MIRA
INFORM REPORT
|
Report Date : |
29.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
EXCEL INDUSTRIES
LIMITED |
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Registered Office : |
184-87, Swami Vivekanand Road, Jogeshwari (West), Mumbai - 400102, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.09.1960 |
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Com. Reg. No.: |
11-11807 |
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CIN No.: [Company
Identification No.] |
L24200MH1960PLC011807 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUME00146G |
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Legal Form : |
Public Limited
Liability Company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and
Marketing of Phosphorous and its Compounds viz. Phosphorous White,
Phosphorous Pentasulphide, Phosphorous Trichloride, Dimethly / Dethyl Thio
Phosphoryl Chloride, Ortho Phosphoric Acid and its derivatives; Pesticides
viz. Aluminium Phosphide, Methoxy Ehtyl Mercury Chloride, Wettable Sulphur,
Zinc Phosphide, Endosulfan, Gluphosate, Chlorpyriphos Technical; Chemicals
viz. Mercury Salts, Sodium Penta Chloro Phenate, Pentachloro Phenol,
Trichloro Phenol, Butene Diol, Malathion Technical / Dethyl Oxalate, Acetyl
Chloride and Organics Manure. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 3821076 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having moderate track. Trade relations are fair. Payments
are reported as correct and as per commitments. Profit margin is under severe
pressure. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered/ Head Office : |
184-87, Swami Vivekanand Road, Jogeshwari (West), Mumbai - 400 102, Maharashtra, India |
|
Tel. No.: |
91-22-66464200/
26704569/ 26704653/ 26794866/ 26705812/ 26788258/ 69/ 269433000/ 26784255/26788258 |
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Fax No.: |
91-22-66963514/
26784522 / 26783732 |
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E-Mail : |
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Website : |
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Factory : |
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Zonal Offices
: |
Opposite Vivek Cinema, New Delhi – 110 008 Tel. 91-11-25817628/39/40/41 Fax. 91-11-25817637 E-mail. xldelhi@exvelind.com
Navrangpur, Ahmedabad – 380 014, Gujarat Tel. 91-79-27543622/3623 Fax. 91-79-27544626 E-mail. xlhad@excelind.com
94, S. D. Road, Secunderabad – 500 003, Andhra Pradesh Tel. 91-40-27813273/5305/0899 Fax. 91-40-27841366 E-mail. ganesan@excelind.com
7th Floor, Flat No. 706, Kolkata – 700 020, West Bengal Tel. 91-33-24743403 Fax. 91-33-24743439 E-mail. excal@vsnl.net |
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Overseas
Offices : |
Located at :
Tel. 0032-3-5425722 Cell. 0032-477446298 Fax. 0032-3-2323735/2398269
Level 2, 333 George Street, Sydney NSW 2000, GPO Box 3293, Sydney NSW 2001, Australia
Singapore – 179098 Tel. +65-3360431 Fax. +65-3396291 |
DIRECTORS
|
Name : |
Mr. K C Shroff |
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Designation : |
Chairman |
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Name : |
Mr. G Narayana |
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Designation : |
Chairman |
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Qualification : |
Grad. Instn.of Engg. Grad. Instn. of Electronic and Radio Engg. (England) Diploma in Operations Management and Factory Management. |
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Date of Appointment : |
31.07.1999 |
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Name : |
Mr. A C Shroff |
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Designation : |
Chairman and
Managing Director |
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Date of Birth/Age : |
61 Years |
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Qualification : |
B.Sc. |
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Experience : |
41 Years |
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Date of Appointment : |
01.09.1965 |
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Name : |
Mrs. Usha A
Shroff |
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Designation : |
Vice Chairperson |
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Date of Birth/Age : |
28.03.1947 |
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Qualification : |
M. Com with Cost
Accounting |
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Date of Appointment : |
13.09.2000 |
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Other Directorships : |
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Name : |
Mr. S R Potdar |
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Designation : |
Executive
Director |
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Name : |
Mr. A D Mango |
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Designation : |
Director |
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Date of Birth/Age : |
24.11.1915 |
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Qualification : |
Bachelor of Philosophy |
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Date of Appointment : |
18.06.1964 |
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|
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Name : |
Mr. Aatul G
Shroff |
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Designation : |
Director |
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Date of Birth/Age : |
23.12.1947 |
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Qualification : |
SSC |
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Experience : |
Industrialist
with wide business experience |
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Date of Appointment : |
26.08.1994 |
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Other Directorships : |
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Memberships : |
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Name : |
Mr. R N Bhogale |
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Designation : |
Director |
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Name : |
