MIRA INFORM REPORT

 

 

 

Report Date :

28.07.2008

 

IDENTIFICATION DETAILS

 

Name :

METROPOLITAN EXIMCHEM LIMITED

 

 

Registered Office :

5 Meghdoot 283, Flank Road, Sion [East], Mumbai – 400022, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

01.08.1968

 

 

Com. Reg. No.:

11-14067

 

 

CIN No.:

[Company Identification No.]

L19202MH1968PLC014067

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM21576C

 

 

PAN No.:

[Permanent Account No.]

AAACM9514C

 

 

Legal Form :

Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturing and Marketing of Dyes Intermediates.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 1629500

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track.  Financial position is good.  Payments are usually correct and as per commitments.  The company is doing steady business.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

 

INFORMATION PARTED BY

 

Name :

 

Date :

25.07.2008

 

 

LOCATIONS

 

Registered Office :

5 Meghdoot 283, Flank Road, Sion [East], Mumbai – 400022, Maharashtra, India

Tel. No.:

91-22-24081528 / 24081529

Fax No.:

91-22-24077375

E-Mail :

metrosun@bom3.vsnl.net.in

Website :

http://www.metrosun.com

 

 

Head Office :

Lot No. B, CFC, Phase – 2, MIDC, Dombivli – 421204, Thane, Maharashtra, India

Tel. No.:

91-251-2870808 / 2872358 / 2872360

Fax No.:

91-251-2870975

 

 

DIRECTORS

 

Name :

Mr. Rajiv Nagin Sheth

Designation :

Director

Address :

S/145-B, Padmalaya,Sion (West), Mumbai – 400022, Maharashtra

Date of Birth/Age :

05.11.1964

Date of Appointment :

02.07.1993

 

 

Name :

Mr. K. Ganesh Narayan

Designation :

Director

Address :

C – 18, Shantidana M M Road, Mulund (West), Mumbai - 400080, Maharashtra

Date of Birth/Age :

24.12.1949

Date of Appointment :

02.07.1993

 

 

 

 

Name :

Mr. Nagin Padamshi Sheth

Designation :

Director

Address :

9 – 140, Jashwanti Niwas, Sion (West), Mumbai, Maharashtra

Date of Birth/Age :

24.01.1933

Date of Appointment :

23.08.2001

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2005

 

Names of Shareholders

 

No. of Shares

Mr. Nagin P. Shah

 

27753

Mrs. Urmila N. Sheth

 

25121

Smt. Roopa R. Sheth

 

25561

Mr. Rajiv N. Sheth

 

43065

Mr. K. Ganesh Narayan

 

17900

Smt. Sundari G. Narayan

 

100

Sunbeam Monochem Private Limited

 

2000

Mrs. Urmila N. Sheth

 

8500

TOTAL

 

150000

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and marketing of Dyes Intermediates.

 

 

Products :
  • Sluphonations Using

Liquid Sulfurtrioxide

            2.65% / 25% Oleum

Sulfuric Acid

 

  • Chlorosulphonation Using

Chlorosulfonic Acid

Thionyl Chloride

 

  • Nitrations Using

98% Nitric Acid

Solvent & Nitric Acid

 

  • Aminations by Reducing Using

Fe/Acid

Sodium Polysulfide

Hydrazine

Proprietory Reducing Agent Developed in R & D House

 

  • Amination by Ammonia under High Pressure

 

  • Alkali Fusion at High Pressure and Temperature

 

  • Halogenations Using

Using Chlorine Gas

Using Hydrogen Peroxide/HCL

 

  • Friedel-Crafts Reaction

 

  • Oxidations Using

Special Catalyst

Nitric Acid

 

  • Alkylations Using

Alkyl Chloride/Alkylsulfate

Nuclear Alkylations

 

  • Functional Group Protection

Formylation

Acetylation

 

  • POCI3 & PCI3 Reactions

 

  • Ureidation and Urea Fusion

 

  • Diazo-Coupling Reactions

 

  • Cyclisation

 

  • Hoffman Degradation

 

  • Condensations

 

 

GENERAL INFORMATION

 

No. of Employees :

About 150

 

 

Bankers :

Union Bank of India, 109, Khand Bazar, Mumbai - 400 003

 

Canara Bank

Mandvi Branch, Mumbai – 400 003, Maharashtra

 

Indian Overseas Bank

 

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

Sheth Doctor & Associates

Chartered Accountants,

Address :

24, Navjivan Commercial Premises Co-operative Society, 11th Floor, Lamington Road, Mumbai Central, Mumbai – 400008, Maharashtra, India

Tel. No.:

91-22-23020050

Fax No.:

91-22-55715917

E-Mail :

shethdoctor@mtnl.net.in

 

 

Associates/Subsidiaries :

 

Name :

Address :

Tel No.:

Tele Fax :

 

 

Sunbeam Monochem Private Limited

A / 72, Phase 1, MIDC, Dombivili – 421204, Thane, Maharashtra, India

91-251-2470285

91-251-2470285

 

Sunbeam Monochem, the parent company of Metropolitan Eximchem Limited, started its manufacturing operations in 1975, producing sulphonated products. Since then, we have expanded rapidly, adding a number of new products to our line, and in the process, establishing ourselves as a name to be reckoned with in the Indian dyes intermediates manufacturing industry. Our growth has been characterized by innovative products from our R & D department (to date, we have developed and produced over 100 products comprising of intermediates for dyes, pigments, pharma, plastics as well as cosmetics). A strong commitment to quality, and above all, unsurpassed customers service.

