MIRA
INFORM REPORT
|
Report Date : |
23.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
TRANSPEK INDUSTRY
LIMITED |
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Registered Office : |
6th
Floor, Marble Arch, Race Course Circle, Vadodara – 390007, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
06.10.1965 |
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Com. Reg. No.: |
04-1943 |
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CIN No.: [Company
Identification No.] |
L23205GJ1965PLC001943 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDT00491B |
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PAN No.: [Permanent
Account No.] |
AAACT8639B |
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Legal Form : |
A public limited
liability company. The company's shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing of
Sulphoxylate, Chlorinated Compounds, Rubber Chemicals & Related
Chemicals, So3/Oleum, Oil Field & Related Chemicals and Other Zinc Base
Chemicals |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 1575844 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
– established company having fine track. Trade relations are fair. General
financial position is satisfactory. Payments are usually correct and as per
commitments. The company can
be considered good for any normal business dealings. It can be
regarded as a promising business partner in a medium to long – run. |
LOCATIONS
|
Registered
Office /Factory /Corporate
Headquarter : |
6th Floor, Marble Arch, Race Course Circle, Vadodara –
300007, Gujarat, India |
|
Tel. No.: |
91-265-2335444 [ 3 lines], 2334141 / 2358236 / 2342262 / 2335757 |
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Fax No.: |
91-265-2335758 |
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E-Mail : |
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Website : |
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Factory 1 : |
Ekalbara 391 440, Taluka Padra, District Vadodara, Gujarat, India |
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Tel. No.: |
91-2662-222318 / 222309 / 221276-77 / 222287 / 222289 |
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Fax No.: |
91 2662 -223439 |
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E-Mail : |
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Website : |
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European Office |
112 Red Lion Lane,
Shooters Hill, Woolwich, London SE18 4LE Tel : +44-7843565118 |
DIRECTORS
|
Name : |
Mr. A. G. Shroff |
|
Designation : |
Managing Director |
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Date of Birth/Age : |
59 years |
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Qualification : |
S. S. C. |
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Experience : |
39 years |
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Date of Appointment : |
01.12.1981 |
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Previous
Employment |
Excel Industries Limited |
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|
Name : |
Mr. Ashwin C.
Shroff |
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Designation : |
Chairman |
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Date of Birth/Age : |
22.01.1945 |
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Qualification : |
Science Gradate |
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Date of Appointment : |
02.05.1980 |
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Brief Resume : |
Shri A. C.
Shroff is the Chairman and Managing Director of Excel Industries Ltd. He is a
Science graduate and started his career in 1965 as a young trainee and has
grown to spearhead Excel Industries Ltd. Along these crucial years of growth,
both Excel Industries Ltd. and Mr. Shroff have emerged stronger
revolutionizing the agrochemical market scenario in India. He was the
President of Indian Chemical Manufacturers
Association during 1996-1998. He is also the Chairman of Roha Industries
Association. He has been a leading spokesperson of chemical industry and has
represented various issues of the industry to the Government of India. |
|
Other Public
Companies in which Directorship held |
Ø Excel Industries
Limited (Chairman & Managing Director) Ø Excel Crop Care
Limited (Chairman & Director) Ø Kamaljyot
Investment Limited Ø ECCL Investments
and Finance Limited . Ø Transpek-Silox
Industry Limited (Chairman &
Director) Ø Phthalo Colours
& Chemicals (I) Limited Ø Waxsam Ltd.,
Hong Kong |
|
Other Public
Companies in which membership of Committees of Directors held |
Ø Chairman &
Member of Shareholders/ Ø Investor
Grievance Committee Ø Excel Crop Care
Limited |
|
|
|
|
Name : |
Mr. R. R. Patel |
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Designation : |
Director |
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Date of Ceasing : |
29.03.2007 |
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|
Name : |
Mr. Dhirajlal C
Gami |
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Designation : |
Director |
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Date of Birth/Age : |
26.09.1927 |
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Qualification : |
M. S. from the University of Michigan, U.S.A |
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Experience : |
39 years |
|
Date of Appointment : |
30.07.1984 |
|
Brief
Resume : |
Shri D. C. Gami is a M. S.
