MIRA
INFORM REPORT
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Report Date : |
21.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
INDO NIPPON CHEMICAL COMPANY LIMITED |
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Registered Office : |
Maker Bhavan No.2 18, New Marine Lines Mumbai 400 020,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
30.09.2004 |
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Date of Incorporation : |
21.05.1960 |
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Com. Reg. No.: |
11-11692 |
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CIN No.: [Company
Identification No.] |
L24110MH1960PLC011692 |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer of Plasticizers |
RATING &
COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Sick Unit |
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Payment Behaviour : |
Slow |
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Litigation : |
Exists |
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Comments : |
Subject is a Sick Unit and has been referred to BIFR. The company has
not filed any financials after 30.09.2004 with the Government Registry. We
spoke to Mr. Nilesh Karwat and Mr. Ashish Bhuva, but they failed to update
with latest financials. Payments are reported as slow and delayed. The company can be considered for any business dealings on fully safe
and secured trade terms and conditions.
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LOCATIONS
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Registered Office : |
Maker Bhavan No.2 18, New Marine Lines Mumbai - 400 020, Maharashtra,
India |
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Tel. No.: |
91-22-2205 1723 / 2205 1897 / 2205 1612 / 2205 1821 /
22051723 |
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Fax No.: |
91-22-2205 3488 |
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E-Mail : |
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Website : |
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Factory : |
Plot No. 2, Nandesari Industrial Area, P O Nandesari, District
Vadodara – 391340, Gujarat, India |
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Tel. No.: |
91-265-3090934 |
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Terminal : |
Plot No. 2, K K Road, Old Kandla, Kutch – 370201 |
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Tel. No.: |
91-2836-270795 |
DIRECTORS
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Name : |
Mr. Harish Indulal Bhuva |
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Designation : |
Managing Director |
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Address : |
Bhuva Cottage Plot No. 143, Wadala Road No. 9A, Mumbai – 400031,
Maharashtra, India |
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Date of Birth/Age : |
15.08.1947 |
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Date of Appointment : |
01.01.1977 |
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Other Directorship : |
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Name : |
Mr. Prafull Indulal Bhuva |
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Designation : |
Managing Director |
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Address : |
Aidee House |
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Date of Birth/Age : |
08.09.1945 |
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Date of Appointment : |
29.09.1992 |
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Other Directorship : |
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Name : |
Mr. Mahesh Vadilal Gandhi |
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Designation : |
Director |
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Address : |
7/8 Morar Baug, 4th Floor, R. B. Mehta Marg, Ghatkopar
[East], Mumbai – 400077, Maharashtra, India |
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Date of Birth/Age : |
10.02.1944 |
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Date of Appointment : |
29.06.1966 |
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Other Directorship : |
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Name : |
Mr. Atul H. Patel |
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Designation : |
Director |
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Address : |
Akashwan Housing Complex, Gotri Sevasi Road, Sevasi, Vadodara –
391101, Gujarat, India |
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Date of Birth/Age : |
20.12.1950 |
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Date of Appointment : |
26.091998 |
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Name : |
Ms. Snehal N. Muzoomdar |
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Designation : |
Director |
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Address : |
351, Tardeo Airconditioned Market, Mumbai – 400034 |
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Date of Birth/Age : |
26.05.1956 |
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Date of Appointment : |
26.09.1998 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
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Bhuva Holdings Limited |
88440 |
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Kumud Narendra Bhuva |
2224 |
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Narendra Indulal Bhuva |
3140 |
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Narendra Indulal Bhuva Chandrakant Indulal Bhuva Harish Indulal Bhuva |
21224 |
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Narendra Indulal Bhuva Chandrakant Indulal Bhuva Prafull Indulal Bhuva Harish Indulal Bhuva |
608 |
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Harish Indulal Bhuva |
33388 |
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Vandana Harish Bhuva |
2760 |
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Ashish Harish Bhuva |
978 |
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Chandrakant Indulal Bhuva |
3008 |
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Sheela Chandrakant Bhuva |
1004 |
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Rakesh Chandrakant Bhuva |
2872 |
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Anirudh Chandrakant Bhuva |
688 |
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Kunal Chandrakant Bhuva |
166 |
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Prafull Indulal Bhuva |
33316 |
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Panna Prafull Bhuva |
2832 |
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Bhavin Prafull Bhuva |
978 |
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Mehool Narendra Bhuva |
2374 |
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Total |
200000 |
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Equity Share
Breakup |
Percentage of
Holding |
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Category |
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Bodies corporate |
44.22 |
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Directors or relatives of directors |
55.78 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Plasticizers |
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Products : |
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Export to : |
USA, France, Bangladesh, Pakistan, U.A.E., Sri Lanka,
Myanmar, Singapore, Nepal, Australia, etc., |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
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Plasticizers |
MT |
11600 |
35000 |
GENERAL
INFORMATION
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Bankers : |