Mr. H N Motiwalla
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Designation : |
Director |
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Date of Birth/Age : |
24.03.1945 |
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Qualification : |
Chartered
Accountant |
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Experience : |
Accounting,
Audit, Finance, Taxation, Company Law |
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Date of Appointment : |
24.05.2002 |
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Other Directorships : |
· Asian Electronics Limited · Enzymes Pharmaceuticals & Industrial Chemicals Limited · Ashok Alco Chem Limited · Ashok Organics Industries Limited · Lalit Polymers and Electronics Limited · Kadakia Alkalies & Chemicals Limited |
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Memberships : |
· Chairman of Audit Committee of Ashok Organics Industries Limited · Chairman of Audit Committee of Asian Electronics Limited |
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Name : |
Mr. P S Jhaveri |
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Designation : |
Director |
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Name : |
Mr. Dipesh K Shroff
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Designation : |
Director |
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Name : |
Mr. M K Vadgama |
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Designation : |
Director |
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Date of Birth/Age : |
22.10.1928 |
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Qualification : |
HNC in Mechanical
Engineering from United Kingdom, Chartered Engineer |
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Experience : |
Design of
Equipment for Chemical Plants and Project Management |
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Date of Appointment : |
28.01.1994 |
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Other Directorships : |
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Memberships : |
Member of Audit
Committee and Remuneration Committee of Ashok Organics Limited |
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|
Name : |
Mr. M B Parekh |
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Designation : |
Director |
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Name : |
Mr. V R Galkar |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Sunita
Agarwal |
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Designation : |
Company Secretary
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.06.2006
|
Category Code |
Category
of Shareholder |
Number
of shares held in dematerialized form |
Total
shareholding as a percentage of total number
of shares |
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As a percentage of (A+B) |
As a percentage of (A+B+C) |
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(A) |
SHAREHOLDING OF PROMOTERS AND GROUP |
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(1) |
Indian |
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(a) Individuals/ Hindu
Undivided Family |
308765 |
3.79 |
3.79 |
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(c ) Bodies
Corporate |
3164371 |
30.21 |
30.21 |
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Sub-Total (A)(1) |
3473136 |
34.33 |
34.33 |
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(2) |
Foreign |
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(a) Individuals
(Non- Resident Individuals/ Foreign individuals) |
95495 |
0.88 |
0.88 |
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Sub-Total(A)(2) |
95495 |
0.88 |
0.88 |
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Total Shareholding of Promoter
and Promoter Group A= (A)(1)+(A)(2) |
3568631 |
35.20 |
35.20 |
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Category Code |
Category
of Shareholder |
Number
of shares held in dematerialized form |
Total
shareholding as a percentage of total number
of shares |
||
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|
As a percentage of (A+B) |
As a percentage of (A+B+C) |
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(B) |
PUBLIC SHAREHOLDING |
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(a) Mutual Funds/
UTI |
825 |
0.01 |
0.01 |
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(b) Financial
Institutions/ Banks |
1016371 |
9.40 |
9.40 |
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(e) Insurance
Companies |
245441 |
2.25 |
2.25 |
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(d)Foreign
Institutional Investors/Foreign Banks |
399 |
0.02 |
0.02 |
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(h) Non-Resident
Shareholders |
52863 |
0.50 |
0.50 |
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Sub-Total (B)
(1) |
1262636 |
11.67 |
11.67 |
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(2) |
Non-Institutions |
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(a) Bodies
Corporate |
757020 |
7.17 |
7.17 |
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(b) Individuals - |
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i. Individual
Shareholders holding nominal Share Capital up to Rs.0.100 million. |
3743655 |
41.27 |
41.27 |
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ii. Individual
shareholders holding nominal share capital in excess
of Rs.0.100 million. |
429827 |
4.29 |
4.29 |
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Sub-Total(B)(2) |
4974440 |
53.12 |
53.12 |
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Total Public Shareholding B=(B)(1)+(B)(2) |
6237076 |
64.80 |
64.80 |
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TOTAL (A)+(B) |
9805707 |
100.00 |
100.00 |
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GRAND TOTAL (A)+(B)+( C) |
9805707 |
100.00 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of Phosphorous and its Compounds viz. Phosphorous White, Phosphorous
Pentasulphide, Phosphorous Trichloride, Dimethly / Dethyl Thio Phosphoryl
Chloride, Ortho Phosphoric Acid & its derivatives; Pesticides viz.
