MIRA
INFORM REPORT
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Report Date : |
03.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
HYDRO S AND S INDUSTRIES LIMITED |
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Registered Office : |
Dhun Building, Third Floor, 827,
Mount Road, Madras - 600002, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.11.1983 |
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Com. Reg. No.: |
18-10438 |
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CIN No.: [Company
Identification No.] |
U25209TN1983PLC010438 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES00014A |
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PAN No.: [Permanent
Account No.] |
AAACH0931N |
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Legal Form : |
A Public Limited Liability Company. The Company’s shares are listed on
Stock Exchanges. |
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Line of Business : |
Manufacturers of Polypropylene Compounds and Cable Sheathing
Compounds. |
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 1105570 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and progressive company. In fact, it is
a subsidiary of Hydro, U.K. General financial position is satisfactory. Trade relations are fair.
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 : |
Dhun Building, Third Floor, # 827, Anna Salai, Chennai-600002, Tamilnadu, India |
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Tel. No.: |
91-44-28521736/ 28520292 |
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Fax No.: |
91-44-28520420 |
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E-Mail : |
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Website : |
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Factory : |
15C,SIPCOT IndustrialComplex, Pudukkottai:622002 |
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Factory : |
RS No. 38/1, Sedarapet Village, Villiyanur Commune, Pondicherry: 605111 |
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Factory : |
RS15/15,Vazhudavur Road, Kurumbapet, Pondicherry: 605 009 |
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Tel. No.: |
91-413-2272155 |
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Fax No.: |
91-413-2277430 |
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E-Mail : |
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Marketing Offices : |
Located at : v Chennai v Gurgaon v Mumbai v Pune v Hyderabad v Bangalore v Coimbatore |
DIRECTORS
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Name : |
V. Srinivasan |
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Designation : |
Chairman |
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Name : |
Murali Venkatraman |
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Designation : |
Vice-Chairman |
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Name : |
Babulal M. Varma |
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Designation : |
Director |
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Name : |
V. Thirupathi |
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Designation : |
Director |
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Name : |
Narayan Sethuramon |
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Designation : |
Managing Director |
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Name : |
T. Dulip Singh |
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Designation : |
Director |
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Name : |
Dinshaw Keku Parakh |
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Designation : |
Director |
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Name : |
S.K. Subramanyan |
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Designation : |
Director (Finance
& Administration) & Company Secretary |
KEY EXECUTIVES
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Audit Committee |
V. Thirupathi (Chairman) Babulal M. Varma (Member) Murali Venkatraman (Member) |
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Remuneration
Committee |
Babulal M. Varma (Chairman) V. Thirupathi (Member) V. Srinivasan (Member) |
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Investors
Grievances Committee |
V. Srinivasan (Chairman) Murali Venkatraman (Member) |
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Name : |
S.K. Subramanyan |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
4263724 |
65.34 |
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Non Resident Individuals |
108138 |
1.66 |
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Bodies Corporate |
715651 |
10.97 |
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FIs/ Mutual Funds/ Banks |
200 |
-- |
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Individuals |
1437916 |
22.03 |
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Total
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6525629 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Polypropylene Compounds and Cable Sheathing
Compounds. |
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Products : |
Products POLYPROPYLENE - Profitable Solutions in Plastics Polypropylene modified by the addition of reinforcements
such as talc, chalk, mica and glass fibre has enabled it to establish itself as
a metal substitute in engineering applications. Further sophistication
involving development of coupling systems, impact modifiers and technology
for improved surface finish has more recently led to rapid growth of second
generation grades in areas traditionally dominated by other engineering
plastics such as ABS, Polyamide, modified PPO, Polyester, Acetal and
Polycarbonate.
THERMOPLASTIC
ELASTOMERS - Profitable Solutions in
Plastics HSSIL manufactures a wide
range of thermoplastic elastomers under the HYPRENE brand name. These
products are manufactured under a strategic alliance with Advanced Elastomer
System, USA (AES) the worldwide leader in engineered TPEs. AES provides the
base material and technical support to HSSIL for manufacture of TPEs in India.
