MIRA
INFORM REPORT
|
Report Date : |
04.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HENKEL CHEMBOND SURFACE TECHNOLOGIES LIMITED |
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Registered Office : |
Chembond Centre, EL-71, MIDC, Mahape, Navi Mumbai – 400 710,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
07.10.1996 |
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Com. Reg. No.: |
11-103091 |
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CIN No.: [Company
Identification No.] |
U24243MH1996PLC103091 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH03910C |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer of Pretreatment of Chemicals. |
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 580000 |
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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 joint-venture between Henkel, Germany and Chembond Chemicals,
India. Trade relations are fair. Business is active. Payments are reported as
usually made as per commitments. The Company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
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Name : |
Ms. Rashmi |
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Designation : |
Accountant |
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Date : |
01.11.2008 |
LOCATIONS
|
Registered Office : |
Chembond Centre, EL-71, MIDC, Mahape, Navi Mumbai – 400 710,
Maharashtra, India |
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Tel. No.: |
91-22-27618799 |
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Fax No.: |
91-22-27681294 |
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E-Mail : |
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Website : |
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Area : |
2000 Sq. ft. |
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Location : |
Owned |
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Factory : |
Plot No. E-6/4, MIDC, Industrial Area, Tarapur 65, Boisar – 401 506,
Maharashtra, India |
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Tel. No.: |
91-2525-272615 |
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Fax No.: |
91-2525-271172 |
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Location : |
Owned |
DIRECTORS
|
Name : |
Mr. Vinod Dahyalal Shah |
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Designation : |
Director |
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Address : |
701, Phalguni Apartment, 1/11 Sarojini Road, Santacruz (West), Mumbai –
400 054, Maharashtra, India |
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Date of Birth/Age : |
23.04.1932 |
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Date of Appointment : |
07.10.1996 |
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Name : |
Mr. Sameer Vinod Shah |
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Designation : |
Managing Director |
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Address : |
A-101, Jagat Vidya, Bandra (East), Mumbai – 400 051, Maharashtra,
India |
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Date of Birth/Age : |
16.02.1960 |
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Date of Appointment : |
11.02.1997 |
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Name : |
Mr. Ashwin Ratilal Nagarwadia |
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Designation : |
Director |
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Address : |
4, Bharty Nivas Society, Ellisbridge, Ahmedabad – 380 006, Gujarat,
India |
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Date of Birth/Age : |
20.09.1937 |
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Date of Appointment : |
07.10.1996 |
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Name : |
Mr. David Richard Minshaw |
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Designation : |
Director |
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Address : |
Room 807-810, 8/F Island Place Tower, 510 King’s Road, Hong Kong |
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Date of Birth/Age : |
18.04.1944 |
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Date of Appointment : |
11.02.1997 |
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Name : |
Mr. Ian Raymond Parish |
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Designation : |
Director |
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Address : |
15 A, Block 2, Pacific View, 38 Tai Tam, Hong Kong |
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Date of Birth/Age : |
53 Years |
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Date of Appointment : |
23.08.2006 |
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Name : |
Mr. Batholomew John Griffen |
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Designation : |
Director |
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Address : |
27-Siena One Discovery Bay, Hong Kong |
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Date of Birth/Age : |
28.05.1966 |
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Date of Appointment : |
18.02.2004 |
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Name : |
Mr. Faruk Ahmet Arig |
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Designation : |
Director |
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Address : |
14-Farrer Road, Water Fall, Gardenshoz – 01 |
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Date of Birth/Age : |
14.07.1952 |
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Date of Appointment : |
15.02.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 22.03.2007)
|
Names of Shareholders |
No. of Shares |
|
Vinod Dahyalal Shah |
10 |
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Sameer Vinod Shah |
10 |
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Bhadresh D Shah |
10 |
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Nirmal V Shah |
10 |
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Sharad M Mahadik |
10 |
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Ashwin Ratilal Nagarwadia |
10 |
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Jayant S Vasani |
10 |
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Henkel KGAA |
510000 |
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Chembond Chemicals Limited |
489930 |
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Total |
1000000 |
Equity shares Breakup (percentage of total equity)
(As on 30.06.2007)
|
Category |
Percentage |
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Foreign Holdings |
51.00 |
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Bodies corporate |
48.99 |
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Directors or Relative of director |
0.01 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Pretreatment of Chemicals. |
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Terms : |
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Selling : |
Credit (30 days) |
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Purchasing : |
Cash and Credit (30 days) |
GENERAL
INFORMATION
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No. of Employees : |
83 |
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Bankers : |
·
Bank of India, Worli Naka Branch
·
Deutsche
Bank Hazarimal Somani Marg, Fort, Mumbai - 400 001, Maharashtra, India |
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Facilities : |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
Dhiren P Talati Chartered Accountants |
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Address : |
Kastury and Talati 202, Kapole Co-Op Bank Building, Mumbai – 400 002, Maharashtra,
India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs.10/- each |
Rs.10.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs.10/- each |
Rs.10.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.12.2006 |
31.12.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
10.000 |
10.000 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
106.236 |
66.616 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
116.236 |
76.616 |
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LOAN FUNDS |
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1] Secured Loans |
|
4.529 |
15.015 |
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2] Unsecured Loans |
|
0.000 |
0.000 |
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TOTAL BORROWING |
|