(Chemical Engineering) from the University of Michigan, USA. He has vast
experience of more than 52 years in research, project planning, execution,
operations and management. He had also served as Managing Director of State
owned fertilizer company (now known as "Gujarat State
Fertilizers & Chemicals Limited"). |
|
Other Public
Companies in which Directorship held |
Ø Jindal Hotels
Limited (Chairman) Ø Ashok Organic
Industries Limited Ø Gujarat JHM
Hotels Limited Ø Environment
Infrastructure Company Limited |
|
Other Public
Companies in which membership of Committees of Directors held. |
Chairman of
Audit Committee Ø Gujarat JHM
Hotels Limited Ø Jindal Hotels
Limited Ø Ashok Organic
Industries Limited |
|
|
|
|
Name : |
Mr. D K Shroff |
|
Designation : |
Director |
|
Brief
Resume : |
Shri Dipesh K. Shroff, son of Chairman Emeritus, Shri Kantisen C.
Shroff, aged 46 years, having done Diploma in Civil Engineering, M. E. P.
from IIM, Ahmedabad and OPM from Harvard Business School, Boston, is presently
the Managing Director of Excel Crop Care Limited, a listed Company. He is
also trustee of Vivekananda Research & Training Institute, Kutch,
Chairman of International Resources for
Fairer Trade Mumbai, and Trustee & Adviser of "Shrujan".
|
|
Other Public
Companies in which Directorship held |
Ø Excel Crop Care
Limited (Managing Director) Ø Excel Industries
Limited Ø Agrocel
Industries Limited Ø Kamaljyot
Investments Limited Ø Shroffs
Engineering Limited Ø Upexcel Limited Ø Excel Industries
Euro N. V., Belgium Ø Hyderabad
Chemical Supplies Limited Ø Parul Chemicals
Limited Ø Aimco Pesticides
Limited |
|
Other
Public Companies in which membership of Committees of Directors held. |
Ø Hyderabad
Chemicals Supplies Limited Member of Shareholders/Investor Grievance
Committee Ø Excel Industries
Limited |
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|
Name : |
Mr. M L Shah |
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Designation : |
Director |
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|
Name : |
Mr. M D Patel |
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Designation : |
Director |
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Name : |
Mr. A H Patel |
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Designation : |
Director |
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|
Name : |
Dr. Bernd Dill |
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Designation : |
Additional
Director |
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Date of Birth/Age : |
17.09.1950 |
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Qualification : |
School and
University education with emphasis on mathematics and natural sciences |
|
Date of Appointment : |
22.06.2007 |
|
Resume : |
Dr. Bernd Dill, a German National, has done his school and
university education with emphasis on mathematics and natural sciences,
Doctoral Thesis Summa Cum laude at Frankfurt University. At present he is
holding position as Executive Vice President Technology of LURGI AG in
Frankfurt and is also a Director on the Board of Sasol / Lurgi, South Africa
w.e.f. 03.11.2006. He is having solid technical background, extensive
experience in managing people from culturally very different environments,
identification and recognition of talented and outstanding people, strong
business and customer orientation, negotiating skills and experience and
initiative, drive and result orientation. He holds membership of several
professional organizations, some of which are National Technology and
Environment Council of the German Chemical Industry Association, British
Chemical Industry Association, American Chemical Society, Optical Society of
America etc. He is also a member of the publishers' Board for Roempp's
Chemical encyclopedia. |
|
Other Public Companies in
which Directorship held |
Ø Sasol/Lurgi, South Africa |
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|
|
|
Name : |
Mr. A C Shroff |
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Designation : |
Chairman |
KEY EXECUTIVES
|
Name : |
Mr. S. K. Solanki |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Indian Promoters |
|
1525534 |
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Life Insurance Corporation of India |
|
216132 |
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United India Insurance Company Limited |
|
28750 |
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National Insurance Company Limited |
|
74950 |
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Unit Trust of India |
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2450 |
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Stock Holding Corporation of India Limited |
|
200 |
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Southern India Depository Services Private Limited |
|
250 |
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Nationalised banks |
|
4362 |
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Shares Pledged with Citibank N.A. |
|
950 |
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Foreign Company/institutions |
|
420 |
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Non resident individuals |
|
34157 |
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Other body corporate |
|
434137 |
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Individuals |
|
2750748 |
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Total
|
|
5073040 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Sulphoxylate, Chlorinated Compounds, Rubber Chemicals & Related
Chemicals, So3/Oleum, Oil Field & Related Chemicals and Other Zinc Base
Chemicals |
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|
Products : |
Item Code No.
