MIRA
INFORM REPORT
|
Report Date : |
21.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
A R THERMOSETS PRIVATE LIMITED |
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Registered Office : |
104, Chandralok Complex, 26/27 – D, Birhana Road, Kanpur – 208001,
Uttar Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
15.04.1991 |
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Com. Reg. No.: |
20-13046 |
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CIN No.: [Company
Identification No.] |
U25204UP1991PTC013046 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Bitumen Emulsion for Roads and Architectural
Applications. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 48824 |
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Status : |
Satisfactory |
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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 reported as 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
|
Registered Office : |
104, Chandralok Complex, 26/27 – D, Birhana Road, Kanpur – 208001,
Uttar Pradesh, India |
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Tel. No.: |
91-512-2363491 |
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Fax No.: |
91-512-2354644 |
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E-Mail : |
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Website : |
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Factory : |
C-58, Malwan Industrial Area, Fatehpur |
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Tel. No.: |
91-5181-248359/248357 |
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Fax No.: |
91-5181-248858 |
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E-Mail : |
DIRECTORS
|
Name : |
Mrs. Vandana Gupta |
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Designation : |
Director |
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Address : |
13 – Gandhi Gram, G T Road, Kanpur -208001 , Uttar Pradesh |
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Date of Birth/Age : |
27.06.1970 |
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Date of Appointment : |
15.04.1991 |
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Name : |
Mr. Neeraj Gupta |
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Designation : |
Director |
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Address : |
13 – Gandhi Gram, G T Road, Kanpur -208001 , Uttar Pradesh |
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Date of Birth/Age : |
08.11.1970 |
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Date of Appointment : |
15.04.1991 |
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Name : |
Mr. Saurabh Gupta |
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Designation : |
Director |
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Address : |
117/H-1/298 Model Town, Pandu Nagar, Shastri Nagar, Kaka Deo Kanpur –
208007, Uttar Pradesh |
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Date of Birth/Age : |
06.05.1975 |
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Date of Appointment : |
18.06.1999 |
KEY EXECUTIVES
|
Name : |
K N Shridhar and Associates |
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Designation : |
Company Secretary |
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Address : |
111, Chandralok Complex, Birhana Road, Kanpur |
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Tel No.: |
91-512-2300628/2570321 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Mrs. Vandana Gupta |
|
50 |
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Mr. Neeraj Gupta |
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50 |
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Category |
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Percentage |
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Bodies Corporate (Not Mentioned above) |
|
9.60 |
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Directors or Relatives of directors |
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90.40 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Bitumen Emulsion for Roads and Architectural
Applications. |
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Products : |
·
Cationic Bitumen Emulsion ·
Polymer Modified Bitumen ·
Crumb Rubber Modified Bitumen ·
Cutback Bitumen ·
Natural Rubber Modified Bitumen ·
Micro surfacing Emulsion |
GENERAL
INFORMATION
|
Customers : |
·
Ircon International Limited ·
Larson and Turbo Limited ·
Oriental Structures and Engineers Limited, New Delhi ·
Somdutt Builders Limited ·
UPPWD ·
Progressive Construction Limited ·
Hindustan Constructions Limited ·
National Highways Authority of India, Allahabad ·
Hira Singh Sobti Constructions Limited, Bareilly ·
Mukand Projects ·
Ghana Ram Constructions, Jhansi ·
KNR Project, Lucknow ·
Vijay Express Way, Lucknow ·
TRG Industries Limited, New Delhi ·
B. Aggarwal Store Products Limited, Chattisgarh ·
Arun Kumar Patel and Company, Rewa (MP) ·
Rajasthan State PWD ·
ECSB, JSRC JV. ·
DNP Sinah and Company ·
Pati Bel (JV), Etawah ·
Rajendra Singh Bhamboo ·
Satya Prakash Brothers and Company, New Delhi ·
HS Builders Private Limited, Lucknow ·
Gangotri Enterprises, Gorukhpur ·
Shanti Constructions Company, Jhansi |
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Bankers : |
·
Indian Overseas Bank Swaroop Nagar,
Kanpur ·
Bank of Baroda Kanpur – 208001,
Uttar Pradesh, India |
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Facilities : |
- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Dr Prabhat Birla Chartered Accountants |
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Address : |
