MIRA
INFORM REPORT
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Report Date : |
24.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
DAIKAFFIL CHEMICALS INDIA LIMITED |
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Registered Office : |
52 Nariman Bhavan, Nariman Point, Mumbai – 400 021, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
19.06.1992 |
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Com. Reg. No.: |
67309 |
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CIN No.: [Company
Identification No.] |
L24114MH1992PLC067309 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD04122G |
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PAN No.: [Permanent
Account No.] |
AAACD0555A |
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Legal Form : |
Public Limited Liability company. The company’s shares are listed on the Stock Exchange. |
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Line of Business : |
Manufacturers of Organic Intermediates and Optical Brightners. |
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 200000 |
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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. |
INFORMATION PARTED
BY
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Name : |
Mr. Mohan |
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Designation : |
Import Export Manager |
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Date : |
23.06.2008 |
LOCATIONS
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Registered/ Factory : |
Plot No. E/4, M.I.D.C., Tarapur, Boisar, Dist. Thane-401506, Maharashtra, India |
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Tel. No.: |
91-2525-272674 |
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Fax No.: |
91-2525-273660 |
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E-Mail : |
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Corporate Office: |
52 Nariman Bhavan, Nariman Point, Mumbai – 400 021, Maharashtra,
India. |
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Tel. No.: |
91-22-202 1368 / 202 5004 |
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Fax No.: |
91-22-202 7839 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Amit J Patel |
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Designation : |
Chairman |
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Date of Birth/Age: |
53 Years |
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Qualification: |
Graduate |
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Name : |
Mr. Sishir R Amin |
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Designation : |
Managing Director |
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Name : |
Mr. Jayant G Patel |
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Designation : |
Director |
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Date of Birth/Age: |
84 Years |
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Qualification: |
Graduate |
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Name : |
Mr. Yoshiaki Tagami |
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Designation : |
Director |
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Name : |
Mr. Sudhir M Patel |
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Designation : |
Director |
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Name : |
Mr. Jagdish J Vasa |
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Designation : |
Director |
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Name : |
Mr. Aditya A Patel |
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Designation : |
Alternate Director to Yoshiaki Tagami |
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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Indian Promoters |
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Individuals /HUF |
1498949 |
28.55 |
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Bodies Corporate |
503300 |
9.59 |
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Foreign
Promoters |
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Bodies Corporate |
245000 |
4.67 |
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Institutions |
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Mutual Funds / UTI |
1500 |
0.03 |
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Financial Institutions / Banks |
7900 |
0.15 |
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Non Institutions |
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Bodies Corporate |
563561 |
10.73 |
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Individuals |
2335489 |
44.48 |
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Clearing Member(s) |
1 |
0.00 |
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Non Resident Indians |
94600 |
1.80 |
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Total |
5250300 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Organic Intermediates and Optical Brightners. |
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Products : |
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Exports : |
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Countries : |
All over the world |
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Imports : |
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Products : |
Chemical |
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Countries : |
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Terms : |
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Selling : |
Credit [30 days to 90 days] |
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Purchasing : |
Credit [30 days to 120 days] |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Organic Intermediates |
MT |
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900 |
188 |
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Optical Whitening Agents - Powder |
MT |
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300 |
60 |
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Optical Whitening Agents – Liquid |
MT |
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1000 |
817 |
GENERAL
INFORMATION
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Suppliers : |
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Customers : |
Wholesalers |
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No. of Employees : |
110 [In Office 20 + In Factor 90] |
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Bankers : |
Karnataka Bank Limited |
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Facilities : |
As on 31.03.2007 Secured Loans : (Rs.
