MIRA INFORM REPORT
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Report Date : |
17.01.2008 |
IDENTIFICATION DETAILS
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Name : |
SI
GROUP INDIA LIMITED |
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Formerly Known As : |
SCHENECTADY
HERDILLIA LIMITED |
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Registered Office : |
Plot No.
2/1, TTC Industrial Area, Thane Belapur Road, Navi
Mumbai – 400073, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
01.07.1963 |
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Com. Reg. No.: |
11-12674 |
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CIN No.: [Company Identification
No.] |
L99999MH1963PLC012674 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS04774A |
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PAN No.: [Permanent Account No.] |
AAACH7323L |
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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 : |
Manufacturer of Heavy Organic Chemicals. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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
5375000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed company having satisfactory track. Directors
are reported as experienced and respectable businessmen. Trade relations are
fair. Business is active. Payments are usually correct and as per
commitments. The company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Navi Mumbai Unit : |
Plot
No. 2/1, TTC Industrial Area, Thane Belapur Road, Navi
Mumbai – 400073, Maharashtra, India |
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Tel. No.: |
91-22-27681153
/ 27672038 / 27611901 / 27681154 / 27683328 |
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Fax No.: |
91-22-27671848
/ 27685653 / 27682589 |
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E-Mail : |
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Website: |
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Corporate
Office : |
Air
India Building, Nariman Point, Mumbai – 400021, Maharashtra, India |
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Tel.
No.: |
91-22-22024224 |
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Fax
No.: |
91-22-22042379/
22880942 |
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E-Mail
: |
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Website : |
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Import
/ Export Department: |
Post
Office Box 27, Thane Belapur Road, Navi Mumbai – 400703, India |
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Tel.
No.: |
91-22-27683328
/ 27681153 / 27681154 |
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Fax
No.: |
91-22-27611508 91-22-27671848
/ 27685653 |
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E-Mail
: |
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Website : |
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Rasal Unit : |
Village
Rasal, Post Office Pali, Taluka Sudhagad, District
Raigad – 410205, Maharashtra, India |
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Tel No.: |
91-2142-242669/
242670 |
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Fax No.: |
91-2142-242668 |
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E-Mail : |
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Website : |
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Lote Unit : |
Plot
No D-1/3, MIDC,Lote Parshuram, Taluka – Khed, District
– Ratnagiri – 415722, Maharashtra, India |
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Tel No.: |
91-2356-272246
/ 272129 |
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Fax No.: |
91-2356-272006
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. D
Paul Tilley |
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Designation : |
Chairman
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Name : |
Mr. R
M Pandia |
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Designation : |
Vice Chairman
and Managing Director |
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Name : |
Mr.
Richard Barlow |
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Designation : |
Director
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Name : |
Mr. B
V Bhargava |
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Designation : |
Director
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Name : |
Mr. B
Chakrabarti |
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Designation : |
Director
– Nominee of GIC |
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Name : |
Mr. P
N Ghatalia |
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Designation : |
Director
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Name : |
Mr. A
Malcolm MacCormick |
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Designation : |
Director
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Name : |
Mr. R
V Nagarkar |
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Designation : |
Director
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Name : |
Mr.
Suresh N Talwar |
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Designation : |
Alternate
Director to Mr. Malcolm MacCormick |
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Name : |
Ms.
Heather Ward |
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Designation : |
Director
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Name : |
Mr. G
C Vasudeo |
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Designation : |
Director - Finance and Alternate Director to Ms.
Heather Ward |
KEY EXECUTIVES
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Name
: |
Mr K
Shankar |
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Designation
: |
Executive
Vice President – Marketing |
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Name
: |
Mr. A
P Potkar |
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Designation
: |
Vice
President – Manufacturing |
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Name
: |
Mr D B
Satam |
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Designation
: |
Vice
President – Human Resources |
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Name
: |
Mr P S
Kumbhar |
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Designation
: |
Vice
President – Research and Process Development |
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Name
: |
Mr. S
Y Deshpande |
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Designation
: |
Vice
President – Manufacturing |
MAJOR SHAREHOLDERS / SHAREHOLDING
PATTERN
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters
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35203357 |
83.21 |
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Mutual
Funds and UTI |
6200 |
0.01 |
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Banks
and Financial Institutions |
1082388 |
2.56 |
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Private
Corporate Bodies |
698861 |
1.65 |
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Indian
Public |
5265116 |
12.45 |
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NRI’s
/ OCB’s and Other Foreign Nationals |
35952 |
0.08 |
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In
transit / Clearing Members |
14376 |
0.03 |
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Total |
42306250 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Heavy Organic Chemicals |
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Products with ITC Codes : |
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Exports
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Products : |
Diacetone Alcohol, Nonyl Phenol, Dodecyl Phenol, Para Cumyl Phenol, Para Octyl Phenol, Diphenyl Oxide, Isophorone, Hexylene Glycol
Acetophenone, Iso Butyl Benzene, Hersol, Alpha Methyl Styrene, Unsaturated Dimers of Alpha Methyl Strene, Pthalic Anhydride, Iso
Butyl Benzene |
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Countries : |
China, Dubai (UAE), Hongkong, Indonesia, Japan, South
Korea, Malaysia, Philippines, Saudi Arabia, Singapore, Thailand, Taiwan,
Finland, Germany, Netherlands, Russia, Switzerland, United Kingdom, Nigeria,
South Africa, Chile, Venezuela, Australia, USA |
PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Basic Chemical |
MT |
|
81300 |
58267 |
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Industrial Solvents |
MT |
|
33360 |
31602 |
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Performance Resins |
MT |
|
4000 |
4245 |
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Others |
MT |
|
69470 |
38039 |
GENERAL INFORMATION
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No. of Employees : |
About
668 |
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Bankers : |
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Facilities : |
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Auditors : |
BSR
and Company (formerly Bharat S Raut and Company) Chartered
Accountants |
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Subsidiaries : |
*
SI Group-UK, Limited *
SI Group-Canada, Limited *
Yuka-Schenectady Company, Limited *
SI Group-Brasil Resinas Limited *
SI Group-Crios Resinas Limited *
SI Group-Ribecourt SAS *
SI Group-Bethune SAS *
SI Group-Switzerland, GMBH *
SI Group-South Africa (Proprietary) Limited *
SI Group-Australia Pty., Limited *
SI Group (Shanghai) Company Limited *
SI Group (Shanghai) Trading, Limited *
Schenectady Korea Limited *
SI Group-Singapore Pte. Limited *
SI Group-Energy, LLC *
Schenectady Mexico Limited *
Schenectady International Group, Inc. *
Schenectady Luxembourg Sari *
Schenectady Asia Pacific Holding Inc. *
(20) Schenectady Aircraft, LLC |
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Holding Company : |
> Schenectady (India)
Holdings Private Limited |
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Ultimate Holding Company: |
> SI Group, Inc. |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
60,000,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 600.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
42,306,250 |
Equity
Shares |
Rs. 10/- each |
Rs. 423.063 Millions |
Notes
Of the above
(1) 2,450,000 (2005-06 — 2,450,000) equity shares of Rs. 10 each were
allotted as fully paid-up by way of bonus shares by capitalisation of reserves.
(2) 3,675,000 (2005-06 — 3,675,000) equity shares were issued by way of
Rights shares in the ratio of 1:2 at a premium of Rs. 5 per share and
18,131,250 (2005-06 — 18,131,250) equity shares were issued by way of Rights
shares in the ratio of 3:4 at a premium of Rs. 18 per share.
(3) 1,150,000 (2005-06 — 1,150,000) fully paid-up equity shares were issued
to the shareholders of the erstwhile Schenectady Specialities Asia (P)
Limited('SSAPL') upon merger in the ratio of 1:10 (Face Value Rs. 10 each).
(4) 35,203,357 (2005-06 — 35,203,357) fully paid-up equity shares are
held by Schenectady (India) Holdings Private Limited — the Holding company, and
its nominees.