13/392, Civil Lines, Kanpur – 208001, Uttar Pradesh, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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75000 |
Equity shares |
Rs.100/- each |
Rs.7.500 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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65050 |
Equity shares |
Rs.100/-
each |
Rs.6.505
Millions |
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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 |
6.505 |
6.500 |
6.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
5.701 |
4.140 |
3.369 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
12.206 |
10.640 |
9.869 |
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LOAN FUNDS |
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1] Secured Loans |
15.569 |
12.404 |
12.508 |
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2] Unsecured Loans |
4.271 |
3.727 |
3.428 |
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TOTAL BORROWING |
19.840 |
16.131 |
15.936 |
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DEFERRED TAX LIABILITIES |
0.168 |
0.155 |
0.273 |
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TOTAL |
32.214 |
26.926 |
26.078 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
9.821 |
6.360 |
7.355 |
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Capital work-in-progress |
0.000 |
1.666 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
3.441
|
4.612 |
7.133 |
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Sundry Debtors |
19.562
|
14.005 |
9.444 |
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Cash & Bank Balances |
0.249
|
0.917 |
1.440 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
7.616
|
6.081 |
5.251 |
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Total
Current Assets |
30.868
|
25.615 |
23.268 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
7.329
|
6.020 |
4.450 |
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Provisions |
1.445
|
1.095 |
0.596 |
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Total
Current Liabilities |
8.774
|
7.115 |
5.046 |
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Net Current Assets |
22.094
|
18.500 |
18.222 |
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MISCELLANEOUS EXPENSES |
0.299 |
0.400 |
0.501 |
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TOTAL |
32.214 |
26.926 |
26.078 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
127.871 |
89.502 |
56.750 |
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Other Income |
0.777 |
0.325 |
0.090 |
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Total Income |
128.648 |
89.827 |
56.840 |
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Profit/(Loss) Before Tax |
2.490 |
1.295 |
1.414 |
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Provision for Taxation |
0.929 |
0.628 |
0.518 |
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Profit/(Loss) After Tax |
1.561 |
0.667 |
0.896 |
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Export Value |
N.A. |
N.A. |
N.A. |
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Import Value |
14.708 |
10.260 |
N.A. |
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Expenditures : |
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Financial Charges |
1.916 |
1.611 |
0.000 |
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Power & Fuel |
0.000 |
0.000 |
0.000 |
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Depreciation & Amortization |
0.914 |
0.677 |
0.977 |
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Other Expenditure |
120.818 |
83.956 |
53.472 |
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Total Expenditure |
123.648 |
86.244 |
54.449 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
1.21
|
0.74 |
1.58 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.95
|
1.45 |
2.49 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.12
|
4.05 |
4.62 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.12 |
0.14 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.34
|
2.18 |
2.13 |
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Current Ratio (Current Asset/Current Liability) |
|
3.52
|
3.60 |
4.61 |
LOCAL AGENCY FURTHER
INFORMATION
Form 8 :
|
Corporate
identity number (CIN) Foreign company registration number |
U25204UP1991PTC013046 |
|
Name of the
Company |
A R THERMOSETS PRIVATE LIMITED |
|
Address |
104, Chandralok Complex, 26/27 – D, Birhana Road, Kanpur – 208001,
Uttar Pradesh, India |
|
This form is for |
Creation of
Charge |
|
Type of Charge |
Immovable Property Corporate Guarantee |
|
Particulars of
the charge holder |
Bank of Baroda, Kanpur
– 208001, Uttar Pradesh, India |
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Nature or
description of the instrument(s) creating or modifying the charge |
Corporate Guarantee
provided for Rs.90.000 Millions for various credit facilities to 100% EOU
Division of M K U Private Limited |
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Date of the
instrument creating or modifying the charge |
14.05.2007 |
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Amount secured by
the charge |
Rs.90.000
Millions |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of Interest
: As per Bank Norms Terms of
repayment : As per Bank Norms Margin : As per Bank Norms Extent and
operation of the charge : Corporate Guarantee
of Rs.90.000 Millions |
|
Short particulars
of the property charged (including location of the property) |
C 60,61,62 and
B31 at Malwan, Fatehpur in the name of A R Thermosets Private Limited and
extension of Mortgage of Property at 13, Gandhi Gram, Kanpur Owned by Mr.