PULTRUSION
- New Generation Fibre Glass
Gratings and Profiles The use of Plastics as a
substitute for wood and metal is increasing day-by-day world over due to its
excellent chemical, electrical and mechanical properties. It is in this context
that pultruded FRP composite stands out as a material for the future.
Pultrusion is one of the innovative processing techniques for the manufacture
of FRP composites. |
PRODUCTION STATUS
As on 31.03.2007
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Plastic Compounds |
MT |
18000 |
18000 |
12724 |
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FRP Pultruded Profiles |
Kgs |
30000 |
30000 |
18707 |
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Goods traded (High Sea) |
MT |
-- |
-- |
152 |
GENERAL
INFORMATION
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Customers : |
Customers
v Adept
Polymers Private Limited v BPL
Limited v Brite
Brothers Limited v Bharat
Industries v Champion
Plastics (India) Private Limited v Calcom
Vision Limited v English
Tool and Castings Private Limited v Fiat
India Limited v G.M.
Polymers v General
Motors Private Limited v Hyundai
Motors India Limited v Injecto
Plast Private Limited v Krishna
Maruti Limited v SL
Lumax Industries Limited v Machino
Plastics Limited v Maruti
Udyog Limited v Mutal
Mecaplast Limited v Motherson
Automotive Tech and Eng Limited v M.N.
Auto Products Limited v Omni
Matrix Private Limited v Paras
Wires Private Limited v Pentadaewha
Auto Parts Limited v Polyflex
(India) Limited v Polyplastics
v Poly
Craft v Pricol
Limited v Precision
Pipes and Profiles Company Limited v
Premium Mouldings & Pressings Private Limited v Primex
Plastics Private Limited v Rainbird
Pipe Products v Ramya
Plastics v Shaily
Engineering Plastics Limited v Shinhan
Plasto India Private Limited v Shremas
v Suparna
Plastics Private Limited v Sundaram
Auto Components Limited v SYC
India Limited v Tata
Auto Plastics Systems Limited v Tractor
And Farm Equipments Limited v TG
Kirloskar Automotive Private Limited v Toshi
Auto Industries Private Limited v Tubes
and Pipes India v Vbros
Auto Private Limited v Visteon
Automotive Limited v
Vipul - S Plastocrafts Private Limited v Bhagyalaxmi
Electroplast Private Limited v Kaveri
Pet and Polyforms Private Limited v Nilkamal
Plastics Limited v Supreme
Industries Limited v Sri
Lalitha Plastic Industries v Titan
Plast Private Limited v
V.S.N Plastics Private Limited v Aquamall
Water Solutions v Goldwyn
Limited v Indo
Matsushita Appliances Company Limited v KK
Plastics v Saba
Industries Private Limited v
Whirlpool of India Limited v Novar
India Limited v
Amararaja Batteries Limited |
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No. of Employees : |
400 |
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Bankers : |
v State Bank of
India, Chennai - 600 001 v Canara Bank,
Chennai – 600 002 v HDFC Bank
Limited, Chennai – 600 002 |
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Facilities : |
Secured Loans (Rs.
In millions) :
Note: (a) Cash credit and other working capital facilities from banks are secured against hypothecation of stock-in-trade, bookdebts, documentary bills and supply bills and collaterally secured by way of second charge on the present and future fixed assets of the company at Pudukkottai, Pondicherry and Tirunelveli. b) Term loans from Banks are secured by a mortgage of the Company's immovable property and hypothecation of applicable movable assets (except book debts), present and future, at Pudukkottai, Pondicherry and Tirunelveli on a pari passu basis and subject to prior charge in favour of the Company's bankers for working capital. 2. Letters seeking confirmation of balances in respect of debtors and creditors have been sent during the year. Confirmation remains to be received in some cases. 3. Unclaimed dividends are transferred to the Investor Education and Protection Fund at the appropriate time. Unsecured Loans
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P Srinivasan and Company Chartered Accountants |
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Address : |
Chennai-600017, Tamilnadu, India |
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Associates/Subsidiaries : |
v W S Industries India
Limited v W S
International Private Limited v Vensunar
Holdings Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 100.000 millions |
|
300,000 |
16% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs. 30.000 millions |
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Total
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Rs.
