MIRA
INFORM REPORT
|
Report Date : |
23.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
TOTAL LUBRICANTS INDIA LIMITED |
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Formerly Known As : |
TOTAL FINAELF
INDIA LIMITED |
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Registered Office : |
3RD Floor, The Leela Galleria, Andheri Kurla Road, Andheri
(East), Mumbai – 400059, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
15.01.1993 |
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Com. Reg. No.: |
070410 |
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CIN No.: [Company
Identification No.] |
U23201MH1993PTC070410 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUME01812G |
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PAN No.: [Permanent
Account No.] |
AAACE1877C |
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Legal Form : |
A Closely Held Public
Limited Liability Company |
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Line of Business : |
Manufacturers,
Importers and Exporters of Lubricants, Greases and related products using
company’s technology and under company’s trademarks. |
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 2330356 |
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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 Satisfactory track
records. Available information indicates high financial responsibility of the
Company. Trade relations are fair. Payments are Correct and as per
Commitments. The Company can be considered good for any normal business dealings at
usual trade terms. |
LOCATIONS
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Registered Office : |
3RD Floor, The Leela Galleria, Andheri Kurla Road, Andheri
(East), Mumbai – 400059, Maharashtra, India. |
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Tel. No.: |
91-22-6640 7700 |
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Fax No.: |
91-22-6640 7720 |
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E-Mail : |
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Website : |
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Head Office : |
1-02, Apple
Heritage, 54-C, Sir M. V. Road, Andheri (West), Mumbai – 400093, Maharashtra,
India |
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Tel. No.: |
91-22-28311500/4 |
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Fax No.: |
91-22-28311520 |
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Area : |
Owned |
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Factory 1: |
# 721,CMH Road, Indira Nagar – 560 038, Bangalore |
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Tel. No.: |
91-80-25284670/71/71 |
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Factory 2: |
Plot No. 26, TTC
Industrial Area, MIDC, Mahape, Navi Mumbai – 400 709, Maharashtra |
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Tel. No.: |
91-22-27780673 |
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Fax No.: |
91-22-27780871 |
DIRECTORS
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Name : |
Mr. Nicholas J.
Wellman |
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Designation : |
Managing Director
& Chief Executive Officer |
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Address : |
Malabar Court, 3rd
Floor, Ridge Road, Malabar Hill, Mumbai – 400006, Maharashtra, India |
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Date of Birth : |
01.06.1946 |
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Date of Appointment : |
01.10.2000 |
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Name : |
Mr. Anna
Whitehouse |
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Designation : |
Director |
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Address : |
Singapore |
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Date of Birth : |
22.02.1964 |
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Date of Appointment : |
28.09.2000 |
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Name : |
Mr. Nisel Pennington,
British |
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Designation : |
Director |
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Address : |
19, Bovlevard
Pereire – 75017, Paris, France |
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Date of Birth : |
27.12.1946 |
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Date of Appointment : |
28.09.2000 |
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Date of Ceasing : |
24.09.2002 |
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Name : |
Mr. Jean-Claude
Breton |
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Designation : |
Director |
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Address : |
5-B, Sunita
Building, 5th Floor, Ridge Road, Malabar Hill, Mumbai – 400 006,
Maharashtra, India. |
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Date of Birth : |
15.06.1943 |
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Date of Appointment : |
28.09.2000 |
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Name : |
Mr. Eudes
Charpentier |
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Designation : |
Director |
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Address : |
Singapore |
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Date of Birth : |
05.05.1967 |
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Date of Appointment : |
28.09.2000 |
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Name : |
Mr. Pierre – Yves
Loisean |
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Designation : |
Director |
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Address : |
25, Rochalie
Drive, Singapore – 248256 |
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Date of Birth : |
26.08.1959 |
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Date of Appointment : |
19.12.2001 |
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Name : |
Mr. Christine
Souchef |
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Designation : |
Director |
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Address : |
58, Avenue Du
Roule, 92 200 Nevilly 5/Seine, France |
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Date of Appointment : |
24.09.2002 |
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Name : |
Herve
Bourguignon, France |
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Designation : |