 

It began exporting our speciality products, mainly to start with dyes Intermediates to a number of countries around the world in 1984, and have now exported it’s products throughout the globe constitute a significant majority of business now, and is further dominated by custom synthesis. It’s customers include world-leading majors.

 

Status:


The company have now two manufacturing units with 3 plants and a combined capacity of 2000 Metric Tons per Annum. Metropolitan Eximchem Limited, build with the latest technology in 1996 enabled to substantially increase production rate, enable us to develop new products with a shorter development time, reduce costs, and to compete in the global economy. In near future, the manufacturing process at this plant will also be ISO 9000 certified. In short, it will empower our transition into the 21st Century.

 

At Metropolitan Eximchem are proud of achievements to date. The company has earned reputation through innovative products, superb quality control, timely delivery, and customer service.

 

Technical Information:


Metropolitan Eximchem Limited, the company have established not only as Govt. recognized R & D house but also as one of the key niche players in the Indian speciality chemical industry. It’s wide products range intermediates increased our manufacturing capabilities by high order of magnitude, to further consolidate our position as a leading manufacturer of speciality chemicals for custom synthesis. For the production of our user’s high-quality chemical products, Metropolitan Eximchem Limited provides superior technology and consulting services, in addition to top-quality intermediates suited to our needs, receiving highly favourable responses from our customers in return.

 

Questions you may encounter in the R & D phase such as –

"Can an intermediate if this kind be made?’

"What is a lot size?" "At what price?" or

"When will delivery be?"

may be referred to Metropolitan Eximchem Limited

 

Ř       Sanraj International

Ř       Bhoomija Private Limited

Ř       Solar Interchem Private Limited

Ř       Sunbeam International

 

 

Name :

Melog Speciality Private Limited

Address :

N – 5, Additional Ambarnath, MIDC, Ambarnath – 421501, Thane, Maharashtra, India

Tel No.:

91-251-2621257 / 2621161 / 2520148

Tele Fax :

91-251-2620011

 

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2005

 

Authorised Capital :

No. of Shares

Type

Value

Amount

250000

Equity Shares

Rs.100/- each

Rs. 25.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

150000

Equity Shares

Rs.100/- each

Rs.15.000 millions

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

15.000

15.000

15.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

310.900

275.100

278.555

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

325.900

290.100

293.555

LOAN FUNDS

 

 

 

1] Secured Loans

02.600

10.300

1.388

2] Unsecured Loans

17.000

12.600

1.485

TOTAL BORROWING

19.600

22.900

2.873

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

345.500

313.000

296.428

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

56.800

55.500

43.345

Capital work-in-progress

03.200

0.000

8.940

 

 

 

 

INVESTMENT

135.500

138.600

151.497

DEFERREX TAX ASSETS

0.000

0.000

0.354

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
51.400
51.400
52.588

 

Sundry Debtors
68.000
51.500
32.883

 

Cash & Bank Balances
32.200
06.000
14.946

 

Other Current Assets
0.000
0.000
0.000

 

Loans & Advances
80.300
76.400
54.427

Total Current Assets
231.900

185.300
154.844

Less : CURRENT LIABILITIES & PROVISIONS
 

 
 

 

Current Liabilities
26.600
27.100
62.552

 

Provisions
55.300
39.300
0.000

Total Current Liabilities
81.900

66.400
62.552

Net Current Assets
150.000

118.900
92.292

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

345.500

313.000

296.428

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

351.200

204.600

190.200

Other Income

05.300

10.000

09.700

Total Income

356.500

214.600

199.900

 

 

 

 

Profit/(Loss) Before Tax

48.500

(1.900)

12.300

Provision for Taxation

12.700

1.600

04.700

Profit/(Loss) After Tax

35.800

(3.500)

07.76

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing Expenses

16.500

21.300

11.000

 

Administrative Expenses

12.900

12.500

12.800

 

Raw Material Consumed

217.100

148.700

120.100

 

Interest

02.800

01.100

0.400

 

Depreciation & Amortization

12.400

11.900

10.500

 

Other Expenditure

46.300

21.000

32.800

Total Expenditure

308.000

216.500

187.600

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
10.04

(01.63)
4.08

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
13.80

(00.92)
6.19

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
11.34

(00.50)
3.44

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
14.88

(00.65)
0.04

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
31.14

30.78
0.22

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
2.83

2.79
2.47

 

