa GMBH (Formerly Degussa AG) the
Holding Company.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 [15 months] |
31.12.2004 [12 months] |
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SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
627.150 |
627.150 |
627.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
259.056 |
259.962 |
261.100 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
886.206 |
887.112 |
888.300 |
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LOAN FUNDS |
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1] Secured Loans |
180.000 |
180.000 |
180.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
180.000 |
180.000 |
180.000 |
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DEFERRED TAX LIABILITIES |
62.858 |
68.157 |
0.000 |
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TOTAL |
1129.064 |
1135.269 |
1068.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
443.403 |
480.044 |
520.300 |
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Capital work-in-progress |
1.873 |
9.242 |
1.900 |
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|
|
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INVESTMENT |
417.410 |
472.010 |
337.500 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
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|
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Inventories |
120.852
|
68.712 |
53.000 |
|
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Sundry Debtors |
139.057
|
116.755 |
150.200 |
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Cash & Bank Balances |
36.191
|
17.210 |
130.500 |
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Other Current Assets |
18.150
|
15.598 |
0.000 |
|
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Loans & Advances |
60.312
|
48.808 |
50.000 |
|
Total
Current Assets |
374.562
|
267.083 |
383.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities |
97.923
|
84.191 |
166.900 |
|
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Provisions |
10.261
|
8.919 |
8.200 |
|
Total
Current Liabilities |
108.184
|
93.11 |
175.100 |
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Net Current Assets |
266.378
|
173.973 |
208.600 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
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TOTAL |
1129.064 |
1135.269 |
1068.300 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 [15 months] |
31.12.2004 [12 months] |
|
|
Sales Turnover |
690.173 |
773.096 |
712.300 |
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Other Income |
36.559 |
44.892 |
58.200 |
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Total Income |
726.732 |
817.988 |
770.500 |
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Profit/(Loss) Before Tax |
8.722 |
[15.611] |
93.400 |
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|
Provision for Taxation |
9.628 |
[14.444] |
26.900 |
|
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Profit/(Loss) After Tax |
[0.906] |
[1.167] |
66.500 |
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Earnings in Foreign Currency : |
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Export Earnings |
3.469 |
3.351 |
NA |
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Imports : |
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|
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Stores & Spares and Packing Materials |
8.632 |
4.647 |
NA |
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Capital Goods |
0.094 |
17.246 |
NA |
|
Total Imports |
8.726 |
21.893 |
NA |
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Expenditures : |
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|
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Raw Material Consumed |
202.789 |
204.359 |
139.700 |
|
|
Excise duties on stocks, samples etc. |
3.845 |
0.660 |
70.200 |
|
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Personal expenses |
66.313 |
77.923 |
0.000 |
|
|
Depreciation & Amortization |
62.075 |
73.820 |
28.700 |
|
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Finance expenses. |
1.562 |
1.905 |
1.400 |
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Operating and other expenses |
427.764 |
488.884 |
417.400 |
|
|
Increase in inventories |
[46.339] |
[13.952] |
19.700 |
|
Total Expenditure |
718.009 |
833.599 |
677.100 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
144.000 |
186.700 |
174.500 |
|
Other Income |
31.400 |
10.800 |
40.000 |
|
Total Income |
175.400 |
197.500 |
214.500 |
|
Total Expenditures |
142.200 |
189.600 |
190.700 |
|
Operating Profit |
33.200 |
7.900 |
23.800 |
|
Interest |
[0.100] |
[0.200] |
0.000 |
|
Gross Profit |
33.300 |
8.100 |
23.800 |
|
Depreciation |
15.200 |
12.500 |
11.200 |
|
Tax |
4.200 |
[3.600] |
0.200 |
|
Reported PAT |
14.600 |
2.500 |
13.200 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 [15 months] |
31.12.2004 [12 months] |
|
Debt-Equity Ratio |
0.20 |
0.20 |
0.21 |
|
Long Term Debt-Equity Ratio |
0.20 |
0.20 |
0.21 |
|
Current Ratio |
1.90 |
1.91 |
2.60 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.66 |
0.60 |
0.61 |
|
Inventory |
8.04 |
11.47 |
11.50 |
|
Debtors |
5.95 |
5.23 |
4.79 |
|
Interest Cover Ratio |
[5.81] |
[14.63] |
67.71 |
|
Operating Profit Margin(%) |
6.93 |
5.27 |
17.34 |
|
Profit Before Interest And Tax Margin(%) |
[1.22] |
[3.19] |
13.31 |
|
Cash Profit Margin(%) |
5.84 |
7.31 |
13.37 |
|
Adjusted Net Profit Margin(%) |
[2.31] |
[1.15] |
9.34 |
|
Return On Capital Employed(%) |
[0.87] |
[2.08] |
9.23 |
|
Return On Net Worth(%) |
[1.98] |
[0.90] |
7.78 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Jointly promoted by Vam Organic Chemicals and De Gussa,
Germany, Insilco produces spray dried silica. The company's product is a versatile
raw material used in a wide range of industries. It is used as a reinforcing
agent in rubber products like tyres, rice rollers, footwear, conveyor belts,
etc. It is used as a carrier for active ingredients in pesticides and also as a
grinding aid. In toothpastes, it is used as a thickening agent. In poultry feed
additives, it is used to convert liquid into powder. In spices, food pre-mixes,
etc, it is used as a free-flow and anti-caking agent to increase the shelf
life. The company came out with a public issue to part-finance a project in
Jan.'92. The company has been accredited by the BVQI with the prestigious ISO
9002
During the year 1999-2000, the Company acquired the assets
of the Silica Manufacturing unit of MTZ (India) Limited at a price of US$
5500000. The plant has a capacity of 5500 TPA and has been approved for
expansion to 9000 TPA which is expected to be completed by 2001. The Company
issued partly convertible debentures of Rs 250/- each ammounting to 300 Mio on
rights basis to existing shareholders in January, 2000 to part finance the
acquisition of the Patalganga Unit.