Director |
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Date of Appointment : |
21.07.1997 |
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Date of Resignation : |
28.09.2000 |
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Name : |
Mr. Eric Tersen,
France |
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Designation : |
Director |
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Date of Appointment : |
23.06.1999 |
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Date of Resignation : |
28.09.2000 |
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Name : |
Mr. Philippe
Mazenod |
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Designation : |
Director |
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Address : |
155, 4th Main, Indiranagar,
Bangalore, Karnataka |
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Date of Birth : |
31.05.1965 |
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Date of Appointment : |
05.04.2002 |
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Name : |
Mr. Christine
Souchet |
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Designation : |
Director |
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Address : |
58, Avenue Du
Roule 92 200 Nevilly 5 Zeine, France |
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Date of Birth: |
10.11.1959 |
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Date of
Appointment: |
24.11.1994 |
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Name : |
Mr. Maherudra B
Brahme |
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Designation : |
Vice President –
Finance |
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Name : |
Mr. Eric Painvin,
France |
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Designation : |
Director |
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Date of Appointment: |
15.01.1993 |
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Date of Resignation: |
28.09.2000 |
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Name : |
Mr. Homi Patel |
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Designation : |
Vice Chairman |
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Name : |
Mr. Thierry
Gautier |
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Designation : |
Chief Executive
Officer and Managing Director |
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Address : |
405 / 406,
Samudra Mahal, Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India
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Date of Birth
: |
15.06.1963 |
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Date of
Appointment: |
11.07.2003 |
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Name : |
Mr. Dilip Vaswani |
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Designation : |
Executive
Director |
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Address : |
Flat No. 501 /
502, GYM View, Plot No. 658, 16th Road, TPSIII, Khar (West),
Mumbai – 400052, Maharashtra, India |
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Date of Birth : |
18.12.1955 |
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Date of Appointment : |
16.11.2007 |
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Name : |
Mr. Pascal Renard |
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Designation : |
Director |
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Name : |
Mr. Boman Mirza |
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Designation : |
Director |
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Name : |
Mr. Gary Jones |
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Designation : |
Director |
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Address : |
4, Ardmore Park,
# 07 – 01, Heritage Apartments, Singapore - 259950 |
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Date of Birth : |
08.09.1947 |
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Date of Appointment : |
24.8.2004 |
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Name : |
Mr. Marc
Folleville |
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Designation : |
Director |
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Address : |
BLK, 6, Walshe Road
# 4 – 01, Chelsea Gardens, Singapore - 257650 |
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Date of Birth : |
12.08.1955 |
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Date of Appointment : |
24.06.2004 |
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Name : |
Mr. Gerard
Pruneau |
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Designation : |
Director |
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Address : |
32 C, Balmoral
Park, Singapore - 259862 |
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Date of Birth : |
17.02.1956 |
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Date of Appointment : |
24.06.2004 |
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Name : |
Mr. Jewell Paul |
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Designation : |
Director |
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Address : |
Halcyon Bervice
Apartments, 1st Cross, 4th Block, Kora Mangala,
Bangalore – 560047, Karnataka, India |
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Date of Birth : |
26.12.1956 |
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Date of Appointment : |
06.09.2005 |
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Name : |
Mr. Christan
Chammas |
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Designation : |
Director |
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Address : |
19, Rue Des
Ursulines - 78100, ST German EN Laye, France |
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Date of Birth : |
14.11.1954 |
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Date of Appointment : |
16.11.2007 |
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Name : |
Mr. Jean Gustave
Nehlil |
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Designation : |
Managing Director |
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Address : |
C/O Total Oil Co;
139, 7th Floor, Sethiwan Tower, Pan RD Silom, Bangkok – 10500,
Thailand |
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Date of Birth : |
30.06.1953 |
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Date of Appointment : |
01.09.2006 |
KEY EXECUTIVES
|
Name : |
Mr. Maharudra B.