In millions)
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Gaurang Merchant & Company Chartered Accountants |
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Associates : |
v Caffil Private Limited v Amichem v Tristar Corporation |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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6500000 |
Equity Shares |
Rs.10/- each |
Rs.65.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5250300 |
Equity Shares |
Rs.10/- each |
Rs.52.503
millions |
(Of the above, 242,900 shares are allotted as fully paid up for consideration
other than cash)
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 |
52.503 |
52.503 |
52.503 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
5.419 |
2.484 |
2.483 |
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4] (Accumulated Losses) |
0.000 |
[2.639] |
(5.116) |
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NETWORTH |
57.922 |
52.348 |
49.870 |
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LOAN FUNDS |
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1] Secured Loans |
8.451 |
6.650 |
9.347 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
8.451 |
6.650 |
9.347 |
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DEFERRED TAX LIABILITIES |
2.666 |
0.870 |
0.000 |
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TOTAL |
69.039 |
59.868 |
59.217 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
31.244 |
30.724 |
32.228 |
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Capital work-in-progress |
0.274 |
1.991 |
2.893 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.579 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
15.068 |
12.432 |
14.243 |
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Sundry Debtors |
34.270 |
24.194 |
21.188 |
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Cash & Bank Balances |
1.340 |
1.638 |
1.030 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
12.860 |
8.549 |
6.219 |
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Total
Current Assets |
63.538 |
46.813 |
42.680 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
24.059 |
18.970 |
18.847 |
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Provisions |
1.958 |
0.690 |
0.350 |
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Total
Current Liabilities |
26.017 |
19.660 |
19.197 |
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Net Current Assets |
37.521 |
27.153 |
23.483 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.034 |
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TOTAL |
69.039 |
59.868 |
59.217 |
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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 |
141.920 |
115.220 |
89.408 |
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Other Income |
1.668 |
1.208 |
3.267 |
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Total Income |
143.588 |
116.428 |
92.675 |
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Profit/(Loss) Before Tax |
8.638 |
4.354 |
3.122 |
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Provision for Taxation |
3.063 |
1.890 |
1.464 |
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Profit/(Loss) After Tax |
5.575 |
2.464 |
1.658 |
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Earnings in Foreign Currency : |
102.040 |
90.139 |
72.654 |
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Total Imports |
50.889 |
37.871 |
29.966 |
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Expenditures : |
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Manufacturing Expenses |
11.900 |
10.254 |
8.908 |
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Administrative Expenses |
8.388 |
6.512 |
11.018 |
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Raw Material Consumed |
91.105 |
75.238 |
57.126 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
6.055 |
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Interest |
0.609 |
1.110 |
0.997 |
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Depreciation & Amortization |
4.036 |
4.908 |
5.449 |
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Increase/Decrease in finished goods |
0.074 |
[0.059] |
0.000 |
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Other expenses |
18.838 |
14.111 |
0.000 |
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Total Expenditure |
134.950 |
112.074 |
89.553 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
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Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales Turnover |
31.700
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29.400
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34.900
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Other Income |
0.200
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0.700
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0.200
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Total Income |
31.900
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30.100
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35.100
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Total Expenditure |
28.200
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26.700
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32.700
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Operating Profit |
3.700
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3.400
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2.400
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Interest |
0.200
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0.100
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0.300
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Gross Profit |
3.500
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3.300
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2.100
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Depreciation |
1.100
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1.000
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1.000
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Tax |
0.000
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0.000
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0.000
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Reported PAT |
2.400
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2.300
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1.100
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KEY
RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
0.14 |
0.16 |
0.22 |
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Long Term Debt-Equity Ratio |
0.01 |
0.01 |
0.02 |
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Current Ratio |
1.72 |
1.59 |
1.45 |
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Fixed Assets |
1.92 |
1.59 |
1.27 |
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Inventory |
11.04 |
9.09 |
7.35 |
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Debtors |
5.21 |
5.37 |
4.93 |
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Interest Cover Ratio |
10.56 |
3.75 |
3.29 |
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Operating Profit Margin(%) |
8.86 |
8.95 |
10.71 |
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Profit Before Interest And Tax Margin(%) |
6.24 |
4.93 |
4.93 |
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Cash Profit Margin(%) |
6.24 |
6.08 |
7.60 |
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Adjusted Net Profit Margin(%) |
3.61 |
2.05 |
1.82 |
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Return On Capital Employed(%) |
15.45 |
9.93 |
7.34 |
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Return On Net Worth(%) |
10.19 |
4.76 |
3.24 |
LOCAL AGENCY
FURTHER INFORMATION
Other Details:
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Statutory Approvals |
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Income Tax Registration |
AAACD0555A |
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VAT/ TIN Registration |
27660387391V |
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Import Export Code |
0392054434 |
CONTINGENT
LIABILITIES:
The Company recognizes
a provision when there is a present obligation as a result of past events that
probably requires an outflow of resources and a reliable estimate can be made
of the amount of obligation. A disclosure for a contingent liability is a made
when there is possible obligation or present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible obligation
or a present obligation that the likelihood of outflow of resources is remote,
no provision or disclosure is made.