(ITC Code) : 283110.01 Product
Description : Sodium Hydro Sulphite Item Code No.
(ITC Code) : 283190.02 Product
Description : Sodium Formaldehyde Sulphoxylate Item Code No.
(ITC Code) : 281210.04 Product
Description : Thionyl Chloride |
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Imports : |
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Countries : |
Europe and Far
East |
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Terms : |
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Purchasing : |
L/C terms |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Chlorinated Compounds |
MT |
17550 |
37390 |
21668 |
|
SO3/Oleum |
MT |
33000 |
40500 |
29212 |
GENERAL
INFORMATION
|
No. of Employees : |
463 |
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Bankers : |
v
State Bank
of India v
Axis Bank
Limited v
Bank of
Baroda |
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Facilities : |
Notes : 1. Loans on Cash
Credit Accounts from State Bank of India, Bank of Baroda and AXIS Bank
Limited (hereafter collectively referred to as “Consortium of Banks”) are
secured by first charge by way of hypothecation of stocks of raw materials,
packing materials, consumable stores, finished goods, semi-finished goods and
book-debts. The aforesaid cash credit facilities are further secured by way
of charge on the whole of the fixed assets of the Company ranking second and
subservient for the charges created in respect of borrowings obtained from
them The additional Cash Credit facilities amounting to Rs.82.500 Millions
obtained from the Consortium of Banks during the year are to be secured by
way of an equitable mortgage on whole of the fixed assets of the Company,
both present and future, ranking second and subservient to the existing first
charge holders viz. State Bank of India and AXIS Bank Ltd. 2. Corporate
Loan from State Bank of India amounting to Rs.12.000 Millions (Previous Year Rs. 16.000 Millions ) is
secured by first charge by way of hypothecation of all the movable assets
both present and future of the Company (excluding current assets charged in
favour of Consortium of Banks for securing borrowings for working capital
requirements). The said loan is further secured by first charge by way of an
equitable mortgage on the whole of the fixed assets of the Company, both
present and future on pari passu basis with existing second and subservient
charge holders. 3. Term Loan
from AXIS Bank Limited amounting to Rs.59.226 Millions (Previous
Year:Rs.68.316 Millions) or equivalent in foreign currency is secured by
first charge by way of hypothecation of all machinery financed or to be
financed under the said term loan. It is further secured by first charge by
way of hypothecation of all the movable assets of the Company (excluding
book-debts and other current assets charged in favour of Consortium of Banks
for securing borrowings for working capital requirements). The said loan is
also further secured by first charge by way of an equitable mortgage on the
whole of the fixed assets of the Company, both present and future, on pari
passu basis with existing second and subservient charge holders. 4. Term loan
from Bank of Baroda amounting to Rs.88.886 Millions (Previous Year Rs.Nil) is
secured by first charge by way of hypothecation of all movable machinery
financed or to be financed under the said term loan. The Bank of Baroda has
agreed and ceded second pari passu charge in favour of State Bank of India
and AXIS Bank Ltd. On the said movable machinery financed / to be financed
out of the said term loan, for their respective working capital limits
sanctioned to the Company. The said loan is to be also further secured by
first charge by way of an equitable mortgage on the whole of the immovable
assets of the Company, both present and future, on pari passu basis with
existing first charge holders viz. State Bank of India and AXIS Bank Ltd. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. V. Ghatalia
& Associates Chartered
Accountants |
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Subsidiaries : |
Ø Excel Industries
Limited Ø Excel Crop Care
Limited Ø Transmetal
Limited Ø Shroff
Engineering Limited Ø Anshul
Speciality Molecules Limited Ø Agrocel
Industries Limited Ø Anshul Agencies Ø Shroff
Foundation Trust Ø Hyderabad
Chemical Supplies Limited Ø Transchem
Agritech Limited Ø C.C.Shroff
Research Institute |
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Associates |
Ø Transpek Silox
Industry Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7500000 |
Equity Shares |
Rs. 10/- each |
Rs. 75.000 Millions |
|
500000 |
Preference Shares |
Rs. 100/- each |
Rs. 50.000 Millions |
|
|
|
Total
|
Rs.125.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5073040 |
Equity Shares |
Rs. 10/- each |
Rs. 50.730 Millions |
Note: of the above Equity Shares
Ø 2686632 Equity
Shares have been allotted as fully paid-up by way of Bonus Shares by
capitalization of General Reserve.