Aluminium Phosphide, Methoxy Ehtyl Mercury Chloride, Wettable Sulphur, Zinc
Phosphide, Endosulfan, Gluphosate, Chlorpyriphos Technical; Chemicals viz.
Mercury Salts, Sodium Penta Chloro Phenate, Pentachloro Phenol, Trichloro
Phenol, Butene Diol, Malathion Technical / Dethyl Oxalate, Acetyl Chloride
and Organics Manure. |
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Products : |
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Exports to : |
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PRODUCTION STATUS 31.03.2007
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Phosphorous and its Components |
Tonnes |
45700 |
33000 |
22917 |
|
Chemicals |
Tonnes |
9300 |
8300 |
7988 |
|
Organic Manure |
Tonnes |
31700 |
12000 |
8751 |
GENERAL
INFORMATION
|
No. of Employees : |
About 2708 |
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Bankers : |
·
Bank of
India, Mumbai ·
Syndicate
Bank, Mumbai ·
State Bank
of India ·
Axis Bank ·
CITI Bank
N.A. ·
ABN Amro
Bank N.V. ·
The Saraswat
Co-Operative Bank Limited |
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Facilities : |
Secured Loans (Rs. in millions)
Notes: 1. Debentures referred to in clauses 1(a) and 1(b) above are secured by a deed of hypothecation of all the movable properties, both present and future, situated at Roha and Lote Parashuram, and by a floating charge on all the other movable assets at the aforesaid sites. 2. Loans from Banks on Cash Credit and Working Capital Demand Loan Accounts are secured by hypothecation of all tangible movable assets, both present and future, including stock of raw materials, finished goods, goods-in-process, stores, book debts etc. and is secured by a second charge on the fixed assets at Roha and Lote Parashuram. 3. Term Loan from HDFC Bank Limited amounting to Rs. 2.500 Millions (Previous Year: Rs. 2.978 Millions) and from Kotak Mahindra Prime Limited Rs.0.770 Million, are secured by hypothecation of the vehicles acquired by utilizing the said loan. 4. Term Loans from Axis Bank Limited and Bank of India amounting to Rs.137.500 Millions (Previous Year: Rs. 187.500 Millions) and Rs.81.250 Millions (Previous Year: 100.000 Millions) respectively, are secured by a pari passu first charge on all movable fixed assets, both present and future, and is secured by a mortgage of immovable properties, both present and future, of its units situated at Roha and Lote Parshuram. 5. The aforesaid charges are exclusive of book debts and stocks which are charged in favour of the company bankers for securing borrowing for working capital requipments. 6. The aforesaid charges on the assets at Roha and Lote Parshuram shall rank pari passu inter-se amongst the debenture Axis Bank Limited and Bank of India. 7. All the above loans except Term Loan from HDFC Bank Limited amounting to Rs. 2.500 Millions (Previous Year: Rs. 2.978 Millions) Kotak Mahindra Prime Limited amounting to Rs.0.770 Million (Previous Year: Nil) Axis Bank Limited amounting to Rs.137.500 Millions ((Previous Year: 187.500 Millions) and Bank of India amounting to Rs.81.250 Millions (Previous Year: 100.000 Millions) respectively, are further secured by the company the corporate Guarantee given by Excel Crop Care Limited Unsecured Loans (Rs. in millions)
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Banking Relations : |
Satisfactory |
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Auditors : |
S V Ghatalia and
Associates Chartered
Accountants |
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Associates : |
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Subsidiaries : |
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Joint Ventures Companies: |
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CAPITAL STRUCTURE
Authorised
Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
38000000 |
Equity Shares |
Rs.5/- each |
Rs.190.000 millions |
|
850000 |
11% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.8.500 millions |
|
300000 |
Unclassified Shares |
Rs.5/- each |
Rs.1.500 millions |
|
|
|
|
|
|
|
Total |
|
Rs.200.000 millions |
Issued,
Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10905630 |
Equity Shares |
Rs.5/- each |
Rs.54.528 millions |