PERFORMANCE:
Gross sales for the year aggregated to Rs.142.000 Millions reflecting a growth
of around 23.17% over the previous year. Inflation of Inputs like Raw Materials
& Utilities during the year was slightly higher, gun impacting profitability,
though overhead were kept under control.
Profit
before Depreciation Interest & Taxes (PBDIT) for the year is high at
Rs.13.300 Millions as compared to Rs. 10.400 Millions of previous year an
increase of 28%
Profit
before Taxis at Rs. 8.638 Millions as compared to Rs.4.354 Millions of the previous year an impressive increase
of 98.39%.
M/s.
G.E. Chemical Company S.A. Luxembourg:
Despite
Special Resolution passed by the Share holders at the last Annual General
Meeting and positive recommendations byall Members of the Takeover Panel, SEBI
vide their order No VVTM/GA/1341CFO/2107 dated 5th Feb'07 rejected the
application for preferential allotment of 25.10% of the Company's Equity Share
to G. E. Cherrical Company S.A. on the Ground that Such Exemption would i4ot be
in the interest of the Shareholders.
Consequently,
the Company is Pursuing other alternatives to collaborate with G.E. Chemicals
Company S.A. Luxembourg so as to expand their production base that may require
Company's financial Participation along with active management of the proposed
new set-up.
OUTLOOK:
The Company exports
approximately 80% of its production mainly to European Union, South America and
Japan. On account of recent legislation passed by European Parliament, Indian
Chemical Industry have to bear the burden of huge additional costs arising out
of REACH as explained in this report, in order to remain in the Global
Market.
Besides
Export Trade have been hit hard dueto sudden appreciationof around 10% of the
Rupee particularly in relation to US $ and EURO.
In
response to several recommendation for the exemption made by the Union Commerce
Ministry to protect exports from ravages of the appreciating rupee, the Govt.
have now announced measures to ensure that there is no drop in exports. Under
its Policy of liberalization, the Government have reduced Import duties on many
important-Chemicals from 12.50% to 7% which is a real threat to small and
Medium Enterprises. Besides many multinational Companies have set up large
capacity plants in South East Asian Countries & China which pose intense
comnetition in export.
As
against these adverse factors, the only ray of hope is that China, which is the
most formidable competitor of sourcing for Global Players is fast loosing its supremacy
as its several Chemical factories are being closed due to high Labour costs and
environment problems. This gives the Indian Chemical Industries a fair chance
to penetrate in the vacuum thus created,and opens up opportunities for Indian
chemical companies in exports.
The
Clean-up operations of Chemical (Production in China will bring order to the
Global Chemical industry.
REACH:
The largest and most-Complex piece of legislation have been passed by
European Parliament and Council in December, 2006 which has come into force
from 1st June 2007, despite hostile opposition and huge pressure from chemical
Industry, political leaders and the USA, against the proposals that would raise
serious trade issues, and put million of jobs potentially at risk.
REACH
stands for Registration, Evaluation and Authorisation of Chemicals. The objectives are to improve the protection
of human health and environment through better and earlier identification of
hazard properties of Chemical substances. Datais mandatory for all productsto
be manufactured and/or marketed for consumption across all 25 EU member states.
