MIRA
INFORM REPORT
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Report Date : |
21.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
ELANTAS BECK INDIA LIMITED |
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Formerly Known As : |
BECK INDIA LIMITED |
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Registered Office : |
407-A, ‘Arcadia’, 10th Floor, 195, Nariman Point, Mumbai – 400 021, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
15.03.1956 |
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Com. Reg. No.: |
11-9752 |
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CIN No.: [Company
Identification No.] |
L24222MH1956PLC009752 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEB02788C |
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PAN No.: [Permanent
Account No.] |
AAAACD0538M |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of Insulation Varnishes, Unsaturated Polyester Resins, Other Paints, Varnishes and Epoxide Resins. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 3108400 |
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Status : |
Good |
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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 fine track. Directors are reported as experienced respectable and educated industrialists. Financial position of the company is good. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory : |
407-A, ‘Arcadia’, 4th Floor, 195, Nariman Point, Mumbai – 400 021, Maharashtra, India |
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Tel. No.: |
91-22-22833255 / 22833224 / 24932654 |
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Fax No.: |
91-22-22873455 |
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E-Mail : |
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Website : |
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Corporate/Head Office : |
‘Beck House’, Off Law College Road, Pune – 411004, Maharashtra, India |
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Tel. No.: |
91-20-30210600 |
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Fax No.: |
91-20-30210634 |
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E-Mail : |
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Factory : |
Technical Services 147, Bombay - Pune Road, Pimpri, Pune – 411018, Maharashtra, India Tel. No. : 91-20-30610600 Fax No. : 91-20-30610601 E-mail : tsd@beckindia.com Plot No. 1 (A, B and C), GIDC Industrial Area, Ankleshwar – 393002, Gujarat, India Plot No. D-1/3, MIDC, Lote-Parshuram, Taluka Khed - 415 722, Distreict - Ratnagari, Maharashtra |
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Regional Offices: |
403, World Trade Centre, Babar Road, New Delhi – 110001,
India Unit 708, 7th Floor, Om Tower, 32, J. L. Nehru
Road, Kolkata - 700079 Marketing and
Export Head Office Beck House, Damle Path, Pune – 411004, India 1176, 12th H.A.L. II Stage, Bangalore – 560008,
India |
DIRECTORS
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Name : |
Dr. Matthias Wolfgruber |
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Designation : |
Chairman |
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Name : |
Dr. Christoph Schlunken |
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Designation : |
Director |
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Name : |
Dr. Guido Forstbach |
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Designation : |
Director |
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Name : |
Mr. Martin Babilas |
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Designation : |
Director |
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Name : |
Mr. R. K. Kulkarni |
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Designation : |
Director |
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Name : |
Mr. Pradeep Mallick |
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Designation : |
Director |
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Name : |
Mr. S. N. Talwar |
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Designation : |
Alternate to Dr. Matthias Wolfgruber |
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Name : |
Mr. P. V. Despande |
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Designation : |
Alternate Director to Dr. Wolfgang Schutt [Marketing] |
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Name : |
Mr. S. R. Shetye |
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Designation : |
Alternate Director to Dr. Guido Forstbach [Manufacturing] |
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Name : |
Mr. Rajeev Bhide |
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Designation : |
Alternate Director to Mr. Martin Babilas [Finance and Corporate Affairs] |
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Name: |
Mr. M. Tandon |
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Designation: |
Managing Director |
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Age: |
62 Years |
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Qualification: |
B.Com, F.C.A. (England and Wales) |
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Experience: |
37 Years |
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Date of Joining: |
1st January, 1996 |
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Previous Employment: |
Chief Executive -
Finance and Personnel, BASF India Limited, Mumbai, Maharashtra, India |
KEY EXECUTIVES
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Name : |
Mr. Shirish Dabir |
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Designation : |
Company Secretary and Head Legal |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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PROMOTER
HOLDINGS |
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Foreign Promoters |
7020316 |
88.35 |
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Sub – Total |
7020316 |
88.35 |
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NON PROMOTER’S
HOLDING |
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Institutional
Investors Banks / Financial Institutions and Insurance |
29836 |
0.38 |
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Sub – Total |
29836 |
0.38 |
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Other Investors |
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Private Corporate Bodies |
22336 |
0.28 |
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NRI’s/ OCB’s / Foreign Others |
4242 |
0.05 |
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Sub – Total |
26578 |
0.34 |
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General Public |
618135 |
7.80 |
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Total |
7927682 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Insulation Varnishes, Unsaturated Polyester Resins, Other Paints, Varnishes and Epoxide Resins. |
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Products : |
Product
Description
Item Code No. Insulating Varnishes 320840 Unsaturated Polyester Resins 390791 Epoxide Resins 390730 |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Wire enamels, Impregnating Varnishes and Paints |
MT |
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9500 |
7818 |
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Synthetic Resins |