Ø 250000 Equity
Shares have been allotted as fully paid-up pursuant to a scheme of amalgamation
without payments being received in cash.
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 |
50.730 |
50.700 |
50.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
343.231 |
305.700 |
270.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
393.961 |
356.400 |
320.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
235.236 |
194.700 |
153.000 |
|
|
2] Unsecured Loans |
91.134 |
139.300 |
98.000 |
|
|
TOTAL BORROWING |
326.370 |
334.000 |
251.000 |
|
|
DEFERRED TAX LIABILITIES |
81.187 |
0.000 |
0.000 |
|
|
DEFERRED PAYMENT LIABILITIES |
27.269 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
828.787 |
690.400 |
571.700 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
533.273 |
458.500 |
363.800 |
|
|
Capital work-in-progress |
23.334 |
22.600 |
19.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
46.282 |
80.300 |
80.300 |
|
|
FIXED ASSETS HELD FOR DISPOSAL |
4.583 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
23.286 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
112.472
|
87.500
|
83.400 |
|
|
Sundry Debtors |
188.058
|
222.800
|
167.300 |
|
|
Cash & Bank Balances |
25.213
|
13.200
|
7.200 |
|
|
Other Current Assets |
0.198
|
0.000
|
0.000 |
|
|
Loans & Advances |
74.138
|
60.700
|
68.400 |
|
Total
Current Assets |
400.079
|
384.200 |
326.300 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
160.228
|
230.200
|
211.200 |
|
|
Provisions |
42.306
|
30.000
|
17.400 |
|
Total
Current Liabilities |
202.534
|
260.200 |
228.600 |
|
|
Net Current Assets |
197.545
|
124.000
|
97.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.484 |
5.000 |
1.000 |
|
|
|
|
|
|
|
|
TOTAL |
828.787 |
690.400 |
571.700 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
803.077 |
772.624 |
627.300 |
|
|
Other Income |
32.310 |
10.200 |
0.000 |
|
|
Total Income |
835.387 |
782.824 |
627.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
74.356 |
80.915 |
27.500 |
|
|
Provision for Taxation |
27.362 |
30.404 |
1.300 |
|
|
Profit/(Loss) After Tax |
46.994 |
50.511 |
26.200 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
268.722 |
174.986 |
NA |
|
|
|
|
|
|
|
|
Total Imports |
76.307 |
18.832 |
NA
|
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing and other Expenses |
686.373 |
625.902 |
|
|
|
Purchase of Traded Goods |
5.875 |
2.613 |
|
|
|
Depreciations |
44.071 |
37.598 |
|
|
|
Interest and other financial costs |
33.115 |
30.863 |
|
|
|
Short /[excess] Provisions [Net] |
[0.836] |
0.001 |
|
|
|
Amortization of Deferred revenue Expenses |
4.479 |
5.069 |
|
|
|
Increased in stocks |
[12.046] |
[0.137] |
|
|
Total Expenditure |
761.031 |
701.909 |
628.600 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
194.400 |
273.100 |
311.700 |
|
Other Income |
8.400 |
2.200 |
10.700 |
|
Total Income |
202.800 |
275.300 |
322.400 |
|
Total Expenditure |
190.800 |
246.900 |
278.300 |
|
Operating Profit |
12.000 |
28.400 |
44.100 |
|
Interest |
09.000 |
10.000 |
12.400 |
|
Gross Profit |
03.000 |
18.400 |
31.700 |
|
Depreciation |
12.400 |
12.300 |
12.500 |
|
Tax |
00.500 |
0.400 |
4.200 |
|
Reported PAT |
-08.900 |
5.000 |
12.300 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.92 |
0.86 |
0.82 |
|
Long Term Debt-Equity Ratio |
0.65 |
0.63 |
0.65 |
|
Current Ratio |
1.06 |
1.09 |
1.09 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
1.02 |
1.19 |
1.02 |
|
Inventory |
8.46 |
9.63 |
10.11 |
|
Debtors |
4.12 |
4.22 |
4.13 |
|
Interest Cover Ratio |
3.24 |
3.61 |
4.30 |
|
Operating Profit Margin(%) |
17.91 |
18.19 |
20.39 |
|
Profit Before Interest And Tax Margin(%) |
12.69 |
13.58 |
15.64 |
|
Cash Profit Margin(%) |
10.77 |
10.75 |
12.57 |
|
Adjusted Net Profit Margin(%) |
5.55 |
6.14 |
7.83 |
|
Return On Capital Employed(%) |
14.99 |
17.91 |
17.44 |
|
Return On Net Worth(%) |
12.53 |
14.92 |
14.74 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
Ø
Land
Ø
Building
Ø
Pumps and Water Pipe lines
Ø
Plant and Machinery
Ø
Electrical Installations
Ø
Research and development equipments
Ø
Furniture and Fixtures
Ø
Technical Books
Ø
Vehicles
DIRECTOR REPORT:
REVIEW OF
OPERATIONS:
The net sales of the Company for the year under review increased to