Brahme |
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Designation : |
Company Secretary |
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Address : |
901, Great
Eastern Heights, 525, Malad Marve Road, Malad (West), Mumbai – 400064,
Maharashtra, India |
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Date of Birth : |
31.07.1962 |
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Date of Appointment : |
24.11.1994 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 12.03.2007)
|
Names of Shareholders |
No. of Shares |
|
Total Fina Elf
France (France) |
16260673 |
|
Total Fina Elf
France (Nominee M. B. Brahme) |
1 |
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Total Fina Elf
France (Nominee Thierry – Jean Gautier) |
1 |
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Total Fina Elf
France (Nominee Gerard Pruneau) |
1 |
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Total Fina Elf
France (Nominee Marc Andre Folleville) |
1 |
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Total Fina Elf
France (Nominee Gary Jones) |
1 |
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Total Fina Elf
France (Nominee Paul Jewell) |
1 |
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Total |
16260679 |
Equity Share breakup (Percentage of Total Equity)
(As on 31.12.2007)
|
Category |
Percentage |
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Foreign holdings (Foreign Institutional
Inventor(s), Foreign companie(s) Foreign financial institution(s), Non-resident
Indian(s) or Overseas corporate bodies or Others |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers,
Importers and Exporters of Lubricants, Greases and related products using company’s
technology and under company’s trademarks. |
|
|
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Products : |
· Lubricating Oils · Grease ·
Traded Items |
PRODUCTION STATUS
|
Particulars |
Unit |
Actual
Production |
|
Lubricants Oils
of various grades -
Processed at
its own plant -
Processed by
third party |
MT |
30803 5473 |
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Greases of
various grades -
Processed by
third party |
MT |
3114 |
GENERAL
INFORMATION
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No. of Employees : |
250 |
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Bankers : |
· Calyon Bank · The Hong Kong and Shanghai Banking Corporation
Limited 52 / 60, Mahatma Gandhi Road, Fort, Mumbai – 400 001. · State Bank of India Fort Branch, Mumbai – 400 001, Maharashtra ·
Bank of
Baroda Banquet Indo Suez |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Bharat S. Raut
and Company, Chartered Accountants |
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Address : |
KPMG House,
Kamala Mills Compound, 448, Senapati
Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra |
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Tel. No.: |
91-22-24913030 |
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Sister
concern : |
· Raysif India Limited, Mumbai. · REPL Engineering Limited |
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Subsidiaries : |
· Total Fina Elf Lubricants S.A. · Total Raffinage Distribution S.A. · Atofina · ELF Oil Belgium S.A. · Total Lubricants Japan · Total Belgium S.A. · Total Lubricants Taiwan Limited · Total France · Total Lubricants International · Total Cambodia · Total ISY Oil Company Limited · ELF Lubricants (Guangzheu) Company Limited · G. I. E. · Total Petroleum India Private Limited |
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|
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Holding
Companies : |
Total France Ultimate
Holding Company Total S.A. |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
|
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|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16260679 |
Equity Shares |
Rs.10/- each |
Rs.162.606 millions |
|
|
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
162.606 |
162.606 |
162.606 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
419.983 |
306.638 |
289.206 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
582.589 |
469.244 |
451.812 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
45.697 |
134.601 |
24.045 |
|
|
2] Unsecured Loans |
100.786 |
8.971 |
11.153 |
|
|
TOTAL BORROWING |
146.483 |
143.572 |
35.198 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
729.072 |
612.816 |
487.010 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
135.161 |
130.577 |
122.172 |
|
|
Capital work-in-progress |
1.839 |
1.483 |
9.102 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
17.829 |
13.968 |
18.601 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1146.664
|
894.904 |
826.704 |
|
|
Sundry Debtors |
346.273
|
298.310 |
172.954 |
|
|