130.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6,525,629 |
Equity Shares |
Rs.10/- each |
Rs. 65.256 millions |
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Forfeited share |
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Rs. 0.024
millions |
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Total |
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Rs. 65.280 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
65.280 |
65.280 |
65.280 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
155.834 |
135.643 |
118.403 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
221.114 |
200.923 |
183.683 |
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LOAN FUNDS |
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1] Secured Loans |
214.278 |
200.658 |
198.425 |
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2] Unsecured Loans |
2.262 |
1.882 |
1.899 |
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TOTAL BORROWING |
216.540 |
202.540 |
200.324 |
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DEFERRED TAX LIABILITIES |
39.443 |
42.112 |
40.762 |
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TOTAL |
477.097 |
445.575 |
424.769 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
182.665 |
165.336 |
184.436 |
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Capital work-in-progress |
3.528 |
2.859 |
0.766 |
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INVESTMENT |
11.555 |
25.987 |
2.919 |
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DEFERREX TAX ASSETS |
0.183 |
5.852 |
5.852 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
126.592
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115.293
|
117.838 |
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Sundry Debtors |
229.991
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191.517
|
177.772 |
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Cash & Bank Balances |
9.493
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5.536
|
3.284 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
40.728
|
46.550
|
34.552 |
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Total
Current Assets |
406.804
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358.896
|
333.446 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
104.023
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94.899
|
88.177 |
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Provisions |
23.614
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18.455
|
14.472 |
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Total
Current Liabilities |
127.637
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113.354
|
102.649 |
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Net Current Assets |
279.167
|
245.542
|
230.797 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
477.097 |
445.575 |
424.769 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1006.953 |
814.719 |
703.362 |
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Other Income |
7.689 |
21.033 |
1.700 |
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Total Income |
1014.642 |
835.752 |
705.362 |
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Profit/(Loss) Before Tax |
41.653 |
31.369 |
9.153 |
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Provision for Taxation |
12.300 |
5.200 |
5.400 |
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Profit/(Loss) After Tax |
29.353 |
26.169 |
3.753 |
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Exports : |
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FOB Value of Exports |
5.431 |
20.847 |
7.575 |
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Total Earnings |
5.431 |
20.847 |
7.575 |
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Imports : |
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Raw Materials |
164.302 |
105.216 |
162.220 |
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Capital Goods |
1.011 |
1.478 |
22.590 |
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Total Imports |
165.313 |
106.694 |
184.81 |
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Expenditures : |
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Cost of Goods Sold |
828.534 |
667.524 |
565.114 |
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Salaries, Wages, Bonus, etc. |
30.342 |
27.377 |
24.855 |
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Interest |
21.641 |
17.396 |
11.858 |
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Depreciation & Amortization |
14.300 |
15.889 |
13.851 |
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Other Expenditure |
78.172 |
76.196 |
80.531 |
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Total Expenditure |
972.989 |
804.382 |
696.209 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
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Sales Turnover |
256.300 |
286.800 |
300.100 |
326.700 |
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Other Income |
0.600 |
0.500 |
0.500 |
0.200 |
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Total Income |
256.900 |
287.300 |
300.600 |
326.900 |
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Total Expenditure |
226.300 |
256.000 |
264.900 |
299.200 |
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Operating Profit |