Insilco is looking at the possibility of 10,000 tpa of additional capacity to
meet future demand growth in India. The company plans to focus on non-rubber
applications, especially in areas like pharmaceuticals and food products. It is
also exploring the possibilities of introducing a new grade of silica, Ultrasil
7000 GR.
During the year 2000-2001, in the Gajraula Plant of the Company, the existing
programmable Logic Control System(PLC) was replaced by the next Generation
Process Controls ie. Distributed Control Systems(DCS).
RESULTS
OF OPERATIONS:
The precipitated silica production during the year amounted
to 20,617 MTs as against 23,489 MTs (15 Months) during the previous year. The
precipitated silica sales during the year amounted to 19,725 MTs as against
23,508 MTs (15 Months) during the previous year. The Company achieved a sales
turnover of Rs. 762 Million during the year as compared to Rs. 872 Million
(15 Months)
during the previous year.
The
Company achieved profit before interest and depreciation for the year at Rs 70
Million as against Rs. 66 Million (15 Months) in the previous year. The Company
continues to strive for growth in volume, higher production, energy
optimization, better working capital management, better asset utilization and
manpower rationalization.
FUTURE OUTLOOK:
The
Company is applying its core strengths of technical know-how with the support
of the parent company, Degussa GMBH, Germany to maintain its market position.
The Technical Support Services has been strengthened.
The
manpower has been trained overseas and close interaction with customers is
being maintained to provide them silica application support.
The
Company continues to explore alternative fuels, replacement of high energy
consuming old equipments, installation of energy saving devices, optimization
of running time of equipments and process modification.
Industry Structure
and Developments:
Precipitated silica has rubber and non-rubber applications. The rubber applications include - Tyres, Footwear, Rice Roller, Rubber Auto Parts and miscellaneous rubber goods industries. The non-rubber applications include - Plant Protection, Feed, Food, Toothpaste, Detergents, Battery Separator Industries, Paints, Silicon rubber, FRP, Defoamer, Pharmaceuticals, Distilleries etc.'
Environment &
Pollution Control Measures:
They committed to conserve and protect the environment through continuous improvement and participation of all employees. Both Gajraula and Patalganga Plants have been certified under the Environment Management standard ISO-140001 and Quality Management Standard ISO 9001-2000. The Environment, Safety, Health and Quality (ESHQ) Audit by Degussa's ESHQ department for both plants confirmed that systems installed at both plant sides to a large extent are not only as per requirement but even better.
AS PER WEBSITE
About Insilco
Subject, a group company of Degussa AG, Germany, is the leading producer of precipitated silica in South Asia & largest manufacturer in India. It was formed as a joint venture company in 1988. In April 1999, Degussa took-over the majority equity holding, thereby raising their holdings to 63%, rest being widely distributed among public. After conversion of PCD's into shares, the holding of Degussa is 68.25% and along with RAG, the total promoters holding is 73%
Insilco Limited has two state-of-the-art plants in India, located at Gajraula, U.P. (110 km. north east of Delhi) and Patalganga, Maharashtra (75 km. south east of Mumbai).
Gajraula plant started commercial production on 1st January 1993 and Insilco acquired Patalganga plant in September 1999. Insilco produces different grades of silica, catering to the requirement of customers in rubber and non-rubber segments. Its main customers comprise of, companies manufacturing tyres, rice hulling rollers, footwear, mechanical rubber goods in rubber segment, while plant protection, feed, food, detergents, battery separators and toothpaste customers fall under the non-rubber segment.
Insilco is the only silica company in India having an in-house production of sodium silicate, a critical intermediate in the process.
Both Gajraula & Patalganga plants are ISO-9001:2000 and ISO 14001:1996 certified.
Insilco is fully equipped to provide technical services to customers, in all the segments, with a backup support available from Degussa AG. Insilco has well equipped product testing labs at both plants. Besides this special application labs are there at Patalganga in the field of rubber application and agro application.
The Sales and Marketing of Insilco’s products are handled through Degussa India Private Limited, having headquarters in Mumbai and regional offices in Delhi, Mumbai, Pune, Chennai and Kolkata.
Export
House status for continuous three times (9 years) by the Ministry of Commerce.
Insilco is a net foreign exchange earn
Insilco is exporting a substantial quantity
of its production to various parts of the world.
Insilco has been granted an Export er
with very feeble imports.
Insilco Patalganga plant is an ideal
location for servicing markets in the Asia-pacific region.
Overseas agents are located in Indonesia, Philippines, Sri Lanka, Bangladesh
and Nepal. Sales support is available through offices of Degussa AG in
Singapore, Japan, Taiwan and China worldwide.
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 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.40.22 |
|
UK Pound |
1 |
Rs.79.94 |
|
Euro |
1 |
Rs.62.83 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
36 |
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 |
|