Gopal Krishna and Mrs. Kiran Gupta etc. |
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Particular of the
present modification |
N.A. |
|
Name of the company |
A R THERMOSETS PRIVATE LIMITED |
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Presented By |
Mr. Neeraj Gupta |
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1) Date and description of instrument creating the change |
Hypothecation
Agreements dated 14.10.2003 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.26.500
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
1st
Charge on machinery whether fixed movable and whether attached to the
premises or not. Stock of Raw Material, WIP, Finished Goods, Book Debts, Assets of the company
having book value of Rs.6.366 Millions |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rs.12.000
Millions for bills purchases Inland Rs.8.500 Millions
for sub – limit of bill Rs.4.000 Millions
for L G (Financial) Rs.2.000 Millions
for L C Inland Interest rate as
per PTLR 2.25% as per Bank instructions issued from time to time |
|
5) Name and Address and description of the person entitled to the charge. |
Indian Overseas
Bank Swaroop Nagar,
Kanpur |
|
6) Date and brief description of instrument modifying the charge |
N.A. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
N.A. |
Profile :
Subject has today grown into a force to be reckoned with. It constitutes
the larger part of GKG Group where it shares the limelight with its sibling
companies M Kumar Udyog (P) Limited, A.R. Polymers (P) Limited
and Tirupati Equipments (P) Ltd.
A lethal combination of some of the finest manpower and technical
expertise coupled with three manufacturing units and a strong network
comprising of over 27 representatives across the country have given subject.
the ability and the confidence to comprehend and face any and all challenges
Subject was formed in the year 1991 which started its manufacturing
activities with manufacturing of disinfected fluids and insecticidal Space Sprays
and did good business in this field for 7-8 years.
In the year of 1997 the company diversified into the production of
bitumen emulsion and a plant was set up in Malwan industrial area with ultra
modern manufacturing facilities. The concept of Bitumen Emulsion was not quite
popular in the region of Uttar Pradesh. The Sales Team along with the
management did extensive promotional activities to make the product popular
amongst the end user which finally resulted in a turn over of the company to
reach to the tune of US $ 10 million.
To have a better technical edge, the company tied up with Valley Slurry
Seal for being updated with latest technologies and for import of emulsifier
and other specified Chemicals being used in this field.
The company later on ventured into manufacturing of Polymer Modified
Bitumen followed by some experimental jobs in the State of Uttar Pradesh in
recent years.
The development of Crum Rubber Modified Bitumen popularly know as CRMB
has again given the company an upper edge in this field and CRMB manufactured
by us has given very good results in the laboratory.
Philosophy :
Development of new products and Tecnologies upgradation are on-going
activities at A.R.Thermosets.
CRMB-Ex is the result of this Philosophy of continuous improvment in their
products and services.
Micro surfacing (
Slurry Sealing ) :
One of the most versatile tools in the road maintenance arsenal,
Microsurfacing is a polymer-modified cold-mix paving system that can remedy a
broad range of problems on today's streets, highways, and airfields.
Like its parent product, slurry seal, Microsurfacing begins as a mixture
of dense-graded aggregate, asphalt emulsion, water, and mineral fillers. While
conventional slurry seal is used around the world as an economical treatment
for sealing and extending the service life of both urban and rural roads,
Microsurfacing has added capabilities, thanks to the use of high-quality,
carefully monitored materials, including advanced polymers and other modern
additives.
Additional
Manufacturing facilities :
Subject shall be commencing the production of Microsurfacing ( Slurry Sealing )
by October 2003. Apart from this new product Subject is putting up one more
unit at Kosikala near Mathura refinery of CRMB with the capacity of 100MT/Day.
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 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
|