MIRA
INFORM REPORT
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Report Date : |
03.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
ABR ORGANICS LIMITED |
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Registered Office : |
2/2/3/B/7/1, Durga Bhai Deshmukh Colony, Near Sivam, Hyderabad – 500 007,
Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
22.02.1990 |
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Com. Reg. No.: |
01-11040 |
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CIN No.: [Company
Identification No.] |
U24134AP1990PLC011040 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDA00944G |
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PAN No.: [Permanent
Account No.] |
AABCA6540M |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing & Exports of Thermally stables polyimides & Special Grade Phenolics for Aerospace & Defence Applications. The company also synthesis & manufacture specialty polymers & chemicals in bulk. Manufacturers of Monomer for ABS & SB Rubber. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
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Maximum Credit Limit : |
USD 30000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. It has some accumulated losses. Even through the company’s profitability is improving, it may take some time for them to wipe-off the accumulated losses. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. Krishna Ravuri |
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Designation : |
Loason Officer |
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Date : |
27.08.2008 |
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Name : |
Mr. Venkatesh |
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Designation : |
Accountant |
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Date : |
27.08.2008 |
LOCATIONS
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Registered Office : |
2/2/3/B/7/1, Durgabhai Deshmukh Colony, Hyderabad– 500
007, Andhra Pradesh, India |
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Tel. No.: |
91-40-27426059 |
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Fax No.: |
91-40-27426059 |
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E-Mail : |
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Website: |
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Research & Development : |
Shed No.14, IDA, Mallapur, R.R. District, Hyderabad – 500 076 |
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Tel. No.: |
91-40-27170642 |
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Factory : |
Shed No. 14 & 15, IDA, Mallapur, R.R. District, Hyderabad – 500 076 |
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Tel. No.: |
91-40-27170642 |
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Administrative Office: |
A3, Sri Madhava Apartments, 2-2-23/41/4 & 5, Bank Colony, Bagh Amberpet, Hyderabad – 500 013, Andhra Pradesh, India. |
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Tel. No.: |
91-40-27426059 / 65575981 / 27170642 |
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Fax No.: |
91-40-27426059 |
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E-Mail : |
DIRECTORS
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Name : |
Dr. Vijayachander Rao |
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Designation : |
Managing Director |
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Address : |
C-50, 2/2/3/B/7/1, Durgabhai Deshmukh Colony, Hyderabad, Andhra Pradesh – 500 017, India |
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Date of Birth/Age : |
18/02/1934 |
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Date of Appointment : |
04/04/2006 |
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Name : |
Mr. K. Naveen Chandra |
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Designation : |
Managing Director |
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Address : |
C-50, 2/2/3/B/7/1, Durgabhai Deshmukh Colony, Hyderabad, Andhra Pradesh – 500 017, India |
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Date of Appointment : |
29.05.2006 |
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Other Directorship : |
Aromatic Polyimides Private Limited U24119AP2003PTC040831 |
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Name : |
Mr. S. T. Mainkar |
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Designation : |
Director |
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Address : |
Flat No. 404, Classic Elegant Apartments, Kutbiguda, Hyderabad, Andhra Pradesh – 500 017, India. |
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Date of Birth/Age : |
15/01/1929 |
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Date of Appointment : |
20/05/1999 |
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Name : |
Dr. Dinesh Bothra |
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Designation : |
Director |
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Address : |
No. 6, Mantri Kishore, Park Bhosale Nagar, Pune, Maharashtra |
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Date of Birth/Age : |
01/06/1967 |
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Date of Appointment : |
02/03/2001 |
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Name : |
Mr. K. Vani Naveen |
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Designation : |
Whole Time Director |
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Address : |
C-50, 2/2/3/B/7/1, Durgabhai Deshmukh Colony, Hyderabad, Andhra Pradesh – 500 017, India |
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Date of Birth/Age : |
18.02.1934 |
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Date of Appointment : |
04.04.2006 |
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Other Directorship : |
Aromatic Polyimides Private Limited U24119AP2003PTC040831 |
KEY EXECUTIVES
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Name : |
Mr. K. Naveen Chandra |
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Designation : |
Executive Director |
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Name : |
Mr. Ravuri Krishna |
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Designation : |
Export Manager |
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Name : |
Mr. M. Krishna Prasad |
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Designation: |
Purchasing Manager & administrative |