30.600 |
31.300 |
35.700 |
27.700 |
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Interest |
7.000 |
6.500 |
6.900 |
8.900 |
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Gross Profit |
23.600 |
24.800 |
28.800 |
18.800 |
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Depreciation |
4.500 |
4.500 |
4.100 |
2.200 |
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Tax |
3.000 |
7.000 |
6.300 |
5.300 |
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Reported PAT |
15.600 |
12.800 |
16.400 |
9.300 |
KEY
RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
0.99 |
1.05 |
0.88 |
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Long Term Debt-Equity Ratio |
0.21 |
0.27 |
0.21 |
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Current Ratio |
1.18 |
1.17 |
1.25 |
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TURNOVER RATIOS |
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Fixed Assets |
3.96 |
3.33 |
3.20 |
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Inventory |
9.66 |
8.15 |
8.66 |
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Debtors |
5.54 |
5.15 |
4.60 |
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Interest Cover Ratio |
2.47 |
1.65 |
1.67 |
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Operating Profit Margin(%) |
6.39 |
5.17 |
4.48 |
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Profit Before Interest And Tax Margin(%) |
5.17 |
3.49 |
2.79 |
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Cash Profit Margin(%) |
3.39 |
2.83 |
2.15 |
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Adjusted Net Profit Margin(%) |
2.17 |
1.16 |
0.46 |
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Return On Capital Employed(%) |
14.36 |
8.43 |
6.56 |
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Return On Net Worth(%) |
11.99 |
5.72 |
2.04 |
LOCAL AGENCY
FURTHER INFORMATION
Director’s Report
Business
Operations
During the year, .the company recorded a growth of 23% in value terms and achieved the Rs. 1000.000 millions e Net sales revenue milestone. Though the sales growth was reasonable in value terms, it was only very marginally higher than the previous year in volume terms. This was due to the decision of the company to exit from the furniture segment resulting from diminishing margins and also to align the product range to capitalize on the prospects of the automotive sector and the development of new clients in this sector.
In this segment, the passenger car category continued to be the predominant application for the company's products. Thermoplastic Elastomer Compounds performed well with a growth of around 57% during the year Marketing of third party products gained momentum during the first full year of activity with a sales of 152 MTs.
The prices of Polypropylene which is the primary raw material for the company, were very volatile during the year and reached record levels during May'06 to September'06. Though the company pursued price revisions with the customers, due to the time lag in receiving such increases, the margins were under pressure during most of the year. However, careful control of co and replacement of furniture grades by automotive grades has resulted in better profitability from operations as compared to the previous year.
Expansion Plans
To cater to the
increasing demand from existing customers and emerging potential of new
entrants in the Pune hub for automotives, the company has decided to put up a
new facility at Jejuri Industrial Estate, located approximately 60 kms. from
Pune. This facility will have an initial capacity of 6000 TPA which will
subsequently be scaled up.
The company has also
been shortlisted as the preferred supplier of Reinforced Thermoplastic
Compounds for the "Small Car Project" of M/s. Tata Motors Limited.
The company is evaluating and taking steps to service this new application in
an optimal manner.
The Capital
expenditure on these projects is expected to be Rs. 150.000 millions over the
next two years.
Management’s Discussion
and Analysis Report
Introduction
The objective of
this report is to present the Management's perception of the various
developments in the business environment, challenges and opportunities before
the company as well as to provide an analysis of the Company's performance
during the year under review. This report also summarises the Company's
internal control measures and significant developments in the Human Resources
front. It should be read in conjunction with the Directors' Report to the Shareholders,
Financial Statements and Notes thereon included elsewhere in this Annual
Report.
Macro-Economic
Scenario
The economy
maintained its momentum by registering a GDP growth above 9%. The consequential
rise in inflation saw a swift response with the Reserve Bank of India adopting
a tight monetary policy to contain it, although with partial success.
This had its
expected impact on liquidity and the rising interest rates have impacted the
growth in several segments particularly housing, consumer goods and the
automotive sector. Although there is a reduction seen in the inflationary
growth in this year, there is a pronounced impact on growth prospects of most
segments in the manufacturing sector.