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
423.063 |
423.063 |
423.063 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
920.557 |
920.149 |
804.503 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1343.620 |
1343.212 |
1227.566 |
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LOAN FUNDS |
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|
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|
1] Secured Loans |
957.617 |
761.271 |
170.975 |
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2] Unsecured Loans |
1099.295 |
646.198 |
1098.115 |
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TOTAL BORROWING |
2056.912 |
1407.469 |
1269.090 |
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DEFERRED TAX LIABILITIES |
134.320 |
166.665 |
228.465 |
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TOTAL |
3534.852 |
2917.343 |
2725.121 |
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APPLICATION
OF FUNDS |
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FIXED
ASSETS [Net Block] |
1538.584 |
1338.031 |
1135.693 |
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Capital
work-in-progress |
129.114 |
109.298 |
205.957 |
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INVESTMENT |
10.794 |
10.867 |
11.367 |
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DEFERREX
TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT
ASSETS, LOANS & ADVANCES |
|
|
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|
Inventories |
1490.996 |
1152.688
|
1257.078 |
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Sundry
Debtors |
1155.738 |
938.366
|
1127.650 |
|
Cash
& Bank Balances |
8.964 |
127.364
|
28.725 |
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Other
Current Assets |
0.000 |
0.000
|
0.000 |
|
Loans
& Advances |
462.436 |
453.031
|
289.014 |
|
Total Current
Assets |
3118.134 |
2671.449
|
2702.467 |
|
Less : CURRENT LIABILITIES &
PROVISIONS |
|
|
|
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Current
Liabilities |
1172.314 |
1183.270
|
1307.912 |
|
Provisions |
89.460 |
29.029
|
22.451 |
|
Total Current
Liabilities |
1261.774 |
1212.299
|
1330.363 |
|
Net Current Assets |
1856.360 |
1459.150
|
1372.104 |
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MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3534.852 |
2917.346 |
2725.121 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Sales
Turnover |
6073.417 |
5168.183 |
7170.756 |
|
Other Income |
54.082 |
539.768 |
0.000 |
|
Total
Income |
6127.499 |
5707.951 |
7170.756 |
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|
|
Profit/(Loss) Before Tax |
(24.334) |
68.598 |
317.024 |
|
Provision for Taxation |
23.310 |
(50.815) |
120.479 |
|
Profit/(Loss) After Tax |
1.024 |
119.413 |
196.545 |
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Export Value |
1236.946 |
1028.572 |
1276.985 |
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Import Value |
2855.452 |
2527.914 |
3238.490 |
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Expenditure |
|
|
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|
Pacing Materials Consumed |
79.200 |
93.134 |
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Raw Material Consumed |
4325.495 |
3910.269 |
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|
Purchases of traded goods |
140.707 |
139.885 |
|
|
Increase/(Decrease) in Finished Goods |
(123.949) |
59.114 |
6855.178 |
|
Salaries, Wages, Bonus, etc. |
307.632 |
292.592 |
|
|
Interest |
142.897 |
56.540 |
|
|
Depreciation & Amortization |
131.751 |
108.636 |
|
|
Other Expenditure |
5570.169 |
980.183 |
|
|
Total
Expenditure |
6152.449 |
5640.353 |
6855.178 |
QUARTERLY RESULTS
|
PARTICULARS |
|
30.09.2007 2nd Quarter |
30.06.2007 1st Quarter |
|
Sales Turnover |
|
1536.500 |
1724.000 |
|
Other Income |
|
15.800 |
30.700 |
|
Total Income |
|
1552.300 |
1754.700 |
|
Total
Expenditure |
|
1463.200 |
1557.000 |
|
Operating
Profit |
|
89.100 |
197.700 |
|
Interest |
|
41.400 |
51.600 |
|
Gross Profit |
|
47.700 |
146.100 |
|
Depreciation |
|
36.000 |
37.700 |
|
Tax |
|
2.100 |
13.300 |
|
Reported PAT |
|
9.600 |
54.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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|
|
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|
|
|
Debt-Equity
Ratio |
|
1.29 |
1.05 |
1.50 |
|
Long Term
Debt-Equity Ratio |
|
0.57 |
0.36 |
0.23 |
|
Current
Ratio |
|
1.22 |
1.14 |
0.89 |
|
TURNOVER
RATIOS |
|
|
|
|
|
Fixed
Assets |
|
2.60 |
2.51 |
3.00 |
|
Inventory |
|
5.21 |
4.86 |
6.88 |
|
Debtors |
|
6.57 |
5.66 |
7.33 |
|
Interest
Cover Ratio |
|
0.81 |
(1.72) |
3.70 |
|
Operating
Profit Margin(%) |
|
3.70 |
(0.86) |
6.96 |
|
Profit
Before Interest And Tax Margin(%) |
|
1.80 |
(2.70) |
5.39 |
|
Cash
Profit Margin(%) |
|
1.86 |
(1.45) |
4.01 |
|
Adjusted
Net Profit Margin(%) |
|
(0.05) |
(3.28) |
2.44 |
|
Return
On Capital Employed(%) |
|
4.02 |
(6.04) |
16.07 |
|
Return
On Net Worth(%) |
|
(0.25) |
(15.02) |
18.15 |
LOCAL AGENCY FURTHER INFORMATION
Promoted
in 1965 by EID-Parry (India),Chennai, in collaboration with Distillers Company,
UK, and Hercules Power, US, Schenectady Herdillia (SHL) was earlier known as
Herdillia Chemicals. It manufactures heavy organic chemicals such as phenol,
cumene, acetone, diacetone alcohol, phthalic anhydride, phthalates and their
derivatives. In Mar.'65, SHL entered into an agreement with Distillers Company
to supply technical information for manufacturing phenol, cumene, diacetone
alcohol and phthalates.