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Name : |
Mrs. K. Vani Naveen |
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Designation : |
Works Manager & Q. C. Incharge |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Equity shares Breakup (percentage of total equity)
(As on 30.09.2006)
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Category |
Percentage |
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Bodies Corporate |
4.32 |
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Directors or relatives of directors |
73.87 |
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Other top fifty (50) shareholders |
21.81 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing & Exporters of Thermally stables polyimides & Special Grade Phenolics for Aerospace & Defence Applications. The company also synthesis & manufacture specialty polymers & chemicals in bulk. Manufacturers of Monomer for ABS & SB Rubber. |
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Products : |
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Exports : |
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Countries : |
United State, United Kingdom, Denmark, Lithuania, Korea, Republic
of (South Korea) |
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Imports : |
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Products : |
Raw Material |
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Countries : |
China and Japan |
PRODUCTION STATUS
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Particulars |
Licensed Capacity |
Installed Capacity |
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ABRON R 750 |
10 tpa |
8 tpa |
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ABRON S 10 |
12 tpa |
12 tpa |
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ABRON PR 100 |
80 tpa |
60 tpa |
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ABRON NPNA |
10 tpa |
10 tpa |
GENERAL
INFORMATION
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Customers : |
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Bankers : |
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Facilities : |
CC Rs.2.300 millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Shriram Narayan Associates Chartered Accountant |
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Address : |
No. 3-4-526/20, Barkatpura, Hyderabad – 500 013 |
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Tel. No.: |
91-40-27550251 / 27550252 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
752020 |
Equity Shares |
Rs. 10/- each |
Rs. 7.520 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
7.520 |
7.520 |
7.520 |
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2] Share Application
Money |
2.134 |
4.247 |
3.649 |
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3] Reserves &
Surplus |
3.416 |
3.416 |
0.416 |
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4] (Accumulated
Losses) |
(7.330) |
[12.600] |
(32.483) |
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NETWORTH
|
5.740 |
2.583 |
(20.898) |
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LOAN FUNDS |
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1] Secured Loans |
1.734 |
4.122 |
27.491 |
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2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING
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1.734 |
4.122 |
27.491 |
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DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL
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7.474 |
6.705 |
6.593 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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5.121 |
5.452 |
6.044 |
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Capital work-in-progress
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0.000 |
0.000 |
0.000 |
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INVESTMENT
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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
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1.253
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3.448 |
3.241 |
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Sundry Debtors
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4.749
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0.463 |
0.498 |
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Cash & Bank Balances
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0.064
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0.129 |
0.056 |
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Other Current Assets
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0.000
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0.000 |
0.000 |
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Loans & Advances
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0.770
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0.165 |
0.159 |
Total Current Assets
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6.836 |
6.015
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4.205 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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4.289
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3.656 |
3.116 |
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Provisions
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0.194
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0.000 |
0.000 |
Total Current Liabilities
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4.483 |
4.762
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3.656 |
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Net Current Assets
|
2.353 |
1.253
|
0.549 |
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MISCELLANEOUS EXPENSES
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0.000 |
0.000 |
0.000 |
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TOTAL
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7.474 |
6.705 |
6.593 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
33.983 |
20.363 |
7.974 |
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Other Income |
0.080 |
0.049 |
0.051 |
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Total Income |
34.063 |
20.412 |
8.025 |
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Profit/(Loss) Before Tax |
5.270 |
(0.007) |