MT |
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4500 |
1609 |
GENERAL
INFORMATION
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No. of Employees : |
800 |
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Bankers : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
BSR And Company Chartered Accountants |
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Internal Auditor: |
Mahajan and Aibara Chartered Accountants |
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Associates : |
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Subsidiaries : |
America Europe Asia |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs.10/- Each |
Rs.150.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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7927682 |
Equity Shares |
Rs.10/- Each |
Rs.79.277 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES
OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
79.300 |
79.277 |
79.277 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
697.800 |
560.638 |
467.455 |
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NETWORTH
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777.100 |
639.915 |
546.732 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING
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0.000 |
0.000 |
0.000 |
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DEFERRED TAX
LIABILITIES |
0.000 |
17.913 |
19.063 |
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TOTAL
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777.100 |
657.828 |
565.795 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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179.500 |
159.958 |
160.475 |
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Capital work-in-progress
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32.500 |
9.775 |
4.479 |
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INVESTMENT
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108.200 |
113.140 |
3.316 |
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DEFERREX TAX ASSETS
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0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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362.000 |
242.607 |
250.339 |
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Sundry Debtors
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227.900 |
209.177 |
163.640 |
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Cash & Bank Balances
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58.700 |
55.606 |
118.557 |
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Loans & Advances
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496.000 |
35.633 |
24.630 |
Total Current Assets
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1144.600 |
543.023 |
557.166 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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194.200 |
106.437 |
116.079 |
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Provisions
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493.500 |
61.631 |
43.562 |
Total Current Liabilities
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687.700 |
168.068 |
159.641 |
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Net Current Assets
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456.900 |
374.955 |
397.525 |
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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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777.100 |
657.828 |
565.795 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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Sales Turnover |
1759.300 |
1219.854 |
1048.959 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
1759.300 |
1219.854 |
1048.959 |
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Profit/(Loss) Before Tax |
252.600 |
214.325 |
201.182 |
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Provision for Taxation |
83.800 |
138.380 |
120.537 |
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Profit/(Loss) After Tax |
168.800 |
75.945 |
80.645 |
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Export Value |
NA |
101.190 |
87.000 |
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Import Value |
NA |
215.764 |
187.144 |
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Total Expenditure |
1506.700 |
1005.529 |
847.777 |
QUARTERLY
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PARTICULARS |
30.06.2007 (1st
Quarter) |
30.09.2007 (2nd
Quarter) |
31.12.2007 (3rd
Quarter) |
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Sales Turnover |
428.900 |
420.200 |
414.500 |
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Other Income |
10.100 |
8.400 |
11.300 |
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Total Income |
439.000 |
428.600 |
425.800 |
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Total Expenditure |
362.300 |
350.000 |
341.800 |
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Operating Profit |
76.700 |
78.600 |
84.000 |
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Interest |
0.000 |
0.000 |
0.100 |
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Gross Profit |
76.700 |
78.600 |
83.900 |
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Depreciation |
6.800 |
6.700 |
6.900 |
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Tax |
24.600 |
24.200 |
24.000 |
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Reported PAT |
45.300 |
47.700 |
53.000 |
KEY RATIOS
|
PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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Debt Equity Ratio |
0.00 |
0.00 |
0.00 |
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Long Term Debt
Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current Ratio |
1.66 |
2.94 |
2.52 |
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TURNOVER RATIOS |
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Fixed Assets |
4.89 |
4.22 |
3.72 |
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Inventory |
5.47 |
5.51 |
5.26 |
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Debtors |
7.56 |
7.28 |
7.54 |
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Interest Cover
Ratio |
2527.00 |
307.14 |
504.00 |
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Operating Profit
Margin (%) |
16.32 |
16.92 |
18.50 |
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Profit Before
Interest and Tax Margin (%) |
15.30 |
15.83 |
17.30 |
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Cash Profit
Margin (%) |
11.25 |
11.28 |
11.54 |
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Adjusted Net
Profit Margin (%) |
10.22 |
10.19 |
10.34 |
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Return on Capital
Employed (%) |
35.67 |
36.24 |
40.50 |
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Return on Net
Worth (%) |
23.82 |
23.33 |
24.21 |
LOCAL AGENCY
FURTHER INFORMATION
Performance
The
sales performance of Rs.1442 million for the year ended 31 December 2006 is 22%
higher than the sales performance for the previous year ended 31 December 2005
of Rs.1175 million. In quantitative terms, a similar comparison reveals a
growth in sales volume of about 17%, for the year under review.