Industrial Development Bank of India Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
Mukund and Rohit Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs. 100/- each |
Rs. 20.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000 |
Equity Shares |
Rs. 100/- each |
Rs. 20.000 Millions |
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Of the above 180000 shared are allotted as
Bonus Shares by way of capitalization of General Reserve |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
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30.09.2004 |
30.09.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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20.000 |
20.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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[234.301] |
[205.342] |
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NETWORTH |
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[214.301] |
[185.342] |
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LOAN FUNDS |
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1] Secured Loans |
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213.956 |
186.883 |
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2] Unsecured Loans |
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5.810 |
4.840 |
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3] Hire Purchase Liabilities |
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17.543 |
16.734 |
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TOTAL BORROWING |
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237.309 |
208.457 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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23.008 |
23.115 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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54.494 |
54.046 |
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Capital work-in-progress |
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0.000 |
6.156 |
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INVESTMENT |
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4.252 |
4.327 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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9.102 |
10.038 |
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Sundry Debtors |
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8.154 |
8.632 |
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Cash & Bank Balances |
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11.238 |
9.848 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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35.198 |
31.972 |
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Total
Current Assets |
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63.692 |
60.490 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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96.142 |
99.094 |
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Provisions |
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3.288 |
2.810 |
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Total
Current Liabilities |
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99.430 |
101.904 |
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Net Current Assets |
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[35.738] |
[41.414] |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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23.008 |
23.115 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
30.09.2004 |
30.09.2003 |
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Sales Turnover |
|
186.052 |
133.905 |
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Other Income |
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33.209 |
36.468 |
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Total Income |
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219.261 |
170.373 |
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Profit/(Loss) Before Tax |
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[28.168] |
[68.240] |
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Provision for Taxation |
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-- |
-- |
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Profit/(Loss) After Tax |
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[28.168] |
[68.240] |
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Earnings in Foreign Currency : |
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Total Earnings |
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103.715 |
51.003 |
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Expenditures : |
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Material Cost |
|
142.728 |
99.501 |
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Stores and Spares |
|
1.648 |
2.026 |
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Power, Fuels and Water |
|
11.109 |
10.358 |
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Cartage Inward and Octroi |
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2.504 |
1.535 |
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Employment Emoluments |
|
8.078 |
9.350 |
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Packing, Forwarding and Octroi |
|
14.361 |
9.763 |
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Laboratory and Research Expenses |
|
0.143 |
0.134 |
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Repairs and Maintenance |
|
2.265 |
2.017 |
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Interest |
|
28.819 |
37.761 |
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Depreciation & Amortization |
|
7.657 |
7.857 |
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Increase / [Decrease] in Stocks |
|
2.002 |
[1.850] |
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Other Expenditure |
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26.115 |
60.161 |
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Total Expenditure |
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247.429 |
238.613 |
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KEY RATIOS
|
PARTICULARS |
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|
30.09.2004 |
30.09.2003 |
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PAT / Total Income |
(%) |
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[12.85] |
[40.05] |
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Net Profit Margin (PBT/Sales) |
(%) |
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[15.14] |
[50.96] |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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[23.83] |
[59.58] |
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Return on Investment (ROI) (PBT/Networth) |
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[0.13] |
[0.37] |
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Debt Equity Ratio (Total Liability/Networth) |
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|
[1.57] |
[1.67] |
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Current Ratio (Current Asset/Current Liability) |
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|
0.64 |
0.59 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS AND SALES :
The Sales during the year was 3369 tonnes for an aggregate of Rs. 195.900 millions as compared to 2657 tonnes for an aggregate of Rs. 143.700 Millions of the previous year.
EXPORTS :
During the year company has exported goods worth Rs. 103.700 Millions against Rs. 51 Millions in th previous year.