Rs.803.100 Millions from Rs.772.600 Millions in the previous year, registering
a nominal growth of 4%. In the first six months the performance of the Company
was excellent as compared to the corresponding six months in the previous year
which was mainly due to increased exports, major savings in raw-material cost
particularly in Chlorine and change in product-mix. The Acid Chloride products
have continued to take lead in the beginning of the current year. However, due
to substantial fall in the volume and value of sales in the subsequent six
months, the top line growth for the year under review was restricted to merely
4% over previous year and profit was marginally lower as compared to previous
year.
During the year under review the Company established closer contact with
overseas customers, identified and developed new products, increased capacity
in certain plants by additions to fixed assets.
Export sales have been
receiving focussed attention as a result of which it registered a growth of
fifty four per cent (54%) from Rs.175 Millions to Rs.268.700 Millions
constituting 33% of the total sales turnover of the Company.
Stiff competition both in
the domestic and export markets, addition of newer customers to its customer
base, efforts to introduce newer molecules, strengthening of export packaging
including addition to the fleet of ISO tanks have been the highlights of the
year under review.
NEW PROJECTS /
EXPANSIONS / IMPROVEMENTS:
During the year under review, the installed capacity of Thionyl Chloride plant increased to 23% per annum. Continuous process improvements resulted in reduction in costs and in effluent and by-products generation. De-bottle-necking of the SO plant resulted in an increase in its capacity to 12% per annum. Certain by-products 3 causing disposal problems were used for producing new marketable products in pilot plant which will be commercialized in the near future.
By strengthening R and D
activities, three new products were added to the product slate of the Company
during the year.
OUTLOOK:
The Company
is gearing up for higher production to match its market expansion activities in
the current year.
QUALITY MANAGEMENT
SYSTEM CERTIFICATION:
Quality of their products has been accepted by more and more customers in domestic as well as in international markets.
Recertification audit of
their QMS was carried out on 1st and 2nd June - 2006 by M/s. TUV and
certification was renewed for further 3 years.
There has been continuous
up-gradation of product specifications. In their product categories, we have
benchmarked with the best in the world. Their internal specifications are
uniformly more stringent than those given by customers.
ENVIRONMENT:
The Environment Management
System was upgraded as per the revised version of ISO 14001 : 2004 and was
maintained throughout the year. The Company has contributed to the conservation
of natural resources by rain water harvesting, process water recycling and by
addition of bio-filter methods for using toilet and canteen waste.
Seven thousand trees have
been planted during the year and a garden has been developed all along the
boundary wall of the factory premises. An in-house nursery has also been
developed.
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The company's main product - Thionyl Chloride - is an intermediate for crop protection chemicals, especially insecticides. Though increasing emphasis is placed by Government on improvement in agricultural productivity, the domestic crop protection industry viz. insecticide is beset with large inventories essentially due to uncertainties caused by the seasonal nature of the business coupled with high level of competition and reduced demand for crop protection chemicals by cotton growers due to the increased use of BT cotton seeds. In the international arena, the industry is not growing. These factors had their effect in the Company's Thionyl Chloride business in the insecticides space.
Use of Thionyl Chloride in
dyes industry has shown improvement. However, due to entry of new manufacturers
in the dyes and Pharma segments, the Company could not increase sales volume in
this sector. Efforts are in progress to reverse this trend in the dyes segment
because of their improved quality and services.