Besides, its greater responsibility for the Chemical Industry to manage risks
and provide safety information. No wonder USA and all the developing Countries
firmly oppose EU's unilateral imposition of multilateral precautionary
principal based regulation such as REACH.
Registration:
Each producer and importer of chemicals in volume of 1 Ton or more per annum
have to register with a new chemical agency in Europe, giving information on
properties, uses of safe ways of having the chemicals, so as to assess
intrinsic hazards and its impact on human beings as well as environment.
Evaluation:
Through evaluation, public authorities will look into details at registration
dossiers and at substances of concern. it is expected that about 30,000
Substances will be scrutinized for animal testing and if not satisfied limit to
absolute minimum substances required to be authorised are substances which are
Carcinogenic, Mutagenic, Repro-toxic (CMRs) Persistent, Bio-accumulative and
Toxic(PST) and very Persistent and very Bio-accumulative (vPvB).
Authorization:
It means that certain manufacturers or importers will be permitted to use
certain chemicals, which are known to be of high concern. It ensure that risks
from substances of very high concern (SVHC) are properly controlled or that
they are substituted. Also look for alternatives for hazardous chemicals. It is
user specific authorization that will be required for chemicals that can cause
cancer, mutations or reproductive problems or accumulate in their bodies and
harm the environment. In all such case, authorization will be required.
Authorization
will be granted only to companies that can show that the' risks are adequately
controlled or the provision is that if social and economic benefits out-weigh
the risks or where no suitable alternatives, technology or products are known
or available for that particular application. In such case, authorization will
be given but again it is user specific with high restrictions.
MANAGEMENT
DISCUSSION AND ANALYSIS:
1) BUSINESS OF THE COMPANY
A. Information
about the Company:
Daikaffil Chemicals India Ltd. established on 19/611992, is an 16 years
old company. The main strength of the Organisation lies in its employees and
the technological superiority of the products manufactured, which enabled the
Company to maintain a steady growth over the years and also create and
establish its brand name "DIKAPHOR ' in the Industry. The Company has an
open culture with transparency in operations and a professional approach in
innovations of its products, work and processes.
Daikaffil has been consistently meeting challenges of the dynamic business,
rising costs, industry demands and competitive scenario, in order to meet
profitability and manage the resources more effectively, meeting customers
expectations at the same time.
B. How the
Industry Fared:
The Chemical Industry conitinues to do well riding high on the growth in
Textiles and Paper Sectors. GDP growth of 8.5% for the year has been supporting
and so has been the growth of 10.5% in Manufacturing and 3% in agriculture.
These are the indicators of the buoyant economy. Only concern has been the
inflation, which has been hovering around 6%.The Raw material prices for the
majority of the period in this year have been on a rise.
Sales growth for DAIKAFFIL has been in fine with the Industry growth. The
growth this year is led by Textile and Paper business. The management therefore
looks to the future with confidence, even though there is increasing
competition from other Chemical Companies especially from China.
C. SWOT Analysis:
The Company continues to identify gaps in the customers needs as well as
the industrial demands of its Brighteners both for Textiles and Paper and has
been expanding its brand portfolio. Value additions, customer responsiveness
and satisfaction are keys to performance and for retaining the, market share.
Delivering the products at the prices which are competitive, inspite of rise in
Raw Material cost and still maintain profitability is ar ongoing challenge
requiring a continuous working on improving internal operational efficiencies.
Daikaffil has been therefore continuously working in the areas of product improvements,
innovation in products and services. Various Brighteners have been offered
addressing the needs of the Industry both on quality and price.
There is a growing competition visible with more and more players entering the
industry and the way business is transacted getting redefined.
D. Segment wise performance:
The Company has only one segment of activity namely "Dyes /Optical
Whitening Agents" in accordance with the definition of "Segment"
as per the Accounting Standard 17 issued by the Institute of Chartered
Accountants of India. The performance of the Company is discussed separately in
this report.