Cash & Bank Balances |
150.781
|
126.166 |
127.979 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
153.472
|
201.987 |
127.902 |
|
Total
Current Assets |
1797.190
|
1521.367 |
1255.539 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
970.592
|
956.726 |
803.900 |
|
|
Provisions |
252.355
|
97.854 |
114.503 |
|
Total
Current Liabilities |
1222.947
|
1054.580 |
918.403 |
|
|
Net Current Assets |
574.243
|
466.788 |
337.136 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
729.072 |
612.816 |
487.010 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.12.2007 |
31.12.2006 |
|
|
Sales Turnover (Including Other Income) |
|
4438.528 |
3643.176 |
|
|
Total Income |
|
4438.528 |
3643.176 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
473.977 |
159.076 |
|
|
Provision for Taxation |
|
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
|
473.977 |
159.076 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Interest |
|
48.641 |
45.110 |
|
|
Depreciation & Amortization |
|
24.444 |
22.470 |
|
|
Other Expenditure |
|
3891.466 |
3416.520 |
|
Total Expenditure |
|
3964.551 |
3484.100 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
PAT / Total Income |
(%) |
10.68
|
4.37 |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.68
|
4.37 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.68
|
4.37 |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.81
|
0.34 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.09
|
2.25 |
2.03 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.47
|
1.44 |
1.37 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
|
Name of the company |
TOTAL LUBRICANTS INDIA LIMITED |
|
Presented By |
CALYON BANK AND TOTAL FINAELF INDIA LIMITED |
|
1) Date and description of instrument creating the change |
Dated : 11.08.1998 Joint Deed of Hypothecation of Stocks and book debts. |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Hong Kong Bank - Rs. 56.875 millions Credit Agricole Indosuez - Rs. 96.250 millions Total - Rs. 153.125 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
N.A. |
|
4) Gist of the terms and conditions and extent and Operation of the charge. |
In consideration of Overdraft / Working Capital Demand Loan and/or any other banking facilities sanctioned to be sanctioned by the said Banks to and charged to the said Banks by way of first charge as a continuing security, the assets mentioned in item No. 3 above to secure the repayment of the advances together with Interest Cost and all other charges. Interest at the rate of 15.50% p.a. by the Hong Kong and Shanghai Banking Corporation Limited and 16.32% p.a. by Credit Agricole Indosuez shall be payable by the company, subject however that the said Banks shall have the right to change the rate of interest after giving notice to the Company. The Company shall maintain such margin of security as may be specified by the said banks from time to time. In case the Company falls to fulfill its obligations under the Agreement, the Bank shall be entitled to the possession of the hypothecated properties and sell them by public auction or private contract and utilise the proceeds in full or part settlement of its claims. |
|
5) Name and Address and description of the Person entitled to the charge. |
· The Hong Kong and Shanghai Banking
Corporation Limited
52 / 60, Mahatma Gandhi Road, Fort,
Mumbai – 400 001, Maharashtra, India · Calyon Bank
Credit Agricole Indosuez
Hoechst House, 11th
Floor, Nariman Point,
Mumbai – 400 021, Maharashtra, India |
|
6) Date and brief description of instrument modifying the charge |
Dated : 22.12.2005 Supplemental Joint Deed of Hypothecation of Stocks and Book Debts. |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the Details of the modification. |
a) Past
Modification: The original charge created on 11.08.1998 for Rs. 153.125 millions was modified and increased to Rs. 192.750 millions on 17.07.2000 Further modified on 01.07.2004 for notifying change of name of Credit Agricole Indosuez to Calyon Bank. b) Present
Modification : At the request of the Borrower the bank has granted /agreed to grant an increase in the aggregate limits from Rs. 192.750 millions to Rs. 345.000 millions. Name of the
Bank Rs. in
millions Hong Kong Bank 185.000 Calyon Bank 160.000 Total 345.000 Thus, the aggregate limit now stands increased to Rs. 345.000 millions. |
History
The company was a
51:49 Joint Venture between ELF Lubricants S.A, France and company incorporated
in France and Raysif India Limited. In 1999
the company became a 100% subsidiary of ELF, France. During the year ELF, France sold its investment in the company to
DAJA 20, till 20.12.2002, which was a subsidiary of Total Fina ELF, S.A. France
on 20.12.2002 Daja 20 sold its stake in the company to Total Fina ELF, France.