In 1984, the interests of EID-Parry were taken over by Duncans Agro
Industries and it is now a part of the Goenka-Duncan group. In 1994, SHL
entered into a strategic alliance with Bayer, Germany, for setting up a
facility to produce heat transfer media. The heat transfer media plant was
commissioned in Feb.'94. The isophorone plant was commissioned in Apr.'94. The
company expanded phenol capacity from 20000 tpa to 22500 tpa in a phased
manner.
In 1994-95, SHL increased the capacity for IBB from 1000 tpa to 2000 tpa.
It received the ISO 9002 certification from BVQI in Dec.'95.
During 1995-96, SHL increased the capacity for DPO, phenol and acetone to
3000 tpa, 24000 tpa and 14400 tpa respectively. HCL has set up a greenfield
plant to produce 1 lac tpa of phenol and 60000 tpa of acetone at Dahej,
Gujarat.
SHL further increased the capacities of the Phenol, Acetone, Iso Butyl
Benzene and Isophorone plant to 26,500, 16,170, 2,500 and 2,500 MT in the year
96-97. It has set up a captive cogeneration plant. The capacity of Phenol and
Acetone plants was increased to 34,000 and 20,400 MT/year respectively in the
year 1999-2000.
The company was renamed Schenectady Herdillia consequent to acquistion of
81.19% of equity capital by Schenectady (India) Holdings Ltd during April 2002.
Consequent to the approval by Hon'ble Bombay High Court, Schenectady
Specialities Asia Private Ltd was merged with the company with effect from
28th Noember,2002 and the appointed date was 27th September,2002
OPERATIONS REVIEW:
The sales turnover at Rs. 6880 millions was higher by 18% compared to the
previous year. The increase in turnover was mainly due to the improved
performance of the Company in the domestic and export markets.
CHANGE OF NAME:
Having received the requisite approvals, the name of Company was changed from
Schenectady Herdillia Limited to SI Group - India Limited with effect from
September 13, 2006.
PRODUCTION:
Total production during the year ended March 31, 2007 at the Navi Mumbai
unit was 1,10,014 MT, being higher by 12% compared to 97,649 MT during the
previous year.
New annual production records were established in respect of Diacetone Alcohol,
Isobutyl Benzene and Isophorone.
In the year, the Cumene Zeolite project was successfully completed in
the month of January, 2007. This project has made the Company self sufficient
in its requirement of Cumene, which is the intermediate for Phenol and
Acetone.
Production at the Rasal unit was 17,894 MT as against 19,421 MT during the
previous year, a decrease of 8%. This was partly due to severe competition in
Asian markets for Nonyl Phenol.
The Solid Fuel Hot Oil unit and Cogeneration plants were commissioned during
the year. These will reduce energy costs and result in improving the
performance of the unit.
The Lote unit continued its encouraging performance and the volumes showed an
upward trend from 2,576 MT to 4,245 MT production, an increase of 65%.
The combined production at the Navi Mumbai, Rasal and Lote units was 1,32,153
MT as against 1,19,646 MT in the previous year, recording an increase of
10%.