 

 

 

 

 

 

 

 

 

 

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Debt-Equity Ratio

0.07

0.04

0.01

Long Term Debt-Equity Ratio

0.07

0.04

0.01

Current Ratio

2.77

2.64

2.72

TURNOVER RATIOS

 

 

 

Fixed Assets

1.79

1.14

1.14

Inventory

6.83

3.93

4.17

Debtors

5.88

4.85

6.12

Interest Cover Ratio

18.32

(4.64)

20.25

Operating Profit Margin(%)

18.14

3.32

9.78

Profit Before Interest And Tax Margin(%)

14.61

(2.49)

4.26

Cash Profit Margin(%)

13.72

2.15

7.89

Adjusted Net Profit Margin(%)

10.19

(3.67)

2.37

Return On Capital Employed(%)

15.58

(1.67)

2.77

Return On Net Worth(%)

11.62

(2.57)

1.55

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Web Detail Attached:

History :

 

Subject was originally established in the year 1962.

 

The company was incorporated on 1st August, 1968 at Mumbai in Maharashtra under the name and style of Metropolitan Foot Wear Industries Private Limited having Company Registration Number 14067.

 

On 8th June, 1994, the name of the company was changed to Metropolitan Exim Chem Private Limited. On 1st July, 1998 the company was converted into a deemed public limited liability company and the name was changed to present.

 

Present Status :

 

They have now two manufacturing units with 3 plants and a combined capacity of 2000 Metric Tons per Annum. Subject, Build with the latest technology in 1996 enable them to substantially increase their production rate, enable them to develop new products with a shorter development time, reduce cost, and to complete in the global economy. In near future, the manufacturing process at this plant will also be ISO 9000 certified. In were as they have obtained the certificate long back. 

Operations :

 

During the year the company achieved turnover of Rs. 199.639 millions as against Rs. 244.104 millions in the previous year.  The turnover has been reduced mainly due to competition from materials of Chinese origin priced at much lower rate than the company can offer, also as a result company was forced to stop production of 2 of its bulk going products.  The Directors hope that this situation shall improve during the current year and company’s business starts growing like before.

 

Company invested Rs. 56.676 millions in Share Capital of Melog Speciality Chemicals Private Limited during the financial year.

 

Generic Names of the Principal Products/Services of the company are :

 

Item Code No.

 

Product Description

292145-19

K-Acid

292151-09

MUA

292145-19

STA

 

It is in trade terms with :-

 

Advani Ceramics, India

Allied Industries, India

Cheminova International, India

Dipeeh Engineering Works, India

ICG Company Limited, India

MC Cleland Engineering Private Limited, India

 

Fixed Assets

 

Factory Building, Plant & Machinery, Air Conditioners, Electric Installation, Furniture, Fixtures & Office Equipments, Motor Cars & Vehicles

 

WEBSITE DETAILS

 

ABOUT THEM

 

Subject has an enviable record of anticipating the requirements of a growing, more sophisticated market place and designing and developing new products that closely match its customer's needs and applications. In both traditions, materials and its broad range of new speciality high-added value chemicals. Metropolitan is setting goals and achieving them, with manufacturing experience of 25 years.

They have now two manufacturing units with a combined capacity of 1700 Metric Tons Per Annum. Of these, one plant has been recently commissioned, with a capacity of 1300 MTPA. This plant, built with the latest technology and with added environmental safety features, will enable them to substantially increase their production rate, enable them to develop the products with a shorter development time, reduce their costs, and enable them to compete in the global economy. In the very near future, the manufacturing process at this plant will also be ISO 9000 certified. In short, it will empower their transition into 21st Century.

They at metropolitan are proud of their achievements to date. They have earned their reputation through innovative products, superb quality control, timely delivery, and customer service. They are looking forward to serving the needs of global dyes, pigments and plastic industries.

 

 

Subject as require to be maintained under the companies Act, 1956 (the Act) and the rules made there under and also the previous contained in the Memorandum and Article of Association of the Company for the Financial Year ended 31st March, 2007, (Financial Year). In our opinion and to the best of our information and according to the examination carried out by us and expiation furnished to us by the company, its officers and Agents, we certified that in respect of the aforesaid financial year:

 

  1. the company has kept and maintained all registered as started in Annexure ‘A’ to the certificate as per the previous of the Act and the Rules made there under and all entries therein have been duly recorded.

 

 

  1. Expert form No. 8, the company has duly file the form and return as started in Annexure ‘B’ to this certificate, with the register of the companies, Maharashtra, Mumbai within the time prescribe under the act and the rules made there under.

 

 

  1. The Company being a Public Limited Company, Comments are not required.        

 

 

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.42.23

UK Pound

1

Rs.83.88

Euro

1

Rs.66.41

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

63

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions