MIRA
INFORM REPORT
|
Report Date : |
23.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HINDUSTAN ORGANIC CHEMICALS LIMITED |
|
|
|
|
Registered Office : |
Post Rasayani, District Raigad – 410 207, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
12.12.1960 |
|
|
|
|
Com. Reg. No.: |
11895 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L99999MH1960GOI011895 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHNH00307G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACH2663P |
|
|
|
|
Legal Form : |
A public limited
liability company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturer of Chemicals. |
RATING &
COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Sick Unit |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Comments : |
Subject is a sick unit and has been referred to BIFR. Company’s
profitability is under severe pressure. It has huge accumulated losses and its
networth has been eroded. Payments are reported as slow and delayed. The company can be considered for any business dealings on safe and
secured trade terms and conditions, only. |
LOCATIONS
|
Registered Office / Rasayani Unit : |
Post Rasayani, District Raigad – 410 207, Maharashtra , India |
|
Tel. No.: |
91- 2192- 250041-46 |
|
Fax No.: |
91 -2192- 250050 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Harchandrai House, 81, Maharshi Karve Marg, Marine
Lines, Mumbai 400 002, Maharashtra, India |
|
Tel. No.: |
91-22-22014269-71 |
|
Fax No.: |
91-22-22059533 |
|
|
|
|
Factory (Kochi Unit): |
Ambalamugal 682 302, Dist. Ernakulam, (Kerala), India |
|
Tel. No.: |
91-484- 720911-14 / 720844-45 |
|
E-Mail : |
91-484-720893. |
DIRECTORS
|
Name : |
Mr. A S Didolkar |
|
Designation : |
Chairman and Managing director |
|
|
|
|
Name : |
Mr. U Sarkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R N Madangeri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S V Ganu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J S Maini |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K C Misra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sukumar Devotta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B D Kulkarni |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mathew C Kunnumkal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. S S Kulkarni |
|
Designation : |
Company Secretary |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Chemicals. |
GENERAL INFORMATION
|
Bankers : |
NA |
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Gala and Gala Chartered Accountants |
|
|
|
|
Associates/Subsidiaries : |
HINDUSTAN FLUOROCARBONS LIMITED (A subsidary of HOC )
1402, Babukhan Estate,Bashir Baugh, Hyderabad 500 001) Fax : 91-40-3296455 Regional & Marketing Offices Baroda : 3/1, Kirti Tower, Tilak Road, Baroda - 390 001. Telephone : 91-265-438122
Delhi : Core-6, First Floor,
SCOPE Complex, Lodhi Road, New Delhi 110 003. Fax : 91-11-4360698
Hyderabad: 1402,
Babukhan Estate, Bashir Baugh, Hyderabad 500 001.
Chennai
:
D-1, Nelson Chambers, 115, Nelson Manickam Road, Aminji Karai, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
350000000 |
Equity shares |
Rs. 10/- each |
Rs.3500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
67268900 |
Equity shares |
Rs. 10/- each |
Rs.672.689
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
672.700 |
672.700 |
672.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
[1740.900] |
[1906.500] |
[1336.600] |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
[1068.200] |
[1233.800] |
[663.900] |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1265.100 |
2312.800 |
2050.900 |
|
|
2] Unsecured Loans |
896.900 |
2055.800 |
2173.300 |
|
|
TOTAL BORROWING |
2162.000 |
4368.600 |
4224.200 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1093.800 |
3134.800 |
3560.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2384.100 |
2576.500 |
2824.200 |
|
|
Capital work-in-progress |
314.700 |
329.000 |
344.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
5.000 |
5.000 |
5.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
626.600
|
763.100 |
695.900 |
|
|
Sundry Debtors |
542.600
|
352.200 |
529.800 |
|
|
Cash & Bank Balances |
910.700
|
58.800 |
79.300 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
401.300
|
357.500 |
264.500 |
|
Total
Current Assets |
2481.200
|
1531.600 |
1569.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
3758.600
|
1005.800 |
945.000 |
|
|
Provisions |
377.700
|
302.100 |
272.400 |
|
Total
Current Liabilities |
4136.300
|
1307.900 |
1217.400 |
|
|
Net Current Assets |
[1655.100]
|
223.700 |
352.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
45.100 |
0.600 |
35.000 |
|
|
|
|
|
|
|
|
TOTAL |
1093.800 |
3134.800 |
3560.300 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
5913.600 |
4511.200 |
7514.800 |
|
|
Other Income |
364.600 |
146.800 |
57.500 |
|
|
Total Income |
6278.200 |
4658.000 |
7572.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
176.800 |
[564.800] |
102.600 |
|
|
Provision for Taxation |
6.400 |
1.300 |
0.000 |
|
|
Profit/(Loss) After Tax |
170.400 |
[566.100] |
102.600 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Selling & Administrative Expenses |
98.600 |
103.500 |
134.600 |
|
|
Raw Material Consumed |
2992.100 |
2455.500 |
4105.200 |
|
|
Excise Duty |
863.100 |
645.400 |
1046.600 |
|
|
Salaries, Wages, Bonus, etc. |
611.000 |
561.000 |
525.300 |
|
|
Miscellaneous Expenses |
161.600 |
148.100 |
299.400 |
|
|
Interest & Financial charges |
217.300 |
276.200 |
343.700 |
|
|
Power & Fuel |
863.100 |
645.400 |
1046.600 |
|
|
Depreciation & Amortization |
271.100 |
278.600 |
282.400 |
|
|
Other Expenditure |
138.600 |
179.400 |
185.300 |
|
Total Expenditure |
6216.500 |
5293.100 |
7969.100 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales Turnover |
914.200
|
1522.500
|
1509.600
|
|
Other Income |
55.300
|
62.000
|
30.000
|
|
Total Income |
969.500
|
1584.500
|
1539.600
|
|
Total Expenditure |
896.900
|
1421.300
|
1319.200
|
|
Operating Profit |
72.600
|
163.200
|
220.400
|
|
Interest |
43.400
|
48.600
|
46.300
|
|
Gross Profit |
29.200
|
114.600
|
174.100
|
|
Depreciation |
69.400
|
66.400
|
67.000
|
|
Tax |
0.800
|
1.200
|
0.800
|
|
Reported PAT |
-41.000
|
47.000
|
10.63
|
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
0.66 |
0.97 |
0.93 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
0.88 |
0.68 |
1.13 |
|
Inventory |
8.51 |
6.18 |
12.02 |
|
Debtors |
13.22 |
10.23 |
14.26 |
|
Interest Cover Ratio |
1.81 |
-1.04 |
1.35 |
|
Operating Profit Margin(%) |
11.25 |
-0.22 |
9.94 |
|
Profit Before Interest And Tax Margin(%) |
6.66 |
-6.40 |
6.19 |
|
Cash Profit Margin(%) |
7.47 |
-6.37 |
5.37 |
|
Adjusted Net Profit Margin(%) |
2.88 |
-12.55 |
1.61 |
|
Return On Capital Employed(%) |
11.72 |
0.00 |
9.97 |
|
Return On Net Worth(%) |
141.70 |
0.00 |
31.94 |
LOCAL AGENCY
FURTHER INFORMATION
DIRECTOR REPORT:-
The Directors presents the Forty-Sixth Annual Report, the Audited Annual
Accounts of the Company for the year ended 31st March, 2007 with positive
performance with a net profit of Rs.170.400 millions as compared with the net
loss of As. 5.661 millions in the previous year. The Company's Kochi Unit in
particular, with excellent performance has earned Profit of Rs.737.500
millions.
PERFORMANCE
HIGHLIGHTS:
The overall positive performance with a net profit of Rs. 170.400
millions.
In particular, the Company's Kochi unit has earned a profit of Rs.737.500
millions.
The excellent sales turnover resulted in operating profit of Rs.706.000
millions.
The company has earned Profit before tax Rs.217.600 millions as compared to the
loss before tax of As. 559.000 millions in the previous year.