|
|
(of the above shares 98,10,710 shares have been allotted as fully paid
up by way of Bonus Shares by capitalisation of General Reserve) |
|
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Total |
|
Rs.54.528 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 |
54.528 |
54.500 |
54.500 |
|
|
2 Reserves & Surplus |
900.741 |
893.700 |
890.600 |
|
|
NETWORTH |
955.269 |
948.200 |
945.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
604.155 |
754.900 |
668.700 |
|
|
2] Unsecured Loans |
123.944 |
307.300 |
334.900 |
|
|
TOTAL BORROWING |
728.099 |
1062.200 |
1003.600 |
|
|
DEFERRED TAX LIABILITIES |
91.955 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1775.323 |
2010.400 |
1948.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
984.494 |
1035.000 |
1010.700 |
|
|
Capital work-in-progress |
56.333 |
11.000 |
53.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
122.995 |
149.000 |
149.600 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
329.725
|
417.300
|
454.200 |
|
|
Sundry Debtors |
608.404
|
583.300
|
599.100 |
|
|
Cash & Bank Balances |
27.459
|
41.200
|
39.900 |
|
|
Other Current Assets |
39.705
|
0.000
|
0.000 |
|
|
Loans & Advances |
126.339
|
426.900
|
375.500 |
|
Total Current Assets |
1131.632
|
1468.700
|
1468.700 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
472.172
|
611.200
|
727.400 |
|
|
Provisions |
47.959
|
42.100
|
6.300 |
|
Total Current Liabilities |
520.131
|
653.300
|
733.700 |
|
|
Net Current Assets |
611.501
|
815.400
|
735.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1775.323 |
2010.400 |
1948.700 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Sales Turnover |
2078.115 |
2329.900 |
2732.500 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Total Income |
2078.115 |
2329.900 |
2732.500 |
|
|
|
|
|
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
19.804 |
(28.100) |
(76.400) |
|
Provision for
Taxation |
6.624 |
(10.900) |
(68.500) |
|
Profit/(Loss)
After Tax |
13.180 |
(17.200) |
(7.900) |
|
|
|
|
|
|
Export Value |
517.103 |
407.440 |
333.849 |
|
|
|
|
|
|
Import Value |
311.101 |
445.606 |
766.880 |
|
|
|
|
|
|
Expenditures : |
|
|
|
|
Manufacturing Expenses |
1872.061 |
0.000 |
0.000 |
|
Depreciation |
92.706 |
0.000 |
0.000 |
|
Interest |
93.544 |
0.000 |
0000 |
|
Other Expenses |
0.000 |
2358.000 |
2808.900 |
|
Total Expenditure |
2058.311 |
2358.000 |
2808.900 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 (1st Quarter) |
30.09.2007 (2nd Quarter) |
31.12.2007 (3rd Quarter) |
|
|
|
|
|
|
Sales Turnover |
523.300 |
591.700 |
601.200 |
|
Other Income |
9.800 |
13.700 |
14.200 |
|
Total Income |
533.100 |
605.400 |
615.400 |
|
Total Expenditure |
468.500 |
536.500 |
548.200 |
|
Operating Profit |
64.600 |
68.900 |
67.200 |
|
Interest |
25.700 |
26.200 |
25.100 |
|
Gross Profit |
38.900 |
42.700 |
42.100 |
|
Depreciation |
22.500 |
23.800 |
24.800 |
|
Tax |
0.500 |
0.800 |
0.600 |
|
Reported PAT |
9.400 |
15.100 |
13.500 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.94 |
1.09 |
1.07 |
|
Long Term Debt
Equity Ratio |
0.38 |
0.48 |
0.53 |
|
Current Ratio |
1.11 |
1.15 |
1.09 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.14 |
1.20 |
1.36 |
|
Inventory |
5.83 |
5.09 |
6.98 |
|
Debtors |
3.65 |
3.75 |
4.68 |
|
Interest Cover
Ratio |
0.89 |
0.73 |
0.40 |
|
Operating Profit
Margin (%) |
8.00 |
7.67 |
5.32 |
|
Profit Before
Interest and Tax Margin (%) |
3.83 |
3.49 |
1.55 |
|
Cash Profit
Margin (%) |
3.64 |
3.40 |
4.25 |
|
Adjusted Net
Profit Margin (%) |
(0.53) |
(0.78) |
0.48 |
|
Return on Capital
Employed (%) |
4.51 |
3.91 |
2.04 |
|
Return on Net Worth
(%) |
(1.22) |
(1.82) |
1.24 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject was
originally incorporated as a partnership firm in 1941 and became public in
1965. Promoted by the Shroff family the
promoters increased their stake further by acquiring 19% stake from Tatas in
1996-97. The Tatas originally acquired stake in Excel Industries in 1964 with
the company. Currently Shroffs and group companies with 33% shareholders of the
company are FIs who hold 33%. The company entered into joint venture with the
company in Israel for making drip irrigation systems.