E. Risks & Concerns:
Macro economic conditions do affect the Company operations as is the
industry. Low demand, political instability, natural calamities may affect the
business. Business therefore cannot be risk free. What is important is to
correctly assess the risk area wise, understand the impact and initiate action
to mitigate the risks. General risk areas are classified under heids like
statutory compliances, financial, government regulations and policies, market
related, operational, products and technology. Availability of Raw Materials at
the right price and at the right time is crucial for maintaining steady
supplies to the customers.
F. Research & Development [R&D] and Technology Research and
Development activity of the Company continued carrying out research in its
Brighteners, Naphthols, quality up gradation of its existing products process
development ts etc.
The benefits derived as a result of R&D have been in development and
commercialization of new products mainly brighteners.
Financials performance &
Analysis:
Gross Sales for the Year aggregated to Rs. 1419.200 Millions reflecting
a growth of around 23.17% over the previous year.
Overheads were kept under control. Overall overheads as a percentage to sales,
dropped from 11.38% to 10.88%.
Profit before Depreciation, Interest and Taxes for the year is higher at Rs. 13.283
Millions as compared to Rs. 10.371 Millions of previous year reflecting a
growth of 28.07%. Depreciation for the year is lower at 4.036 Millions as
compared to Rs 4.907 Millions of previous year. Profit before tax is at Rs.
8.638 Millions as compared to Rs. 4.354 Millions which is a growth of
98.39%
WEBSITE DETAILS:
Subject is a chemical manufacturing Company established in
1992. They have come a long way since and established a name in the chemical
industry. Other than the production of chemicals, which after processing
becomes a part of everyone's day to day life, Subject entered the consumer
arena in 1995 by converting into a Public Limited Company. Today, it has a
subscribed capital of Rs. 52 Million having more than 4000 share holders,
including Foreign Collaborators, Financial Institutions, Body Corporates,
Non - Resident Indians and Indian public.
Subject has a
production facility in Tarapur. The unit was established in 1992 and from a
small turnover of about 10 millions that year, the unit has achieved higher
sales in the range of Rs. 100 millions, with reasonable profits and reserves in
the last ten years.
In the year 1993, they at Subject came
across the Japanese Technology. They realised the benefits of using it which
resulted in low input costs as well as manual labour in the area of production
and automation respectively. Hence, they decided to venture into collaboration
with them, on terms of transparency, trust and full co-operation from both
sides.
They are staunch believers of hard work and morality, which
is why they have been able to incorporate goodwill amongst all their audience,
be it clients, consumers, suppliers, share holders, bankers or their very own
employees. They believe that "All successful business stands on foundation
of morality, and the price of greatness is responsibility."
Their quality and consistency as a reliable source of supply
is the key differentiator between them and the others, hence they are fully
conscious that at any costs they have to maintain their credibility. It is only
because of such reasons that their clients value their work to the extent that
they export their products under their names and trademarks claiming full
responsibility.
Their clientele includes established names in the industry
like Clariant, KIWA, ERCA spa, DAIKA (Japan) and many more.
With an established clientele and a production setup of
international standards, Subject applied for the ISO 9001:2000 Certification,
which has been approved thus adding a hallmark to the Subject team's hard work
and success.
Factory
Subject has
one manufacturing plant, located on the outskirts of Mumbai, in Tarapur near
Boisar.
The main objective of the unit
is to produce quality Intermediates, mainly for exports with the technical help
from the overseas collaborators, so as to create cost advantages for all their
customers, establish trust and confidence as a reliable sourcing unit.
Subject's state
of the art plant at Tarapur has been setup with Japanese Collaboration having
forward integration production facilities from PNTSA, DNS, DAS, DHS to various
OBA's under one roof.