Total Fina Elf, France is a wholly owned subsidiary of Total Fina Elf, USA, the
ultimate holding company.
Consequent to the
worldwide merger of Totalfina S.A., France & ELF Aquitaine S.A., France the
local management has decided to demerge the lubricating oils and grease
business of Total Petroleum India Private Limited into the company.
The company changed
its name to the present w.e.f. 01.01.2003
The company
operates in collaboration with ELF Lubricants S.A.
Fixed Assets
·
Leasehold
Improvements
·
Building and
Leasehold Land
·
Plant and
Machinery
·
Furniture and
Fixtures
·
Computers
·
Office
Equipment
·
Vehicles.
Press Clippings
Kochi (Kerala)
April 20, 2004
Total Fina Elf India, one of the leading companies in the lubricants segment
in the country, has adopted an approach of focus and penetration to increase
its share in the market.
The target is to achieve a 25% growth with an aim to increase the market
share to three per cent from the present 1.4% by 2006.
The company will be focussing primarily on the commercial vehicle and
tractor segment in the bazaar trade, Mr R. Ramesh, Assistant Vice-President
(South), Lubricants Division, said at a press conference.
As far as Kerala is concerned, the company is aiming to achieve a growth
of 30 per cent in volumes and 20 per cent in the secondary network this year,
he added.
Mr. Ramesh was here in connection with the change of company’s logo in
compliance with the global strategy. The new logo has been designed keeping in
mind the company’s global strengths and its vision, he said.
It is déjŕ vu for the Indian
oil industry. Ten years ago, the skyline was crowded with such names as Caltex,
Mobil, Gulf, Shell and Idemitsu flashing their lubricants and engine oil
brands. India had welcomed the world, albeit with the doors half-open.
The story of Elf Lubricants India
Ltd began then. A decade later the doors of the Indian oil sector seemed to
open a little more. However, the enthusiasm has turned to cautious scepticism
as many of the 35-odd players who had plunged into the Indian lubes market
vanished.
The world's fourth largest oil company is also watching the goings-on
with caution and hope. The company made a quiet entry into the Indian market
with its offering of lubricants, LPG and chemicals in 1992-93. The company,
which has maintained a low profile in India, recently completed a successful
international merger.
Business Line spoke to two of
the company's top officials — Mr P. K. Mittal, Vice-President (Sales) and Mr
Sanjoy K. Guha, Assistant Vice-President (Marketing), about TotalFinaElf's
lubes business and future plans.
"After the recent global merger of TotalFina and Elf, the company's
Elf and Total brands together hold about 9% in the bazaar segment of India's lubes
market," says Mr Guha.
Thanks to India's closed market, the presence of non-public sector oil
companies has so far been restricted to the `bazaar' or unorganised sector
comprising of spare part shops, hardware dealers and garages.
TotalFina, like its other private sector competitors, has learnt that a
strong dealer network parallel to the PSU retail outlets is essential for
survival in the Indian lubes market.
According to the officials, the company has set up a combined network of
Total and Elf lubes and grease oils comprising over 70 depots with 500
distributors and 21,000 dealers across five distribution zones in the country.
"They had set targets of establishing at least one dealer in every
important town and city in every state," says Mr Mittal.
Adds Mr. Guha, "This strategy was unlike that of other oil
companies which have traditionally focussed on `high value' areas such as the
urban market. But they decided to follow a strategy of slow and quiet building
of the Elf brand through smaller towns and interior parts of the country."
The company seems to have worked against the tide by ignoring most of
the established protocols in the lubes business. Targeting rural customers was
one such divergence.
The result — Elf is a popular name with most tractor and pumpset owners
with brands such as Elf Super HD5 and Elf Tractor HDC being introduced in the
rural and semi-urban markets.
"They were the first to supply lubricants for wet brakes in
tractors," says Mr Mittal. "Today most tractor owners prefer
oils."
The company has original equipment manufacturing contracts with Mahindra
and Mahindra Ltd which accounts for two-thirds of India's tractor sales.
Another alliance is with the multinational tractor manufacturer New Holland,
which recently entered the Indian market. While most lubes companies have
chosen to enter numerous OEM contracts, Elf claims to have chosen the "few
but the best" of the lot.
The company has alliances with General Motors for its Opel brand of
luxury cars while Volvo is the chosen partner in the trucks segment. "They
were among the first to introduce Elf Moto 4, a special engine oil for
four-stroke motorcycles in the Indian market. Others only followed suit
later," says Mr Guha. The product was endorsed by bike manufacturers that
included Hero Honda, Kawasaki Bajaj and Enfield.
Another broken convention has been the lack of hype surrounding the
brand.
Compared to brands such as Indian Oil Corporation's Servo, Hindustan
Petroleum, Bharat Petroleum and private sector major Castrol which are
competing for the viewer's attention, Elf has chosen to shy away from making
claiming its place on TV prime time or in-the-face highway hoardings despite
deep pockets of the mother company.
However, both officials agree that the long drawn, and complex, process
of the international merger of company and Elf has been one of the reasons for
the low public profile.
"They had been going about the business without succumbing to the
pressure of building hype around name. Besides, there was little logic in
spending unreasonably large sums on advertising. They chose to spend the effort
on speaking directly to the customers... although they must admit they are
making an effort to improve the visibility," says Mr Mittal.
And the future is bright. Both officials nod their heads in complete
agreement. "They are here to stay. After the completion of the merger,
they have a lot to build on," says Mr Guha.
Although there is a certain degree of scepticism about the speed of reforms,
the focus on improving the lubes business is as sharp as ever.
And what happens to the market after the recent opening up of the retail
sector?
"Well, a few more competitors in the lubes basket," says a
matter-of-fact Mr Guha. He is quick to remind one of how the Indian lubes
market saw enough competition in 1992-93, when the Indian consumer saw more
than 30 brands from every corner of the globe competing for his attention. Nine
years on, that number has dropped to less than half.
But decontrol reforms could result in another fallout. "Prices of
lubricants and oils may improve," according to Mr Mittal.
"With new players entering retail, the assured returns to PSUs from
diesel and petrol sales may come down. This would mean `real' competition in
the lubes market bringing `real' prices in the open. The incidence of curbing
competition through price undercutting may reduce as players will be unable to
subsidise lubes products with profits on other retail products," says Mr
Mittal.
Mr. Guha concurred: "Competition will be tougher. With most
Government reforms aiming at improving the life of vehicles and research
churning out longer-lasting oils, sales could dip. But the renewed highway
development plans will also mean more vehicles on the roads."
The only other worry is the slow pace of growth of the Indian lubricants
market. The market has remained stagnant at one million tonnes.
"Yes, the market does increase mildly to 1.2 million tonnes
sometimes, but the growth in a market such as India deserves to be much higher.
The year 2000 even saw a negative growth rate," says a concerned Mr
Mittal. But there is hope.
"They find this market interesting, complex and highly competitive.
And yes, they are here for a long time to come," he says with a smile.
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 :
The market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
The Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 43.15 |
|
UK Pound |
1 |
Rs. 85.08 |
|
Euro |
1 |
Rs. 68.10 |
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 |
NO |
|
--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, they have no basis upon which to
recommend credit dealings |
No Rating |
|