Even though the
Tata Group acquired a financial interest in this company Excel Industries
continue to be managed by members of the Shroff family. To bring more focus on
each business line of activity the company has restructured its business under
four divisions i.e Agri Business, Chemicals Business, Environ and Biotech
Business and Life Sciences Business supported by appropriate corporate
functions in FY 1999-2000.
The company further commissioned the plant for manufacture of Celrich at
Ahmedabad having a treatement capacity of 500 MT of waste per day during
1999-2000.
During 2000-2001, the company successfully commissioned the plant to
manufacture special purpose Polymer Additive having a capacity of 200 tonnes
per annum and also carried out substantial expansion of production capacity of
Phosphonates from 5000 tonnes per annum to 7000 tonnes per annum at its Lote
Parshuram Unit.
The company has also launched 3 new formulations under the brand name of
Celcron, Hexzol and Bipex. The Chemicals Business division has successfully
commissioned 2 plants viz 200 TPA mining chemicals plant and 200 TPA to
manufacture speciality chemicals.
Erstwhile Agri Business :
The company received the ISO 9002 certification for its Bhavnagar unit in 1995,
becoming the first Indian agro-chemical company to achieve this distinction. It
made a beginning in new businesses like micro-irrigation systems, seeds, etc,
through a combination of marketing and manufacturing efforts. The plant to
produce butenediol, one of the major raw materials needed for the production of
endosulfan, was expanded in 1994-95.
The company also successfully converted the Endosulfan Plant at Bhavnagar
enabling consumption of non Ozone Depleting solvent in place of Ozone Depleting
Solvent, as required under the Montreal Protocol.
During 2001-02 the
Agribusiness division has expanded its manufacturing capacity of
Organophosphorous Compounds at this division.
With effect from October, 2001 Waman Industrial Chemicals Limited a company
with production of Phsophorous Pentasulphie was amalgamated with company.
Milestone
1968 12,500
Bonus Equity Shares in the prop. 1:2.
1970 7,500
Bonus shares issued in prop. 1:5 shares then subdivided. In March 1971,
5,00,000 shares issued at par : 34,500 shares reserved for working directors
and staff and 4,65,500 shares offered to the public.
1975 Plans
at the Roha Works were commissioned in June. 7,60,000 Bonus shares issued in
prop. 4:5.
1976 The
pilot plant for the manufacture of endosulfan was commissioned. A plant was put
up for the manufacture of aluminium chloride
1977 8,55,000 Bonus shares issued in
prop. 1:2.
1978 The
company concluded two more agreements for supply of technical know-how and
engineering services for the manufacture of malathion with FICOM Organics
Limited and Khatau Jhunker Limited.
1983 20,52,000 Bonus shares issued
in prop. 4:5.
1985 A plant was installed to
manufacture glyphosate, a weedicide.
1986 The
butene-diol plant with 600 TPA capacity was commissioned with an inbuilt
facility for generation of acetylene gas.
It was proposed to set up a 16,000 TPA plant for the recovery of
high-alumina refractory grade cement from the company’s phosphorous operations.
1989 Upexcel
Limited was formed as a joint sector company with Pradeshiya Industrial &
Investment Corporation of Uttar Pradesh for the manufacture of phosphorous and
its derivatives.
1990 The
company issued 4,00,000 – 14% secured non-convertible debentures of Rs. 100 each on private placement basis aggregating
to Rs. 40000 millions to Unit Trust of India (Rs. 2000 millions), Life
Insurance Corporation (Rs. 10 millions) and GIC and its subsidiary (Rs. 10
millions). These were to be redeemed at a premium of 5% on the expiry of 7
years from the date of allotment i.e. on 25th May, 1996.
1991 The
Project financing proposal was approved by financial institutions.
West Coast Oxygen Limited and Kamaljyot Investments Limited are wholly
owned subsidiaries of the company. During the year, the company has
incorporated a wholly owned subsidiary under the name “Excel Industries
(Australia) Pty Limited, in Australia.
The company issued 6,00,000 – 18% secured redeemable non-convertible
debentures of Rs. 100 each on private placement basis to financial
institutions. These are redeemable in three equal annual instalments commencing
on the expiry of 6 years from the date of allotment i.e. from 27th
March, 1998 at a premium of Rs. 5 per debenture payable on the expiry of the 7th
year from the date of allotment.
During the year, the company issued 2,00,000-14% secured redeemable
non-convertible debentures of Rs. 100 each on private placement basis with Unit
Trust of India. These are redeemable in three equal annual instalments commencing
on the expiry of 6 years from the date of allotment from 26th
September, 1997 at a premium of Rs. 5 per debenture payable on the expiry of 7th
year from the date of allotment of debentures.
1992 The
company issued 4,00,000-18% secured redeemable non-convertible debentures of
Rs. 100 each on private placement basis with Unit Trust of India. These are
redeemable in three equal annual instalments commencing on the expiry of 6
years from the date of allotment i.e. from 26th March,
1999.23,08,500 Bonus shares issued
in prop. 1:2.
1993 Facility
for manufacture of 600 TPA of acetyl chloride was commissioned. In addition
steps were taken to expand the capacity of water treatment chemicals at its
Lote unit and to provide captive production of phosphorous trichloride for the
same.
During April, the company offered 3,50,000 Numbers of equity shares of
Rs. 10 each at a premium of Rs. 52.50 per share to its permanent employees’ (as
on 1st July, 1992), of the company both in appreciation of their
services and as a part of their Golden Jubilee Celebration.
344920 shares issued on preferential basis
to employees.
1994 The
company entered into new business like micro-irrigation systems, seeds,
biofertilizers etc. through a combination of marketing and manufacturing
efforts. The company also started offering technology in tackling the
ever-mounting menace of waste in cities and town.
The capacity of the plant to product butene Diol was expanded. The
company also undertook to further modernise its major plants to improve the
operational performance.
1995 The
company commissioned a windfarm project at Rajasthan with an installed capacity
of 2.7 MW.
3635210 bonus equity shares issued in prop.
1:2
1996 The
company had carried out expansion of production capacity of yellow phosphorous
at Bhavnagar unit and Glyphosate at Roha unit.
1997 The
company has commissioned a new pesticide formulation unit at Silvassa in the
Union Territory of Dadra & Nagar Haveli to manufacture Glycel 41% SL and
exports to add facilities in future to manufacture other formulations.
The company is setting up a joint venture (JV) with Netafim of Israel to
manufacture irrigation equipment in India.
The company is a leader in industrial and specialty chemicals,
agro-chemicals and bio-fertilizers and holds a major market share in endosulfan
and glyphosate pesticides. The company had developed expertise in organic soil
enrichers, drip irrigation system and pest control products.
The Credit Rating Information Services of India Limited (Crisil) has rated
Rs. 400 million non-convertible debenture of Excel Industries Limited as ‘AA-‘
indicating high safety with regard to timely payment of interest and principal.
1998 ISRAEL’S
netfim, a US$ 200 million turnover micro irrigation company, has entered into a
joint venture with the company, the Mumbai-based manufacturer and exporter of
agri-chemicals and Jalbindu Agritech Private Limited an Umargaon-based
manufacturer of drip irrigation systems.
The company, pioneers in recycling wastes into fertilisers, plan to
expand business worldwide particularly in Asia and the Pacific region.
It has commissioned a pilot plant for herbal extraction at its
production site at Lote Parashuram.
It is one of the major domestic players in the pesticide industry and is
also one of the leading exporters of technical and formulations.
It is also the first company in Asia and third in the world, to make
endosulfan technical and first in Asia to make butene diol - a major intermediate of endosulphan. It is
second in the world to develop glyphosate technical. The company remains a
domestic leader in terms of capacities, marketing and distribution network and
has good brand in its portfolio.
1999 The
company is the largest domestic manufacturer of endosulfan, a broad spectrum
pesticide, used predominantly in cotton crop, but also finds use in oil seed,
pulses and plantations.
The company has entered into a co-marketing arrangement with Danish
multinational Cheminova for its glyphosate-based formulation, a systemic
weedicide.
2002 The
company has informed that a major fire broke out in one of the two main
buildings of the corporate and registered office of the company on March 22,
2002.The fire resulted in extensive damage to and destruction of building,
office equipments, furniture and fittings, EDP & IT Systems including
hardware and data storage devices, communication systems and records.
The company has informed that Mr M K Vadgama has resigned from the Board
of Directors of the Company.
The company has informed that Mr A N Poddar, Director of the Company has
expired on December 05, 2002.
2003 Mr. Dipesh K Shah resigns as
Joint Managing Director of the company.
The Company has signed a Memorandum of Understanding for sale of its
plot of land at Amboli, for a consideration of Rs 175 million
MANAGEMENT DISCUSSION AND
ANALYSIS:
BUSINESS REVIEW:
Business Segment - Chemicals Business Division:
(a) Industry structure and development:
The Intermediates manufacturing industry continues to grow in terms of its volumes
and the market reach it is able to establish. Global companies continue their
efforts to source more and more of their requirements of intermediates from
China and India and thus the Indian industry does get numerous new
opportunities. However, the pressure on the finished product pricing is fully
transferred to the intermediates whereas the industry has had to contend with
increasing costs of raw materials on which it has no control and also ever
increasing cost of energy. The global market witnessed a run away increase in
prices of some of the basic raw materials derived out of Crude oil and record
prices of crude impacted the costs of energy required for processing. Thus the
industry has to contend with steadily declining margins.
Generally, the Agrochemical industry had a second poor year
in succession and the Pharma industry also witnessed an unexciting year. The
polymer industry produced good volumes thus supporting demands for Company's
products in this segment.
The import duties were further reduced to 12.5% thus increasing the price
pressure and adding to the woes of the industry against the imports,
particularly from China. The Indian Rupee was fairly stable through the year
providing stable export realization except during the last few weeks of the
year.
(b)
Opportunities and threats:
The success of large Indian companies in the fields of polymers and paints can
generate sustained demand for the Company's products as specialty intermediates
and biocides. The improved logistics in the country's major ports has helped
the Company to improve its timely delivery image and the Company now views for
improving its share in the overseas customers' business. Several basic raw
materials and energy were more expensive on account of Crude Oil price but the
prices of White Phosphorous were stable and favourable this year compared to
previous two to three years. The shortage of electrical power in the state of
Maharashtra and the imminent price is likely to impact the cost of
production.
(c) Segmentwise performance and
outlook:
The focused approach by the Company to grow in the export market has
started giving results and the exports have grown by about 25% from Rs.430.000
Millions in 2005-06 to Rs.530.000 Millions in 2006-07. The Company, through
stretched efforts was able to meet sudden increase in the requirement of the
herbicide for export efforts of the customer. The Company was also able to
secure the orders for supply of a new monomer for export. Domestic supply of
Codex range of products and of Acetyl Chloride also grew quite well.
Thus despite the reduction in the volumes of Agro
intermediates, the Company was able to maintain the turnover and the redeeming
feature is of improved profitability generated from changed product mix. The
outlook is also encouraging with projected Increase in the volumes of Specialty
Chemicals and also of exports.
Certain high value pharmaceutical intermediates under development currently may
be sold regularly from the pilot plant in the Company. The division management
is working on presenting an improved performance for the 2007-08.
(d)
Risks and concerns:
The year has started with a sharp Increase in the rates of interest resulting
from Reserve Bank of India's efforts to control inflation. The Government
further reduced the Import duties in January 2007 and then again in the Union
Budget 2007 reducing the gap between the import duties imposed on raw materials
and on processed Intermediates. The strengthening of the Indian Rupee towards
the end of last financial year will weaken the gains of export efforts. There
is an early perception of a slow down in the US economy which may affect our
exports to that region.
Business
Segment - Environment & Biotech Division:
(a) Industry Structure:
This division operates in two major areas i.e., Agri inputs and Environmental
Health and Hygiene, in the agri-input segment this division offers products for
soil health, plant growth and plant protection, Untimely rains have affected
sale of all the products across the country.
Sanitization products meant for odour and pathogen control was extensively used
by Gujarat Government in the flood affected areas of Surat.