TERMINATING CHARGES
:
The company has earned terminating charges of Rs. 14.200 Millions as compared to Rs. 14.000 Millions of the previous year.
GENERAL :
During the year the turnover of the company has increased to Rs. 195.900 Millions from Rs. 143.700 Millions
BIRF REGISTRATION :
The Company’s reference with BIRF [Board for Industrial and Financial Reconstruction] registered under No. 2/2002 on 4th January 2002 came up for last hearing on 2nd April 2004. against the order of BIRF Mehool N Bhuva and Associates had moved to AAIFR [Appellate Authority for Industrial and Finance Reconstruction] for a stay of operation of impugned order, which was granted on 15th June 2004
CONTINGENT
LIABILITIES NOT PROVIDED FOR
|
Particular |
30.09.2004 [Rs in
Millions ] |
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In respect of Interest on custom duty temporarily withdrawn by the company, pending final disposal of write petitions by the Mumbai High Court |
18.071 |
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Dispute Income Tax demands under appeals |
141.807 |
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In respect of the case filed by the Gujarat Pollution Control Board, the Company has complied with norms specified by The Board and an amount of Rs. 1.153 Millions has been deposited with The Registrar, Gujarat High Court. The Liability in this regard, if any , is nor presently ascertainable and the company expects that full refund of the balance about of the said deposit will be received in due course. |
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Income tax assessments are completed upto and including assessment year 2001-2002. No provision for Income tax has been made for the year in the absence of taxable income. Provision for taxation in respect of pending assessments including current assessment year for which no provision has been made, based on claims for dedication and legal advice, are subject to completion of assessments.
The Company is a
partner in a Partnership Firm viz Shreeji Plasticizers, the particulars whereof
are as follow :
|
Name of the Partner
|
Capital in millions |
Share [%] |
|
Indo Nippon Chemical Company Limited |
1.750 |
70 |
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Bhuva Holdings Limited |
0.500 |
20 |
|
Buckingam Bac Services Private Limited |
0.250 |
10 |
|
Total |
2.500 |
100 |
FIXED ASSETS
- Land
- Road and Site Development
- Building
- Ownership Premises
- Plant and Machinery
- Lab. and Research Equipment
- Furniture and Fixture
- Electric Installations
- Vehicles
BANKERS CHARGES
REPORT AS PER REGISTRY
|
Name of the company |
INDO NIPPON CHEMICAL
COMPANY LIMITED |
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Presented By |
Industrial Development Bank of India, IDBI
Tower, Cuffe Parade, Mumbai – 400004 and Stressed Assets Stabilisation Fund |
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1) Date and description of instrument creating the change |
08.12.1993 Deed
of Hypothecation executed by the Company in favour of IDBI |
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2) Amount secured by the charge/amount owing on the securities of charge |
The Line of
Credit of Rs. 15 Millions lent and advanced by IDBI to the Company, together
with interest, additional interest, liquidated damages, premia on prepayment
or on redemption, costs, charges, expenses and all other monies payable by
the company to IDBI in terms of the assets credit agreement dated 08.12.1993
between the company on the One Part and the IDBI of the other part. |
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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 |
2 Nos NEPC 250 KV
Wind Terbine Generators together with all spares, tools and accessories
whether installed or not and whether now lying loose or in about or shall
hereafter from time to time during the continuance of the security be brought
into or upon or be stored or be in or about the company’s factories, premises
and godowns or wherever else the same may be or be held by any party to the
order or disposition or the company or in the course of transit or on high
seas or on order, or delivery howsoever and wheresoever in the possession of
the company and either by way of substitution or addition. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The charge
operates as exclusive charge in favour of IDBI as security inter alia for the
due repayment by the company to IDBI for its line of credit of Rs. 15
millions together with interest, additional interest, liquidated damages,
commitment charge, premia on prepayment or on redemption, costs, charges,
expenses and all other monies payable by the company to IDBI in terms of the
said asset credit agreement. The company has
undertaken to keep the goods hypothecated in marketable and good condition at
its own costs and to insure the same in the joint names of the company and
IDBI. All the goods
hypothecated and all realizations and insurance proceeds thereof and all
documents in respect of the said security are to be kept distinguishable and
held as the exclusive property of IDBI. |
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5) Name and Address and description of the person entitled to the charge. |
Stressed Assets
Stablisation Fund IDBI Tower, ETC
Complex, Cuffe Parade,
Mumbai – 400005 |
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6) Date and brief description of instrument modifying the charge |
A transfer deed
dated 30.09.2004 entered into between IDBI and Stressed Assets Stablisation Fund |
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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. |
By the said
Transfer Deed dated 30.09.2004 the charge and mortgage created in favour of
IDBI has been transferred to the Stressed Assets Stablisation Fund and
Stressed Assets Stablisation Fund has become the holders of charge and
mortgage referred to in column 1 instead of
IDBI. |
AS PER WEBSITE
Subject has been
an enterprise. It started its plant in 1961 to manufacture Plasticizers with a
capacity of only 1000 MTS per year, when plasticizers were imported at a low
cost.