The growth in
exports is also likely to be impacted by the strength of the Rupee against the
Dollar. However, it appears that most sectors of industry are implementing
various measures to remain competitive and forecasts do not predict a
recessionary trend this year.
Performance Of
Automobile Sector
The passenger car
industry, which is a major consumer of modified polypropylene compounds,
recorded a growth of 20.6% for the FY 2006-07. The mid sized car segment also
grew by 48% year-on-year, reflecting the higher purchasing power of the
consumer arising out of the strong economic growth.
For the current
year, various car manufacturers are continuing with their efforts to launch new
models in the race
for market share.
New entrants like Renault, Nissan and Volkswagen are also entering the Indian
Automobile market with manufacturing facilities. Commercial vehicle
manufacturers are also working on new models which will use modified
polypropylene compounds for interiors. This development will facilitate the
company to develop applications in this segment.
Company Performance
Operations
During the year, the
company recorded a 23% growth in sales value, while volume increase was only
marginal. During the year, the company decided to consolidate and improve its
margins by exiting the furniture segmentcompletely and focus predominantly on
the automotive sector. During last year, this exposure increased to around
90%of sales. Suitable modifications were made in the production lines to align
with the strategy to maximise production of automotive compounds. During the
year under review, polypropylene cost skyrocketed to record levels during the
period May'06 and September'06. Through sustained negotiations with automotive
OEMs, the company was able to get price corrections for its products to at
least partially cover this increase in raw material cost. The prolonged
negotiations with the Tier 1 customers and the OEMs (in many cases) had its
impact on the company's margins.
In order to
eliminate waste and reduce slack, the company focused on all aspects of the
business cycle, particularly in inventory control of raw materials and finished
goods with suitable corrections and modifications in production and supply
schedules. The company has integrated these solutions in its operations to
achieve better working capital turns and reduce the interest cost burden.
Negotiations were also held with customers to substantially reduce receivables.
This is an area which will continue to receive attention this year as well.
Quality Initiatives
The company made
good progress to qualify for compliance with ISO 14001 and will complete the
exercise during
the current
financial year.
Technology Upgradation
The company is
closely working with both OEMs and Tier 1 vendors to develop compounds for-the
new range of passenger vehicles to be launched in the current and subsequent
years. To support this, the" infrastructure in R and D will be further
upgraded.
Human Relations
Industriaf relations with employees remained cordial during the year. Human Resource Development activities continued to receive an important focus. The change processes launched in the organisation enhanced the readiness of the organisation for implementing further steps for improving competitiveness.
Business Initiatives
The company is establishing a new facility in Western region to cater to the emerging demand from the Pune hub for automotives and land in Jejuri Industrial Estate, which is reasonably close to the primary customers in this region, has been acquired. The project will have initial capacity of 6000 MTA of compounds and is expected to be in commercial production before July 2008.
The company has also been selected by its existing customer, M/s. Tata Motors Limited for supply of polypropylene compounds for their "Small Car" project. This will entail the need for suitable investments to ensure optimization of logistics and delivery costs. The company will take appropriate steps to make these investments taking all aspects into consideration.
The company expanded its trading activities in the area of value-added masterbatches which have contributed both to the top-line and profitability. Further steps are being taken to enhance the value-addition and competitiveness in this area particularly in the segment of additives and colour master batches to tap opportunities in the segments of major industrial and consumer packaging.
Financial Performance
Revenues
The company recorded
23% growth in sales revenues. Whilst the Thermoplastic Elastomer Compounds business
clocked a healthy 57% growth for the year, the Reinforced Polypropylene
compounds segment achieved a growth of 22% in the auto compound segment.
However, the Company decided to exit the furniture segment consciously in view
of the poor price realisations and hence the overall growth in tonnage was not
similar. Consequent upon this exit from the domestic furniture segment, export
of furniture compounds also dwindled.