(b) Opportunities, threats, risks
and concerns:
Ministry of Agriculture has brought City Compost under Fertilizer Control Act.
This will enable organized sector like ours who offer quality products to have
a better market share. The Organic Waste Converter (OWC) developed by the
Company is gaining popularity with the Housing Societies not only In Mumbai but
also in Bangalore. There appears to be a promising future for this
machine.
(c) Segment wise performance and
outlook:
During 2006-07, efforts were made to streamline marketing operations.
Non-profitable areas were closed down to reduce fixed costs and improve
profitability. With a view to optimize cost of marketing of agri inputs and to
harness marketing synergies, the Company has decided to transfer marketing of
agri-inputs to M/s Excel Crop Care Limited who have a well knit marketing
network dealing in chemical agri-inputs. Excel Industries Limited will continue
to produce Soil Enricher which will be marketed by Excel Crop Care Limited.
Production at the City Compost Project at Vijayawada has been shut down and the
Company is discussing with the local Government Authorities regarding the
future of the plant.
Financial
performance and analysis:
During the year under review, the net sales achieved were Rs.1844.400
Millions as compared to Rs.1932.900 Millions in the previous year registering a
decline of 4.58%. The exports of the Company which were at Rs.424.300 Millions
in the previous year are Rs.528.300 Millions in the current year showing a
substantial growth of 25% over previous year.
Notes on Accountant:
As on 31.03.2007 Rs.
In Millions
|
Contingent Liabilities |
|
|
Bills Discounted |
37.909 |
|
Disputed income tax liability (including interests) in respect of earlier years |
107.106 |
|
Disputed excise-duty liability |
5.776 |
|
Disputed services tax liability |
1.604 |
|
Disputed sales-tax liability |
19.833 |
|
Disputed water charges |
1.588 |
|
Guarantee given by company Bankers on behalf of the company to third parties |
1.110 |
|
Guarantee given by the company in respect of loans transferred to Excel Crop Care Limited (ECCL) under the scheme of arrangement between the company and ECCL Of the above guarantee given, the amount outstanding as at 31st March |
896.025 282.485 |
|
Claim against the company not acknowledged as debts Liability in respect of claim made by workers and contract laborers |
1.346 - |
|
Estimated amount to contract remaining to be executed on capital account and not provided |
10.068 |
The company is in trade terms with:
- Aditya Chemicals
- Aryan Paper Containers
- Autocom Engineering
- Dimple Drums and Barrels Limited
- Frezco Corporation
- Hindcomp Private Limited
- Industrial Processors
- Mullackal Polymers
- NAV Gases and Chemicals
- Shreeji Metal Works
- Unitop Chemicals Private Limited
Fixed Assets
- Freehold and Leasehold land
- Buildings
- Plant and Machinery
- Date processing equipments
- Electrical installations
- Laboratory equipments
- Furniture and fixtures
- Office equipments,
- Trade marks
- Vehicles
- Technical books.
Profile
Subject has come a long way since its origin in a kitchen laboratory in 1941.
Over the years, subject came to be known as an industry leader in the area of
agro-chemicals and agro chemical intermediates. Using its expertise in
Chemistry and Chemical technology, subject also expanded its chemicals
manufacturing range to include Water treatment chemicals and Polymer Additives
and few other specialty chemicals.
Subject’s commitment to sustainable development led to venture into the field
of Environment and Bio-technology. Subject is a Pioneer and Technology leader
in rapid conversion of Municipal Solid Waste to organic compost. Their organic
plant protection and soil/crop productivity enhancers are well accepted in the
market.
In order to ensure focused attention to the expanded range of activities, the
agro business division was spun off as a separate company, Subject Crop Care
Limited in 2003. Today, Subject is organized into three divisions i.e. a.
Chemicals, b. Pharmaceuticals and c. Environment and Biotech.
Ever since their inception, they have built up a solid history and reputation
of developing, manufacturing and exporting chemicals. They have achieved over
100 product and process breakthroughs that even now are serving the specific
needs of various clients.
They have excellent research facilities in Mumbai and at their manufacturing
locations. During the last six decades, they have received numerous awards in
recognition of their dedication and excellence in the field of chemicals. From
the very beginning, in 1941, when their founder Mr. C. C. Shroff established
subject,
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.39.81 |
|
UK Pound |
1 |
Rs.78.94 |
|
Euro |
1 |
Rs.60.12 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|