(0.015) |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
5.270 |
(0.007) |
(0.015) |
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Imports : |
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Total Imports |
0.000 |
0.000 |
USD 1080 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
0.000 |
5.979 |
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Material Consumed |
21.958 |
14.550 |
0.000 |
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Salaries, Wages, Bonus, etc. |
1.956 |
1.216 |
0.000 |
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Payment to Auditors |
0.015 |
0.015 |
0.000 |
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Interest |
0.297 |
0.074 |
0.000 |
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Insurance Expenses |
0.061 |
0.021 |
0.000 |
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Power & Fuel |
0.394 |
0.573 |
0.000 |
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Depreciation & Amortization |
0.432 |
0.422 |
0.000 |
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Other Expenditure |
3.680 |
3.548 |
2.061 |
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Total Expenditure |
28.793 |
20.419 |
8.040 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
15.47 |
(0.03)
|
(0.19) |
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Net Profit Margin (PBT/Sales) |
(%) |
15.51 |
(0.03)
|
(0.19) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
44.07 |
(0.06)
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(0.15) |
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Return on Investment (ROI) (PBT/Networth) |
|
0.92 |
(0.00)
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(0.00) |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.08 |
3.44
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(1.49) |
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Current Ratio (Current Asset/Current Liability) |
|
1.52 |
1.26
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1.15 |
LOCAL AGENCY
FURTHER INFORMATION
Form No. 8
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Corporate
identity number of the company |
U24134AP1990PLC011040 |
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Name of the
company |
ABR ORGANICS LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
C-50, 2/2/3/B/7/1, Durgabhai Deshmukh Colony, Hyderabad,
Andhra Pradesh – 500 017 |
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This form is for |
Modification of charge |
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Type of charge |
Hypothecation |
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Particular of
charge holder |
State Bank of India, Amberpet Branch, Sivam Road, Hyderabad – 500013. Andhra Pradesh, India |
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Nature of
instrument creating charge |
Agreement for the
goods of Small Industrial Advances 16.02.2003 of Cash |
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Date of
instrument Creating the charge |
16.02.1993 |
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Amount secured by
the charge |
Rs.4.100 Millions
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Brief of the
principal terms an conditions and extent and operation of the charge |
Interest @ 19.75
% |
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Description of
the property charged indicating whether it is a charged on |
·
Stock in
trade ·
Book debts |
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Charge
identification number of the charge to be modified |
02.03.1993 |
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Brief description
of the instrument modifying the charge under section 135 |
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Particulars of the
present modification |
Deposit of title
deeds. |
FIXED ASSETS:
- Land & side Development
- Factory Building
- Plant & Machinery
- Furniture
- Computers
- Plant & Machinery- Net (ABR Research Labs)
AS PER WEBSITE
Subject was founded
in 1991 by scientists formerly employed at Indian Space Research Organization (ISRO). With the license from
ISRO and financial assistance from Industrial Development Bank of India, the
company started manufacturing polyimide resins at Hyderabad, Andhra Pradesh,
India. The core competence of the company is Research & Development,
wherein a team consisting of highly qualified chemists, engineers and
technologists are always at work constantly to develop newer grades of
polyimides and their applications.
Dr. K. V. C. Rao , the Vice Chairman & Managing Director, is an eminent polymer
scientist with over three decades of research experience. Also an ISRO man, he
has won several awards for the VIKRAM
SARABHAI SPACE RESEARCH CENTRE, for development work. Dr. Rao has
inculcated the habit of uncompromising quality into the company.
Dr. Dinesh Bothra, A
'Doctor of Philosophy' in Chemical
and Biochemical Engineering, from Lehigh University, Bethlehem, PA, USA, is one the Directors of ABROL, and extends his valuable
experience in providing a direction to the organisation.
Dr. V. J. Rao, leads a team of scientists at ABR Research
Laboratories, wherein research on the Hydrogen Generation & Storage are
being studied. Dr. Rao also extends his expertise on Nano Particles,
Semi-conductors, Inorganics & Gas Senors for inflammable and toxic gases to
ABR Research Laboratories.
A highly qualified and dedicated team is in charge of quality management, who
keep a constant vigil right from the incoming raw materials to outgoing
products. The fact that ABRON polymers have been accepted for critical space,
aerospace and defense applications, itself speaks of the high quality standards
being maintained in the factory.
Department of Scientific and Industrial Research, Government of India, has
recognised the R & D efforts of the company in the field of polyimides and
phenolic resins. Efforts in R & D have culminated in developing many grades
of polyimide resins, monomers, reactive diluents and special grades phenolic
resin. The company also undertakes contract research at its R & D Center.
Continuous Research & Development backed by stringent quality control in
manufacture are the supporting pillars of ABROL production philosophy.
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.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 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
34 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|