SALES AND EXPORTS:
During a major part of the year under review, prices of the Company's commodity
products continued to be depressed on account of new large capacities which
came up in Asia. With high prices of raw materials, driven by high crude oil
prices, profitability was under severe pressure.
During the year, exports were at Rs. 1210 millions FOB, as against Rs. 1000
millions during 2005-2006.
FINANCE:
The Company did not accept any fresh deposits or renew any existing deposits
from the public or shareholders during the year. As of March 31, 2007, 47
deposits aggregating Rs. 0.687 millions had matured for payment but not been
claimed by the depositors.
The following products of the Company, viz. Phenol Acetone, Diacetone Alcohol
and Performance Resins, come under the purview of Cost Accounting Records
(Chemical Industries), Rules, 1987. However, cost audit in respect of only
Acetone, Diacetone Alcohol and Performance Resins is applicable to the year
under reference. The Company has maintained relevant records and the cost audit
is in progress.
In respect of capitalization of the Para Tertiary Butyl Phenol (PTBP) Project
during the previous Accounting Year, the Company is not in agreement with the
view of the Auditors. The Company believes that the Capital Work-In-Progress
taken over from Schenectady Specialities Asia Private Limited (since merged with
the Company), amounting to Rs. 99 millions is valuable to the Company in the
PTBP Project. Accordingly, and also based on expert opinion, the said amount
was capitalized in the books of the Company without any adjustments as per the
Scheme of Amalgamation approved by the Hon. Bombay High Court in the year
2002.
The Company has initiated the process of obtaining approval of the Central
Government for excess remuneration paid / payable to the Managing
Director.
An amount of Rs. 44.900 millions, being the expenditure incurred towards
repairs/replacement of assets at the Company's Navi Mumbai plant damaged due to
flood in the year 2005, net of 'on account' payment received from the insurance
company, is further receivable by the Company. The Company has initiated
arbitration proceedings for settlement of the claim and necessary adjustments will
be made upon settlement of the claim.
A report on Corporate Governance in terms of Listing Agreement and a note on
Management Discussion and Analysis with respect to the Company's business are
provided in the Annual Report.
ENVIRONMENT, HEALTH AND SAFETY:
Company continues to be committed to high standards of Safety, Health and
Environment. Its systems continue to be certified under ISO 9001, OHSAS 18001
and ISO 14001 (2004) by BVQI. Further, in view of the continual efforts in the
area of Responsible Care@, the Company was also granted permission to use the
RC.R logo for the period 2007 to 2009 by Indian Chemical Council (ICC).
The quality of stack emissions, ambient air, noise levels and liquid effluents
continue to be closely monitored. They have consistently met the norms set by
Maharashtra Pollution Control Board (MPCB) in its consent to operate the
plants. The recently commissioned Cumene Zeolite project and propylene recovery
scheme have further enhanced the environmental performance by drastically
reducing generation of organic residues, reducing catalyst inventory,
increasing catalyst life, minimizing vapour emissions and improving
yields.
Periodic medical examination of all employees including contractors' workmen
was carried out and various occupational health awareness programmes were
conducted.
As part of the Responsible Care@ initiative, community awareness programmes
were conducted on safety, environment management and occupational health for
doctors, college students and factory medical officers. Two blood donation
camps were conducted during the year. Free medical camps for eye, lung and skin
diseases and general check-up were held in the rural areas of Belavali and
Dwarkadish (Apta-Panvel).
A free medical camp was conducted for Navi Mumbai Traffic Police and was
attended by approximately 80 Traffic Police personnel. Apart from this,
awareness programmes on health like 'Health and Naturopathy', 'BP and Heart
Attack', 'Laughter Yoga Therapy', HIV/AIDS and First Aid Training were also
organized during the year for the employees. More than 200 employees benefited
from these. programmes.
During the year, the dedicated emergency responding staff responded to
two major outside emergencies involving fire. This was well appreciated by the
local media. In accordance with the on-site Emergency Management Plan,
emergency mock drills were conducted from time to time at all the three units.
In addition, an offsite disaster drill was conducted on June 29, 2006, during
silent hours which was witnessed by all offsite respondent teams. This included
teams from Director of Industrial Safety and Health (DISH), State Pollution
Control Board (MPCB) and other industries.
The Company conducted training programmes on safety periodically to cover all sections
of employees including contractors' employees. During the year, four training
programmes were conducted on 'Safe Transportation of Hazardous Chemicals' for
drivers of vehicles carrying hazardous goods. In addition, training programmes
were conducted on 'Management of Chemical Transpo Emergency' for Civil Fire
Brigade Personnel and 'Chemical Disaster Management' for volunteers of the
Academy of Disaster Management.
BUSINESS OF THE
COMPANY
The Company is engaged in the manufacture and marketing of organic
chemicals and phenolic resins that find a wide range of industrial
applications. There is no segmentation of products manufactured by the Company.
Applications of these products cover laminates, tyres, resins, plasticizers,
paints, surfactants, pharmaceuticals, lubricating oil additives, surface
coating, paper and downstream chemicals. The Company has three manufacturing
units situated at Navi Mumbai, Rasal and Lote.
REVIEW OF OPERATIONS:
Capacity utilization was higher at 76% during the year under review as against
72% in the previous year.
The Cumene Zeolite project was successfully commissioned in the month of
January, 2007. This has helped make the Company self-sufficient in this vital
intermediate. Solid fuel based hot oil unit and power generation plant have
also commenced during 2006-07.
Sales turnover of Rs. 6880 millions (including excise duty) was higher by 18%.
Exports aggregated Rs. 1210 millions, 21% higher over the previous
year.
Phenol and Acetone continued to face severe competition from imports on account
of new larger capacities which came up in Zia. While selling prices were
volatile during the year, margins were under pressure due to steep increase in
input costs. This partly reflects the cyclicity of the commodity chemical
business.
The total operating cost, excluding depreciation and interest, aggregated Rs.
5877.200 millions as compared to Rs. 5475.200 millions during the previous
year, an increase of 7%. This increase was largely on account of higher cost of
raw materials and energy.
PBIDT to sales ratio was 4%, same as in the previous year.
Staff cost was Rs. 307.600 millions compared to Rs. 292.600 millions in the
previous year, an increase of 5%.
The cost of fuel, power and water was Rs. 575.200 millions -19% higher than in
the previous year, due to increases in energy costs globally.
Interest cost at Rs. 142.900 millions was significantly higher compared to
Rs.56.500 millions during the previous year because of additional borrowings
for projects and increase in interest rates.
Other income was Rs. 54.100 millions (compared to Rs. 539.800 millions for the
pervious year, which included profit on sale of leasehold land (Rs. 318.600
millions), export incentives (Rs. 46.700 millions) and insurance claim on loss
of profit (Rs. 80.300 millions) following flooding at the Navi Mumbai
site.
Profit/(Loss) before tax (PBT) and profit after tax for the year were
Rs.(24.300 millions) and Rs. 1.000 millions respectively, as against Rs. 68.600
millions and Rs. 119.400 millions for the previous year.
Earning per equity share (EPS) was Rs. 0.02 for the year under review as
against Rs. 2.82 for the previous year.
INDUSTRY STRUCTURE AND DEVELOPMENTS:
Company has been in the business of manufacturing basic organic chemicals viz.
Phenol, Acetone, and Phthalic Anhydride as also derivatives such as PNP, PDDP
DAA, IPH, AMS-Dimers, etc. These chemicals have a wide range of applications as
detailed earlier.
Chemical industry being highly capital intensive, typically sees large capacity
plants being set up elsewhere in the world to avail of economies of scale.
This, in turn, leads to periods of over-capacity and cyclicity.
The Phenol and Acetone business went through this phase in 2005 and 2006 due to
excess capacity in the region.
While this resulted in depression in selling prices, there were steep increases
in the costs of raw materials and energy, which are driven by crude oil prices.
Consequently, margins were under pressure and there were large volumes of low
priced imports.
The Government of India continued with its policy of reducing tariffs and since
there has not been a commensurate improvement in infrastructure and transaction
costs, it further aggravated profitability of chemical companies. The other
area of concern is the strength of the rupee vis-a-vis other currencies, which
has seen very sharp movements.
OPPORTUNITIES & THREATS:
The demand for the Company's commodity and speciality products in the country
is growing typically at a rate higher than the global average growth rate of
the industry and reflects the high GDP growth rates of the economy. Therefore,
the Company has opportunities of augmenting its market share and improving its
sales as well as profitability. Companies in India generally are more
competitive than in developed countries in respect of capital costs and
technology development and this offers opportunities for new products in
synergistic areas.
Among the threats posed to the Company are low priced imports in the form of
dumping and high energy costs. The Company has addressed these issues partly by
approaching the Government with a request to levy anti-dumping duties within
the framework of WTO and by continuing to reduce costs. It has turned to
non-petroleum fuels (such as coal and wood) at one of its sites to reduce the
cost of energy and improve the quality of power supply.
BUSINESS OUTLOOK:
The Cumene Zeolite Project, which was commissioned in January 2007, has fully
stabilized and the Company has started realizing the benefits envisaged.
The change in the fuel mix and captive power generation at Rasal have also
resulted in lower production cost.
The Government of India has levied provisional anti-dumping duty on imports of
Acetone and is in the process of considering applications for levy of duties on
Phenol and Nonyl Phenol. These, it is hoped, will offset to some extent the
erosion of prices due to dumping and lower tariffs.
The introduction of two new products during the year, exclusively for exports,
has added to the Company's range and their volumes are expected to grow in
future.
The Company is also actively working on alternate sources of some key raw
materials which were in short supply.
Fixed Assets
- Goodwill
- Leasehold
- Land and Development
- Intangible Assets
- Freehold Land and
Development
- Buildings
- Plant and Machinery
- Furniture , Fixtures and
Vehicle
- Equipment
Mission
- Become a top performer in
niche area in the chemical industry
- Focusing on the growth and
development of the people, surroundings and society
- Encouraging the spirit of
discovery and research
- Weaving the values of
integrity in all the activities
- Reiterating the commitment
to safety and quality with emphasis on customer delight.
Quality, Environment,
Health & Safety Policy
Schenectady
Herdillia Limited (SHL), having manufacturing facilities for Cumene, Phenol,
Acetone and their derivatives, Phthalic anhydride, Isobutylbenzene,
Acetophenone, Fumaric acid, Alphamethyl styrene and its dimers at Navi
Mumbai, Alkyl Phenols at Rasal and Performance Resins at Lote is
committed to :
Quality Priority
Strive
for leadership in all the products by aligning itself with changing
expectations as also both stated and implied needs of the customers. In this
context company shall endeavor to :
Delight the
customers, strive for business growth and profitability and work towards
mutually beneficial relationships with the stakeholders.
Guiding Principles
Conduct the
business following the Guiding Principles of Responsible Care, in a manner
designed to prevent pollution, protect the environment, health and safety of
the employees, the customers and other interested parties.
EHS Priority
Exceed
norms and make Environment, Health, Safety and Resource conservation critical
considerations for all new and existing products and processes.
Compliance
Comply
with all applicable legal and other environmental, health and safety
requirements.
Training
Develop
required competencies among the employees and others as applicable. Educate and
train them regarding QEHS systems.
Involvement
Involve
employees at different levels and promote safety and health through safety
committees, review of safety systems and participation in implementation /
follow-up actions to make SHL a clean and safe work place. Appreciate and
motivate employees through rewards and recognition systems.
Communication
Provide
information on health and environmental risks and pursue protective measures.
Continual Improvement
Strive
for continual improvement in all aspects of the organizational activities with
special emphasis on QEHS performance.
QEHS
policy and objectives are reviewed in Apex committee meetings for their
continuing suitability. It is ensured that these are understood, implemented
and maintained at all levels in the organization.
Community Development
Schenectady
Herdillia Limited (SHL) organises and participates in several community service
projects. A few of the activities out of the several community development
tasks are listed here:
- Regular training programs
for school teachers, municipal corporators, media representatives and
police staff on awareness about SHL, its products, safety measures and
related issues.
- A minimum of two free
medical camps every year for the benefit of people residing in the
surrounding communities. Moreover, free medical check-up is provided to
traffic police staff who are exposed to vehicular pollution.
- The company has a
distinguished history of sending its volunteer employees to places
affected by natural calamities. In 1989 a nearby village was affected by
floods. SHL's team of volunteer employees played a significant role in
this village by providing clothes, blankets and vessels to the affected
population, cleaned and repaired several water wells and constructed a
school room for the children. In 1993, the district of Latur in the state
of Maharashtra (India) suffered a severe earthquake. SHL's volunteers visited
the earthquake affected villages and provided blankets, clothes and other
items of necessity.
All employees contribute generously for providing relief to people affected by natural calamities and war.
- SHL funds and operates a
charitable foundation which is a vehicle for granting scholarships to
students, financing medical treatment for those in need and upgrading the
assets of educational institutions.
As Per Web:
Schenectady Herdillia Limited, part of Schenectady International Group, Inc. is
a leading producer of petrochemicals in India having technological tie-ups with
several large international corporations.
Schenectady International Group, Inc. is a global leader
in alkylphenols, phenolic resins, and electrical insulation coatings. It has 25
manufacturing facilities spread over 14 countries. Of these there are two sites
in India for the manufacture of chemicals, viz. Schenectady Herdillia Limited
and Schenectady Specialities Asia Private Limited, both in the vicinity of
Mumbai.
A customer driven company, Schenectady Herdillia's wide range of quality
products is well accepted globally and has been accredited by BVQI with the ISO 9001 : 2000, ISO 14001 : 1996 and OHSAS 18001 : 1999 certifications.
Schenectady Herdillia's inherent strength lies in its wellhoned R&D
capability which has earned it worldwide recognition and national awards,
making it a major contributor in the evolution of the Indian speciality
chemical industry.
The Company's plants for Cumene, Phenol, Acetone, Diacetone Alcohol,
Phthalic Anhydride, and Phthalate plasticisers were set up at Thane-Belapur, Navi Mumbai, in
collaboration with leading international licensors such as UOP, BP Chemicals,
Hercules and Scientific Design. Commercial production was established in
1968.
During the following years, the capacities of these palnts were
steadily expanded and the company setup new facilities for the manufacture of
wide range of speciality chemicals.
The Company has since made considerable progress in terms of production volumes,
plant operation, market development, R&D, pollution control, expansion and
diversification and in keeping with its high customer oriented profile, is
rated among the leading petrochemical companies in India.
Products Range
Petro -
Chemicals
- Phenol
- Cumene
- Acetone
- Diacetone
Alcohol
- Phthalic
Anhydride
- Nonyl Phenol
- Para Cumyl
Phenol
- Para Octyl
Phenol
- 2-6 Diisopropyl
Phenol
- Diphenyl Oxide
- Mesityl OPxide
- Isophorone
- Hexylene Glycol
- Alpha Methyl Styrene
- Unsaturated Dimers of Alpha
Methylstyren
- Fumaric Acid
- Isobutyl Benzene
- Diphenyl Oxide
- Hersol
Perfumary
Chemicals
- Diphenyl oxide
- Acetophenone
- Dimethyl Benzyl Cabrinol and
Acetate
Pharmaceutical
Intermediates
·
Isobutyl
Benzene
·
2,6
– Diisopropyl Phenol
Performance
Resin
- Tackifier Resin
- Butyl Curing Resins
- Adhesive Resins
- Friction Lining Resins
- Grinding Wheel Resins
- Can Coating Resins
- Reinforcing Resins
Schenectady Herdillia is accorded the status of an export house in
accordance with the permission of the exim policy of the Government of
India. Exports are routed either from JNPT Port (about 15 Km from factory) or
Mumbai port (about 20 Km from factory ) and in box containers or Iso
tanks.
Major Export
Products are
- Diacetone
Alcohol
- Nonyl Phenol,
- Dodecyl Phenol,
- Para Cumyl
Phenol,
- Para Octyl
Phenol,
- Diphenyl Oxide,
- Isophorone,
- Hexylene Glycol
- Acetophenone
- Iso Butyl
Benzene,
- Hersol
- Alpha Methyl
Styrene,
- Unsaturated
Dimers of Alpha Methyl Strene
- Pthalic
Anhydride,
- Iso Butyl
Benzene
Major Imports :
- Cumene
- Ortho-Xylene
- Propylene
Trimer
- Propylene
Tetramer
- Di-isobutylene
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.39.27 |
|
UK
Pound |
1 |
Rs.77.33 |
|
Euro |
1 |
Rs.57.51 |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
|
66 |
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 |
|