Considering demand at that time in spite of lower cost of
imported products, Indo-Nippon ventured for the project. Within a short period
of time it not only established but also expanded its capacity to 3500 MT/year
and added facilities for manufacturing DMP and DEP.
Over the period, PVC industry for flexible products expanded
and to meet the growing demand Indo-Nippon put up a plant with the latest
technology for a continuous process for additional capacity of 5000 MT/year.
The present capacity is 35,000 MT per year.
Subject also remained a leader by introducing a variety of speciality plasticizers
which included products like DOA, TOTM, DnHP, Linplast 1012P, medical grade
DOP, etc. These products were aimed to meet speciality applications of the PVC
industry and were contributory factors to achieve low and high temperature
performance, faster gelation, high purity, etc., in PVC products.
Indo-Nippon manufactures DEP which has applications other
than PVC. It is used as a plasticizer for Cellulose Acetate plastics, carrier
for essences and perfumes in the manufacture of incense sticks. Indo-Nippon
also supplies high purity DEP (min 99.7%) for very special applications.
Subject has been a pioneer in the manufacture of plasticizers in India and has
remained a leader in this field for its range of products, capacity, consistent
quality and technical services since 1961 and contributed in the growth of
various industries.
Subject is a
closely held Public Limited Company incorporated in 1961 at Bombay having
financial collaboration with one of the largest trading house in Japan namely; M/s.
Nichimen Corporation.
Subject is
manufacturing a wide range of plasticizers which find applications in various
industries such as PVC, synthetic resins, natural and synthetic rubber,
perfumery, agarbatti and other industries.
In PVC industry, products manufactured using plasticizers
include footwear, leathercloth, PVC cables, electrical cables and wires, vinyl
films, flexible pipes, toys, erasers etc.
Subject is a pioneer and leading manufacture of plasticizers
in the country having installed capacity of 35000 TPA after expanding from time
to time from initial capacity of 1000 TPA.
Subject is
also regularly exporting its products to the entire satisfaction of its
customers around the world to various countries like USA, France, Bangladesh,
Pakistan, U.A.E., Sri Lanka, Myanmar, Singapore, Nepal, Australia, etc.,
In 1987, subject diversified
its activities by setting up a Liquid Chemical Storage Terminal at
Kandla, which presently has 10 M. S. Tanks with a total capacity of 17,200 KL.
Power stations based on thermal and hydraulic sources are
highly capital intensive in India. Under these conditions, Indo-Nippon Chemical
Co., Ltd. ventured for power generation through windmills located in Gujarat
State of India. Presently subject
has seven windmills generating power.
Subject also
has two associates units i.e. Shreeji Plasticizers and Balaji Polymers (Diu)
located at the Union Territory at Diu.
Research and Development
R & D work involves improving quality, material balance
and energy saving. It contributes to the technical services to the customers
for optimum and efficient utilization of products manufactured.
R & D has helped to resource new raw materials for
manufacturing plasticizers.
Through R & D, waster water treatment process including
proper bio-mass has been developed to meet norms of treated water and its
recycling.
Indo-Nippon's R & D Section has glass equipment for
reactions and laboratory use, glass equipments for pilot reactions and SS
equipments for process parameter evaluation.
Indo-Nippon has PVC products testing
equipments such as mixer, mixing roll, hydraulic process, low temperature, etc
for plasticizer evaluation for its use in PVC.
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.40.15 |
|
UK Pound |
1 |
Rs.78.26 |
|
Euro |
1 |
Rs.59.06 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
- |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
- |
|
--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 |
NO |
|
TOTAL |
|
7 |
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 |
|