The aforesaid growth in sales as well as an improvement in other operational
parameters has resulted in an appreciable increase in Profit Before
Tax.
Management Discussion
and Analysis Report:
Growth in the manufacturing sector in India has crossed 10% in 2006-07, driven
primarily by strong domestic consumer demand from the ever increasing middle
class and investments in high technology capital intensive industry and
infrastructure. The Indian economy has grown by 8% and unlike countries of East
and South East Asia is less affected by global volatility, due to exports
constituting only about 16% of its GDP. Although inflation and consequent rise
in interest rates may moderate growth rates in the near future, particularly in
the housing and auto sectors where consumer finance plays a significant role,
the corporate sector is generally bullish on the 2007-08 prospects. There is
now evidence of massive expenditures taking place to address the problems of
infrastructure, but power will remain a constraint for some years. The
manufacturing sector is now reaching high capacity utilization and is once
again in a capital expenditure mode, which itself spurs the growth rate.
However, release of agricultural land for expansion and new
industrial units has become a contentious issue and in general, our society has
to address several social issues such as inclusive growth and the education and
health sectors.
During 2006, the Speciality Chemical Industry experienced volatility in certain
key raw material prices for reasons not related to crude oil prices, but
otherwise prices remained largely stable except for seasonal fluctuations.
Beck India's business lines are directly linked to the Electrical and
Construction Industry, both of which are expected to remain buoyant. Given
below is an analysis of our business in these two sectors.
Electrical Insulation Systems:
Beck India has catagorised its markets into three main areas - Primary
Insulation comprising enamels for winding wires; Secondary insulation
comprising varnishes and resins for electrical rotating machinery, lighting
components, transformers, switch gear and control gear; and a diverse variety
of compounded resins for Engineering, construction and electronics
applications.
In terms of end products, the Company's product range filters down to consumer
electrical and electronics, domestic, agricultural and industrial pump sets,
generating sets, electrical equipment for industry, railways, automobiles, two
wheelers, transformers and power equipment. Construction chemicals are utilized
in industrial & commercial buildings and bridges, dams, port structures
etc.
The wide spectrum of end user industry which constitutes the customer base of
Beck India indicates that the Company's prospects are closely enmeshed with the
country's manufacturing and infrastructure sectors, and the growth outlook
thereof augers well for the Company. For the electrical sector specifically,
the Indian Electrical and Electronic Manufacturers Association (IEEMA) has a
projected robust growth rate in the next 4-5 years.
Progressively reduced import tariffs have intensified competition from imports,
particularly in the market segment of Primary Insulation. The Company will
therefore have to innovate through its R&D and commercial skills to reduce
input costs in order to retain its competitive edge. The Company is also
collaborating with its Group affiliates to lower costs of key imported raw
material prices through global demand bundling arrangements.
The Company concluded negotiations with Sanmar Speciality Chemicals Ltd. for
the purchase of their Electrical Insulation business comprising of certain
selected intangibles but excluding all tangible assets and liabilities.
Although a small acquisition in terms of incremental sales turnover, this will
broaden the customer base of the Company for future growth. This acquisition
was completed in the early part of the current year and will start showing
results from the second quarter of 2007.
Construction Chemicals:
The entry of several global companies setting up new manufacturing units has
revolutionized construction techniques of industrial buildings, supplimenting
traditional building materials and increasing use of polymers, particularly for
floorings and high value chemical based exterior coatings. Beck India's
business in Construction Chemicals has witnessed a 13% growth in 2006, but with
more global companies entering this business, constant product innovation and
tailor made solutions are key to staying ahead. In 2006, Beck India has secured
several large contracts from global companies setting up new sites in India,
and has established a significant niche in the pharmaceutical, auto and
electronic sectors.
Current & Future Outlook:
The continuing growth of the Indian manufacturing sector will sustain the
demand for the Company's product range, subject to competition from imports and
global competitors establishing manufacturing bases in India.
In the process of rationalisation within the Altana Group, aimed at
optimization of both costs and benefits to customers, Beck India had taken over
export of certain electrical insulation products to South Africa and Sri Lanka,
as well as supplies to a key global customer in India, hitherto supplied out of
Europe. Conversely, such a rationalisation process will also mean that Beck
India will transfer certain customers in East Asia to its local affiliates,
which will marginally impact the results in 2008. In the event trade
restrictions between India and Pakistan are lifted, we see opportunities for
Beck India with customers serviced from other Affiliates.
Subject to the continuing economic buoyancy and stability in raw material
prices, your Board is optimistic about prospects for the current year.
Going forward the Company is gearing itself to meet growing business opportunities and is currently incurring significant capital expenditures to augment capacities and streamline its manufacturing operations.
Financial Performance with respect to
Operational Performance:
The year 2006 saw an increase in the Company's sales by 22% in value and 17% in
volume. Profit before tax increased by 17.8% compared with the year 2005. There
was no change in the product margin percentage as compared with the previous
year 2005.
The Company believes that growth of profits is generated not only out of
increased sales, but also through cost management from continuous upgradation
of manufacturing, commercial and business processes, particularly supply chain,
as well as new and improved products in its portfolio.
Internal Control Systems:
The operations and business processes within your Company are guided by clearly
laid down policies, guidelines and procedures that form part of the internal
control systems and which provide for the required checks and balances. The
adequacy of Internal Control Systems, the framework of which covers all the
business processes and financial reporting systems of the Company is regularly
reviewed by the Executive Management, Internal Auditors and the Audit
Committee. The Internal Auditors conduct regular audits in order to test the
adequacy of the controls, identify weaknesses and suggest improvements for
improved functioning. The observations and recommendations of the Internal
Auditors as also the corrective measures implemented by the Executive
Management are discussed by the Audit Committee to ensure effectiveness.
Fixed Assets:
· Freehold land
· Leasehold land
· Buildings and roads
· Plant and machinery
· Furniture and fixtures
· Motor vehicles
· Cycles.
Trade Reference:
- BASF AG, Germany
- BASF (India) Limited, Mumbai, Maharashtra, India
- BASF Industries Limited, Pune, Maharashtra, India
- Mahindra Van Wijk Visser Limited, Pune, Maharashtra, India
- National Chemical Laboratories, Pune, Maharashtra, India
- Coats India Limited, Calcutta, West Bengal, India
- Berger Paints India Limited, Mumbai, Maharashtra, India
- BASF Coatings and Inks, USA
WEBSITE DETAILS
Beck India Limited is a Group Company of ALTANA AG, an international Chemicals
Group with sales of about EUR985 million in the first three quarters of 2006
and approx 13500 employees all over the world. With a return on sales (EBT) of
around 22%, ALTANA is one of the most profitable and chemicals companies in
Europe.
One of its operating companies ALTANA Chemie AG provides innovative,
environmentally sound solutions based on specialty products for the electrical
industry, coating manufacturers, coating and plastics processors and the
electronics industry. The business unit Electrical Insulation of Altana Chemie
AG headquartered in Wesel, Germany comprises 9 companies in 6 countries.
Formerly
known as Dr. Beck and Company India Limited, Beck India was incorporated in
1956 to cater to the growing demand for wire enamels, varnishes and resins, and
the company today produces the widest range of electrical insulating materials
to satisfy the ever-changing needs of the most quality conscious customers in
electrical insulation systems, as well as construction chemicals.
Subject is a group company of ALTANA AG, a Chemical Group with sales of EUR 1.3 billion in 2006 and 4,400 employees worldwide.
The ALTANA Group is composed of the Bad-Homburg-based strategic management
holding company, ALTANA AG, and the operating division ALTANA Chemie AG. ALTANA
Chemie AG, headquartered in Wesel, has established itself as a global provider
of innovative, environmentally compatible solutions and the corresponding
special products for coatings manufacturers, coatings and plastics processors
and the electronics industry. The product range includes additives, metallic
effect pigments, specialty coatings, sealing and casting compounds, electrical
insulation material, impregnating agents as well as testing and measuring
instruments. With these products, ALTANA Chemie has been successful in selected
niche markets worldwide. All four of its business units are among the leading
manufacturers in their markets.
The business unit, Altana Electrical Insulation is headquartered in Wesel,
Germany comprises 9 companies in 6 countries.
Profile
In 2006, Beck India completed 50 years of operations in India. Formerly known as Dr. Beck and Company India Limited, Beck India was incorporated in 1956 to cater to the growing demand for wire enamels, varnishes and resins, and the company today produces the widest range of electrical insulating materials to satisfy the ever-changing needs of the most quality conscious customers in electrical insulation systems, as well as construction chemicals.
Pimpri Manufacturing
Plant
Beck India Ltd.
commissioned its first manufacturing plant at Pimpri in Maharashtra in the year
1956, to produce a wide range of wire enamels, varnishes and resins.
Ankleshwar
Manufacturing Plant
In 1981, the second
modern plant was set up at Ankleshwar in Gujarat, to cater to the increasing
market demand for insulating materials
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.40.45 |
|
UK Pound |
1 |
Rs.81.20 |
|
Euro |
1 |
Rs.63.48 |
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 |
|