The trading activity
for master batches recorded a satisfactory first year of operations. During the
year, the company was appointed as a Non-exclusive Distributor for the
'Santoprene' range of thermoplastic elastomer compounds. Initial commercial
entry was achieved during the year.
The performance of
the Pultrusion division has been inadequate due to changes in market
conditions. The company is now focussing on developing applications in the
infrastructure area for these products.
Costs
Polypropylene
recorded very volatile price movement during the year and also achieved its
peak pricing. Although the company requested its customers for price revisions
to compensate this extra-ordinary cost increases, they were only partially
granted after prolonged negotiations and delays and consequent to this, there
has been certain margin erosion.
The Wind Energy
Generator installed to mitigate higher energy cost performed satisfactorily
during the year. Based on the higher consumption, the company commissioned a
second Wind Energy Generator whose benefits are expected to accrue from the
current financial year onwards.
Interest Cost
M/s. ICRA Limited,
the rating agency, renewed its "A1" rating to the company for the
short term borrowing programs, for a higher quantum of Rs.15 Crores. However, the
continued hardening of interest rates during the year has increased the overall
interest cost which was further compounded by additional working capital
requirements arising out of the need to maintain higher levels of inventory to
hedge against raw material price and availability fluctuations and delays in
finalisation of sale price revisions.
The operating
margins have however benefited by the control on various costs, wastage
reduction, better projection of customer grade requirements etc.
On Going
Initiatives and Future Outlook
The
expansion in production from major OEM customers resulting in volume increases
and management of supply chain and logistics should help in protection of
margins during the current year subject of course to the price behaviour of
Polypropylene
Control
of receivables should also contribute to the reduction of working capital
requirements leading to a reduction in interest costs. There will be additional
impact of interest due to the term loan being taken for implementation of the
Pune project.
Contingent
Liabilities
|
|
31.03.2007 (Rs. In millions) |
31.03.2006 (Rs. In millions) |
|
Letter of Credit |
44.096 |
42.724 |
|
Commitment on capital accounts |
0.259 |
1.480 |
|
Customs duty on materials in bond |
1.490 |
0.962 |
|
Income Tax disputed in appeal |
3.138 |
3.138 |
|
Excise duty and service tax disputed in
appeal |
0.332 |
0.062 |
|
In respect of the applicability of set off
of entry tax paid against TNGST and CST payable in Tamilnadu Nadu for the years
2003-04 and 2004-05, not allowed by the assesting officer amounting to Rs.
8.296 millions and for which the company had obtained an interim stay from
the High Court of Madras, the high court on the basis of other appeals have
quashed the “Tamil Nadu Tax on Entry of Goods into local areas act 2001”.
Pending revision of the assessment for the above years in view of the
judgement of the High Court of Madras, this amount has not been provided for. |
|
|
Fixed Assets
v
Freehold Land
v
Buildings
v
Leasehold Land
v
Plant and Machinery
v
Research and Development
v
Electrical Instasllation
v
Techniocal Know-How
v
Furniture Fixtures and Office Equipments
v
Vehicles
As Per Website
Details :
Mission
v
To be the leading Thermoplastic Compounder in India by consistently
exceeding Customer's Expectations with innovative and high quality products and
services
Vision
v
To be the market leader in supply of polymer compounds to the automotive
and domestic appliance industries in India.
v
Satisfy all their key stakeholders.
v
Become an employer of choice in the industry by deploying progressive HR
practices and providing opportunities for employees for career and personal
development.
Website
Details :
News and
Events
Hydro S and S Stall at the
Plast India Exhibition, New Delhi.
Technical Session on Thermoplastic Elastomers conducted at
Chennai with Advanced Elastomers Systems (AES)
Mr. Joseph Halberstam, MD,
Tosaf Compounds Limited,ISRAEL, during visit to their manufacturing location.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
The 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.
The 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. 43.34 |
|
UK Pound |
1 |
Rs. 86.53 |
|
Euro |
1 |
Rs. 68.54 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|