They also see a good
opportunity in Pharma segment for their new Acid Chlorides for bulk drugs both
in the domestic and international markets.
Acid chlorides also have
applications in polymers. The strategic positioning of the Company in the
international market for acid chlorides in the polymers sector about two years
back has resulted in increased exports and this strategy will be continued in
the coming years. Similarly strategy is being adopted in pharmaceuticals,
dyestuffs and other speciality performance chemicals and these industries
indicate promising growth. Herbicides and fungicides also seem to have a bright
future both in the domestic and export markets and the Company is focusing in
that segment too.
Opportunities and
threats:
Opportunities
Having regard to the industry trends as outlined above, it is proposed to
concentrate on developing products catering to the manufacture of herbicides,
fungicides, polymers, pharmaceuticals, dyestuffs and speciality performance
chemicals.
Threats:
New players have
entered the domestic market for Thionyl Chloride. Together with imports, these
have resulted in stiffer competition in a shrinking market, subdued prices for
the product and reduced margins.
The strengthening of the
Rupee against the US Dollar is also a factor contributing to lower export price
realization and pressure on margins.
Lowering of import duty
coupled with weakening of the Dollar against the Rupee will encourage increased
import of Thionyl Chloride in India.
However, the Company is
capable of overcoming such competition in future due to its intensive efforts
in improving operational efficiency and effecting cost reduction in every
sphere.
As reported last year, they
are continuing with effective implementation of KAIZEN techniques throughout
the organization.
Outlook:
The monsoon in the current year is expected to be good and thus the demand for
crop protection chemicals is likely to increase. This is likely to increase
sales of Thionyl Chloride despite the threats outlined above.
Effective cost reduction
measures undertaken by the Company are also likely to result in effectively
meeting the challenges and threats. Efforts in progress to increase captive
consumption of Thionyl Chloride for acid chlorides production catering to industries
other than agrochemicals are also likely to have a favourable impact on the
Company's overall business.
RISKS AND CONCERNS:
The vagaries of monsoon are a major area of concern. If the actual rainfall does not match with predictions, reduced offtake of agrochemicals resulting therefrom would pose a threat to the domestic sales of Thionyl Chloride.
The continuing trend of the
Rupee becoming stronger is another area of concern.
Appropriate steps as outlined above are, however, being
initiated to mitigate these risks and concerns.
Internal Control Systems and their
adequacy:
The Company maintains an adequate and effective internal control system commensurate with its size and complexity. They believe that these internal control systems provide, among other things, a reasonable assurance that transactions are executed with management authorizations and that they are recorded in all material respects to permit preparation of financial statements in conformity with established accounting principles and that the assets of the Company are adequately safe-guarded against significant misuse or loss.
An independent internal
audit function is an important element of the Company's internal control
system. The internal control systems are supplemented through an extensive
internal audit programmed and periodic review by management. The Company has
clearly laid down policies, guidelines and procedures that form part of its
internal control systems.
AS PER WEBSITE DETAILS :
History
Established in 1965,
Transpek Industry (TIL) went public in Sep.'78. It started with the manufacture
of acrylic plastic sheets at its plant at Atladra (Vadodra district), Gujarat.
In 1969, it discontinued manufacturing acrylic sheets and started manufacturing
chemicals.
PROFILE :
Subject was set up in 1965 initially for manufacturing Transparent Acrylic Sheets. There lies the origin of the word "Transpek". The Company is the leading manufacturers and exporters of a range of chemicals servicing the requirements of customers from a diverse range of industries - Textiles, Pharmaceuticals, Agrochemicals, Polymers, etc.
With its expertise in
handling Chlorine and Sulphur, Transpek has indigenously developed process for
chlorinated chemicals like Thionyl Chloride and Chloro Acetyl Chloride. The
capacity for Thionyl Chloride at Transpek is the largest outside Europe.
Transpek used to
manufacture Sodium Hydro Sulfite, Safolite, Safoline, Zinc Oxide and Zinc Dust.
This business since has been transferred to Transpek Silox Industry Limited, a
Joint Venture .
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 39.91 |
|
UK Pound |
1 |
Rs. 78.44 |
|
Euro |
1 |
Rs. 59.13 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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 |
|