Subject
also has a comprehensive technology - cum - marketing tie-up in
the field of "Azoic Coupling Components" with the Japanese
Collaborators. The plant is located at E-4, M.I.D.C., Boisar, in Thane district
of Maharashtra, having present production facilities approved by the Government
of India vide their acknowledgement No. 782 / SAI / IMO / 98 dated 22/04/1998.
As a composite unit, it has backward integration facilities
to produce 60MT per month of DNS and 50MT per month of DAS with sufficient
spare capacity for sale, after captive consumption. The present installed
capacity for Pigment Intermediates and Azoic Coupling Components is 500MT per
annum and have on hand expansion plans to double it.
The factory has various plants
consisting of Sulfonations, Air-Oxidation Tanks, Reduction Vessels and 4
Cyanuration Reactors of SS 316 of 10,000 ltrs capacity along with balancing
equipment's such as Filter Presses, Dryers, Blenders, Pulverizers, Chilling
Plant, Boilers, Glasslined Reactors and Condensers.
The Laboratory and the Testing facilities cover Spectro
Photo Meter / HPLC / and other relevant instruments required for stringent
quality testing.
Collaboration
The Tarapur plant, near Mumbai, has been setup with
the Japanese Collaboration to include modern setup of International Standards.
It has the forward integration facilities from PNTSA, DNS, DAS, DHS to various OBA's
under one roof.
The Japanese technology is unique in real sense, that the
input costs are minimum, particularly the processes involving Air-Oxidation,
Amidation, De-hydration, Condensation etc., where cost advantage is remarkable.
Automation is another field where a lot of manual labour can be spared.
Besides, in all the range of production lines, the Japanese
have not only provided technology free of any costs, but had agreed to
buy-back certain quantities of their production for their valued clients, since
the quality of the products were directly under their supervision and control.
This way both the companies have been able to establish their names in the
International Markets.
Their fundamental principle is to join hands on honourable
terms with any of the overseas partners / producers as a "Joint Venture
Unit" that can be managed in total transparency and trust with full
co-operation from both the sides.
Products
The main products are various types of Stilbene Derivatives,
Optical Brighteners for Textiles / Paper / Detergent Industries, Naphthol
Grounders for Pigments and Intermediates for Pigment Red 170.
Subject is a
large producer of OPTICAL BRIGHTENING AGENTS - OBA's, broadly used in the
Cellulosic Fibers, Pulp and Paper, Detergent and Soap. The present range
consists of FB 24, 71, 86, 90, 113, 134, 220 and 357, chemically known by C.I.
generic names. These are generally similar to European Brands, such as UVITEX
of CIBA, BLANKOPHOR of BAYER and LEUCOPHOR of CLARIANT.
Subject has
setup a modern plant at Tarapur near Mumbai with Japanese Collaboration having
forward integration production facilities from PNTSA, DNS, DAS, DHS to various
OBA's under one roof. The present production including Intermediates is
exported to USA, Europe and South East Asian countries. Installed capacity of
various OBA's is around 2000MT per annum including few important Intermediates
covering Carboxylic acid and Carbon Amides, used for Pigments which are
manufactured exclusively for the overseas market.
Under the strict supervision
provided by the foreign collaborators, the Company has installed capacities for
Crude, Concentrated Highly Conc. and Liquid OBA's for Paper / Textiles and for
Detergents / Soaps, CBUS type.
Subject now offers an important Pigment
for PAINT AND PRINTING INK INDUSTRY under their product name - "DIGAMENT
RED 170" C.I. No. Pigment Red F5RK - Pigment Red 170 - C.I. No. 12475 in
order to cater to the growing demand of the Indian Markets.
At Subject they
are not in business only to manufacture and supply chemicals, but maintain a
long lasting relationship with their prestigious customers such as CLARIANT,
ERCA spa, KIWA and so on.
"DIKAPHOR" is the registered trademark of
the OBA's manufactured by the Company
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.42.82 |
|
UK Pound |
1 |
Rs. 84.72 |
|
Euro |
1 |
Rs. 66.62 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|