Reduction in interest costs by As. 59.000 millions over the year.
The Profit after tax and adjustments / provisions Rs.170.400 millions has
yielded an earning per share of Rs. 3 as against Rs.(8) /loss, per share in the
previous year.
OPERATIONS:
The company has completed a successful year in the process of its revival
with a step to attempt to come out of BIFR net. During the year under Report,
the Company's Kochi unit, achieved a rare distinction of higher turnover of
77543 MTs valuing 4120.048 millions as against 56834 MTs valuing 2489.821
millions of the previous year.
With the production of 207110 MTs (main products) during the year 2006-07 as
against the production of 216224 MTs (main products), the Company could achieve
an overall capacity uitlisation of 51% during the year. The Company has
recorded the sale of 128244.56 MTs during the year (last year 138431.72 MTs)
valuing Rs.5059.622 millions (last year As. 3860.467 millions).
The high labour
cost and high incidence of cost on closed plants at Rasayani unit are the major
concerns. The Company has initiated different cost cuffing measures to counter
these problems and in order to be competitive and improve performance and
profitability.
During the year,
the Company has set up Hydrogen bottling facility at plant at Rasayani Unit at
a cost of Rs.6.502 millions to sell the surplus of Hydrogen available from its
plant for captive use, in the neighbouring industries at prevailing market
rates.
PRODUCTION:
Cochin Unit:
During the Year, the Company's Cochin Unit could achieve 157473 MTs of production as against 115644 MTs of the previous year. It is 36% more than the last year's production. This was mainly due to continuous operation of the plant through out, optimally to the fullest capacity.
Rasayani Unit:
During the Year, Rasayani Unit of the Company could achieve only 66226.18 MTs of production as against 123558.47 MTs production of the previous year, 46% less than the previous year's production. This has been mainly due to shut down during the year, of Sulphuric Acid plant and other major plants for technical and maintenance reasons, during the year.
MARKETING:
The company continued to enjoy support from all its valuable customers during the
year 2006-07 due to excellent quality of its products manufactured at Kochi and
Rasayani. It has achieved sales turnover of As. 5059.600 millions (net of
excise duty) as against As. 3860.400 millions (net of excise duty) of the
previous year. The sales volume during year 2006-07 was 128244.56 MTs against
138431.72 MTs for the year 2005-06. Though, during the year under review, the
sales in terms of volume has come down as compared to that of the previous
year, the Company could achieve high sales valuing Rs.5059.600 millions mainly
due to better price realisation.
The company could
not export bulk parcels of Phenol during 200607 due to unremunerative prices of
these products in the export market. The marketing strategy was mainly focused
on domestic customers to maximize the market share by adopting flexible
marketing strategies which helped in encountering the threat posed by the
importers and the domestic competitors as well.
FINANCE
The better price realisation resulted in increased sales value and good
performance on all the fronts, has enabled the company to earn net profit for
the year after provision for taxes and adjustments of Rs.170.400 millions,
recording the turnaround of the company as against the losses in the previous
year. The company could pay off the overdue outstanding Bond / Fixed Deposit
holders under restructured scheme apart from the paying off of the BOB VRS Loan
(Loan Rs.310.000 millions with interest thereon).
TURNAROUND PROGRAMME
The Company has already started the implementation of Rehabilitation Plan (as approved by the Government) for the restructuring of their Company.
1. As a part of Restructuring, the Company is in the process
of setting up/ Re start of its Caustic Soda /Chlorine Plant and its auxiliary,
for which Engineering and Project Management Consultants have been appointed,
orders have been processed for procurement of Imported Spares, consumable
parts. Further, the Plant is already commissioned and is now tentatively
proposed to commence production in the Caustic Soda Plant by January,
2008.
2. Further, as a part of implementation of Revival Package, the Company has
settled a) the outstanding loan in respect of Bank of Baroda (VRS Loan) and b)
approximately 940/m of the outstanding dues of the Bond holders as per their
approved Restructuring Scheme. The restructuring and repayment of the remaining
few Bond holders are expected to be effected and completed during the current
year.
3. The Company has introduced Voluntary Retirement Scheme (VRS) for its
employees during the year under review. However, the response was moderate as
only 69 employees opted for the scheme. The Company is proposing to study the new
products based on hydrogenation process as suggested by the High Powered
Advisory Committee, Ministry of Chemicals and Fertilizers, GOI, for which the
Company plans strategy of outsourcing Hydrogen Gas from nearby industry at very
economical rate based on the natural gas norms which would enhance the
profitability of their Rasayani unit considerably.
4. Further, with the availability of natural gas, Company also plans to put up
Power Plant based on the Furnace Oil/ Natural Gas duel feed arrangement to
economise on the operation (other than the possibility of putting up a coal
based Power Plant which would be forming part of the best options available at
Rasayani).
HRD Index i.e. training mandays/working employees/(mandays) achieved
for all the employees is:
Cochin unit:
HRD Index was 923/440 i.e. 2.09, Target for the year was 750 man days, as
against, achieved during the year was 923 man days
Rasayani unit
825/1073(employees) i.e. 0.76% mandays per employee was
achieved as against the target of 0.65.
2. In-Company Training Programes:
In-company training programmes were conducted mainly on Personality Development, Communication skills, Developing Personal skills and Technical skills, Interpersonal Relations, Team Building, Fire and Safety, HIV-AIDS Awareness, Stress Management, etc. both at Kochi and Rasayani units. During the year 2006-07 at Rasayani Unit, in all 55 Training programmes were conducted, 1784 mandays were trained during in company training programmes, 81 mandays were trained through sponsorship (outside) training and 162 mandays were trained through on the job training. i.e. Total Mandays Trained = 2027. At Kochi Unit 360 Mandays were trained through Internal training programme and'352 Mandays were trained through external training.
In a11712 Training
Mandays were achieved at Kochi Unit, Further, at Kochi unit, 85 officers
(51.8%)and 167 non officers (60.5%) and at Rasayani unit, 346 officers and 378 non-officers(total
668 man days) participated these training programmes.
Mandays trained during the year was (2739/1458) 1.90 Training
Mondays/Employee.
3. External Training Programmes
Approx. 57 Executives (157 man days) were nominated to (approx.) 57
External training Programmes during the year.
ISO CERTIFICATION
Both Rasayani and Kochi units obtained ISO 9001-2000 Certification by
Bureau Veritas Quality International (BVQI). Kochi unit has also been awarded
ISO 14001 : 22004 standard (Environment Management System) and re-certified and
also obtained re-certification for IS09001 2000 (Quality Management System) by
BVQI.
HINDUSTAN
FLUOROCARBONS LIMITED (Subsidiary)
During the year under review HFL has achieved production of 245 MTs as against 228 MTs in the previous year, thus achieving a sales turnover of Rs. 165.700 millions (Pr. Yr. 180.400 millions.) The total income for the year 2006-07 was-Rs.165.700 millions as against Rs. 180.400 millions for the year 2005-06.
Consequently even at the operating level, HFL made a loss of Rs.24.600 millions for 06-07 as compared to operating loss of Rs. 39.700 millions in the year 05-06. Due to its vigorous efforts, HFL was successful in imposing anti dumping duty on imports from Russia and China. The Company has selected the technology and provider of turnkey project of CDM, It is expected that Registration of the project and accruing of the CER Credits will commence in the coming financial year.
As the Members are aware, being a sick company, HFL has been referred to BIFR.
A comprehensive rehabilitation proposal for HFL is being submitted by
HOC.
The audited
accounts along with Auditor's report and Directors' report are appended which
are subject to the audit of CAG a/sec.619(4) of the Companies Act, 1956.
Future Plans
(Rasayani and Kochi Units):
More Variable Frequency Drives will be installed at boiler feed water pump, hydrogenation feed pump, tempered water cooler fan and raw water pump to reduce consumption of electrical energy at Kochi unit and cooling tower pumps at Rasayani unit will further reduce the power consumption.
Restart
of concentrated nitric acid plant at Rasayani unit with replacement and
modification in the inter stage coolers will bring down the power consumption
in nitric acid plant substantially.
Depending
upon the product mix of Rasayani unit's operation, further optimisation of
transformers operation and monitoring of lighting load in various plants will
save electrical energy.
Effective
measures to reduce pressure drop in the transportation of the effluent from the
lagoons to disposal point that is about 8 kilometers away at Rasayani unit have
been completed. The system is ready for operation.
This will reduce
the power consumption in the transportation of the effluent.
With the re start
of caustic soda plant in the year 2007-08, capacitor bank's management is being
reviewed to ascertain the unit power factor at Rasayani unit.
REVIEW OF FINANCIAL
PERFORMANCE
The financial
performance highlights are as follows:
The sales turnover was of the order of Rs. 5059.600 millions against Rs.
4510.300 millions for the previous year showing an increase of 12%. Other
income was Rs. 362.100 millions against Rs. 141.000 millions for the previous
year. There was an Operating Profit before interest and depreciation of Rs.
706.000 millions against the Operating Loss of Rs. 4.100 millions for the
previous year.
Company incurred
an Interest expenditure of Rs. 217.300 millions against Rs. 276.300 millions for the previous year, showing an
improving trend in the cost reduction.
The outlook for
the future appears to be good with the revival of economic growth. The
Accumulated losses are likely to go down further substantially during the year
in view of proposed implementation of several improvement plans for Rasayani
and Kochi Units, complete restructuring of Debts of Bond/Fixed Deposit holders
and repayment thereof as per the restructuring package for the revival of the
Company as approved by the Govt. for implementation in the company.
WEBSITE DETAILS:
Achievements and Awards
HOC has received a multitude of accolades and awards.
They include.
|
Year |
Description |
|
|
|
|
1976-77 to1980-81 |
Export Award from CHEMEXCIL for five
consecutive years. |
|
1977 |
Dujodhwala Endowment Award by All India Manufacturers Organisation
(AIMO for Recovery of Resorcinol from Waste Stream of MAP plant. |
|
1979 |
First Prize for HOC's Annual Report (1978-79) in the 21st National Award
for Excellence in Printing and Designing by DAVP, Ministry of Information and
Broadcasting, Government of India. |
|
1980-81 |
"Award in the “Public Services Advertisement Category” for HOC's
Advertisement captioned “Eye Appeal” for its Community Vision Project, by
DAVP. |
|
1982 |
Indian Chemical Manufacturers Association Award for Process Design and
Process Engineering for developing know-how and installing a Detoxification
plant for Solvent Extraction. |
|
1982-83 |
Institute of Chartered Accountants' Shield for the best presented
Annual and Report. |
|
1983-84 |
"National Society for equal opportunity of handicapped (NASEOH)'s
Award for being an ideal Employer. |
|
1984 |
Grocery Markets and Shops Board for Greater Bombay (Mathadi) Board's
Award for being an ideal Employer. |
|
1987-88 |
Indira Gandhi Memorial National Award for Excellence in Public Sector
Enterprises. |
|
1988 |
First Prize for HOC's Annual Report 1986-87 from Association of Business
Communicators of India. |
|
1989 |
Certificate of Commendation for HOC Annual Report 1987-88 from the
Association of Business Communicators of India. |
|
1989 |
Second Prize in suggestion scheme by the Indian National Suggestion
schemes Association. |
|
1989-92 |
Productivity Award from Kerala
Productivity Council. |
|
1989-91 |
Industrial Safety Award Kerala Chapter (1998-1991) and consequently
thereafter from the year. |
|
1993-98 |
1993 till 1998. |
|
1991-92 |
First Prize in the Chemical sector for Energy Conservation for the
year 1991-92 by Government of India, Ministry of Energy, Department of Power.
|
|
1995 |
Dyestuff Manufacturer's Industries' Association – Industrial Pollution
Control Award – 1995. |
|
1995 |
Certificate of Merit by the Kerala State Pollution Control Board for
Kochi unit. Second Price for Safety from the Kerala Chapter of the National
Safety Council. |
|
1995 |
Wisitex Foundation International Award Life 2000 (1994) for National Excellence
in Industrial Pollution Abatement. |
|
1996 |
The Dyestuff Manufacturers Association of India's Award (DMAI) for
successful development of indigenous technology for product by a large scale
unit for the year 1995-96. |
|
1996-98 |
First prize award from Kerala State Pollution Control Board among
large scale industries in making substantial and sustained efforts in
pollution control. |
|
1996-98 |
Prize for Energy Conservation in Chemical Industry by Ministry of
Energy, Government of India successively for two years (1996-97, 1997-98). |
|
1997-98 |
First Prize for Indira Gandhi Official Language Puraskar for the year
1997-98 for Best Implementation of Rajbhasha Hindi. |
|
1998 |
Kerala State Productivity Council's Productivity Award among large
Industries in Kerala – 1998. |
|
1998 |
ICICI Technology Award by National Chemical Laboratory Research
Foundation jointly with the Process Development and Chemical Engineering
Division Team Members of National Chemical Laboratory for the Mono Chloro
Benzene Expansion Project. |
|
1999 |
National Energy Conservation Award, 1999 – First Prize in Chemical
Sector by Government of India, Ministry of Power, New Delhi. |
|
2000 |
National Energy Conservation Award, 2000 – First Prize in Chemical
Sector by Government of India, Ministry of Power, New Delhi |
|
2001 |
National Energy Conservation Award, 2001 – Second Prize in Chemical
Sector by Government of India, Ministry of Power, New Delhi |
Quality and ISO
Certification
The Company’s products have always conformed to international standards. Its quality assurance system in its Kochi and Rasayani Units has been recognised with ISO 9001-2000 certificate by Bureau Veritas Quality International (BVQI).
Their Kochi Unit has also received ISO 14001-1996 certification in
Environmental Management System.
Company Profile
Subject was set up by the Government of India in 1960 with the objective of attaining self-reliance in basic organic chemicals needs. In fact this was the first endeavor to indigenise manufacture of basic chemicals and to reduce country’s dependence on import of vital organic chemicals. Subject started as small chemical unit, has today acquired the status of a multiunit company with two fast growing units and one subsidiary unit.
It was expected that indigenous manufacture of these
chemical intermediates will give impetus to downstream industries resulting in
setting up of chemical units and achieving self-sufficiency for the country in
this area. This objective of setting up company has been achieved and at
present more than 500 units based on the company’s products have been set up all
over the country which have not only succeeded in meeting the goal of
self-sufficiency but also entered the international markets earning precious
foreign exchange by exporting chemicals, dyes and drugs.
Business
The company has two manufacturing units at Rasayani, Dist. Raigad in Maharashtra and at Kochi in Kerala. The Company also has it's subsidiary HFL manufacturing unit at Hyderabad in Andhra Pradesh.
The main products manufactured by subject are Phenol, Acetone, Nitrobenzene, Aniline, Nitrotoluenes, Chlorobenzenes and Nitrochlorobenzenes. The raw materials used by HOCL are Benzene, Toluene, LPG, Methanol, Naphtha and Sulfur, majority of which come from petroleum refineries.
Subject provides the basic organic chemicals essential for vital industries like resins and laminates, dyes and dyes intermediates, drugs and pharmaceuticals, rubber chemicals, paints, pesticides and others, touching virtually facet of everyday life.
Subject provides the basic organic chemicals essential for vital industries like resins and laminates, dyes and dyes intermediates, drugs and pharmaceuticals, rubber chemicals, paints, pesticides and others, touching virtually facet of everyday life.
It also produces the versatile engineering plastic polytetrafluoroethylene (PTFE) through its subsidiary
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.40.05 |
|
UK Pound |
1 |
Rs.78.75 |
|
Euro |
1 |
Rs.37.32 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
--- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--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 |
YES |
|
--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 |
|