4.529 |
15.015 |
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DEFERRED TAX LIABILITIES |
|
3.342 |
2.938 |
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TOTAL |
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124.107 |
94.569 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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33.488 |
29.903 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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10.529 |
2.889 |
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Sundry Debtors |
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180.526 |
117.596 |
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Cash & Bank Balances |
|
6.661 |
10.013 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
95.559 |
64.487 |
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Total
Current Assets |
|
293.275 |
194.985 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
|
102.027 |
57.206 |
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Provisions |
|
100.660 |
73.359 |
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Total
Current Liabilities |
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202.687 |
130.565 |
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Net Current Assets |
|
90.588 |
64.420 |
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MISCELLANEOUS EXPENSES |
|
0.031 |
0.246 |
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TOTAL |
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124.107 |
94.569 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.12.2006 |
31.12.2005 |
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Sales Turnover |
|
518.178 |
369.899 |
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Other Income |
|
13.734 |
6.667 |
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Total Income |
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531.912 |
376.566 |
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Profit/(Loss) Before Tax |
|
104.135 |
59.696 |
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Provision for Taxation |
|
37.149 |
25.516 |
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Profit/(Loss) After Tax |
|
66.986 |
34.180 |
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Expenditures : |
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Cost of Materials and Other Expenses |
|
325.769 |
222.294 |
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Direct Expenses |
|
11.589 |
7.829 |
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Administrative Expenses |
|
53.403 |
51.725 |
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Selling and Distribution Expenses |
|
37.075 |
28.846 |
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Increase/(Decrease) in Finished Goods |
|
(3.390) |
0.376 |
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Finance Charges |
|
1.087 |
4.313 |
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Depreciation & Amortization |
|
2.244 |
1.487 |
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Total Expenditure |
|
427.777 |
316.870 |
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KEY RATIOS
|
PARTICULARS |
|
|
31.12.2006 |
31.12.2005 |
|
PAT / Total Income |
(%) |
|
12.59 |
9.08 |
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Net Profit Margin (PBT/Sales) |
(%) |
|
20.10 |
16.14 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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31.87 |
26.54 |
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Return on Investment (ROI) (PBT/Networth) |
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|
0.90 |
0.78 |
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Debt Equity Ratio (Total Liability/Networth) |
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|
1.78 |
1.90 |
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Current Ratio (Current Asset/Current Liability) |
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|
1.45 |
1.49 |
LOCAL AGENCY
FURTHER INFORMATION
Form No. 8
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Name of the company |
HENKEL CHEMBOND SURFACE TECHNOLOGIES LIMITED |
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Presented By |
Mr. Sameer Shah,
Managing Director |
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1) Date and description of instrument creating the change |
Hypothecation
deed dated 27.02.2002 for short term loan and overdraft facility for
Rs.30.000 millions against current assets. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.30.000
millions |
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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 |
Hypothecation of
present and future movable current assets comprising of stock-in-trade
including raw materials, semi-finished goods and book debts both present and
future. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest rate : 1.
Deutsche Bank
Prime lending Rate + 0% p.a. (plus interest tax as applicable.) 2.
Goods shall
be insured against fir risk by the Borrowers 3.
The balance
due to the bank shall not at any time exceed: ·
70% of the
value of the hypothecated goods ·
30% of the
value of the said debts. |
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5) Name and Address and description of the person entitled to the charge. |
Deutsche Bank Hazarimal Somani
Marg, Fort, Mumbai - 400 001, Maharashtra, India |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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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. |
Not Applicable |
Fixed Assets
·
Land – Leasehold at Tarapur
·
Building – Office
·
Building – Factory
·
Computers
·
Furniture fixture and fitting
·
Office equipment
·
Motor Car
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Motor cycle
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Lab equipment
·
Plant and Machinery
·
Electric Fitting
Web Details
Subject is the Indian arm of
Henkel Surface Technologies (HST), offering the entire range of HST products
and services for the Indian market. The company is a joint venture between
Henkel KGaA and Chembond Chemicals Limited, a company with over 29 years of
experience in products for metal pretreatment, water treatment, protective
coatings, building chemicals, and monitoring instrumentation. Subject
controls 51% of the joint venture and Chembond, a listed company on the Bombay
Stock Exchange, owns 49%.
Subject offers,
·
Global
Technical and Sales support
·
Wide
range of technologies for surface engineering
·
Innovative
products backed by experienced personnel
·
Cost-effective
solutions
·
Partnership
in the areas of health and safety, performance and processing ease
Over the past several years, the market environment has
remained very harsh, severe. Subject, however by continuing to supplying unique products
designed to please customers within a wide spectrum has gained a significant
share of the market in a number of key areas, which in turn has made a solid
contribution to the business performance.
Subject
caters chemicals to Steel and Coil, Automotive, Appliance, Specialty Chemicals,
and General Industries. In line with the policy of forming partnerships with
customers, they have been providing services like process, performance,
inventory control, cost monitoring, JIT deliveries, and reusable packaging
since the vast experience in pretreatment and other performance chemicals.
To those
customers making use of the products, they would like to take this opportunity
to express the sincere thanks for the loyal patronage. Subject are total committed to serving the customers
and always feel a sense of deep gratitude whenever they encounter yet another
satisfied user.
Products
|
Process Components |
Description |
Brand Name |
Alkali Cleaners
|
Degreasing chemicals |
Ridoline, Kleenol, Parco Cleaner |
Cleaning
Additives
|
Additive for degreasing chemicals |
Ridosol |
|
Neutral Cleaners |
Neutral degreasing chemicals |
Neutrapon, Neutraseal, Neutracare, Grision |
Derusting Chemicals
|
Rust removing chemicals |
Rustokem, Derustalk |
|
Acid Inhibitors |
Used for acid inhibition |
Rodine, KemiBit |
|
Activation Compounds |
Surface conditioning chemicals |
Fixodine, Kem Activator |
|
Surface Treatment for Al |
Surface conditioning chemicals for
aluminium |
Alodine |
|
Manganese Iron Phosphate Chemicals |
Manganese phosphating chemicals |
Parcolubrite, Thermoil Granodine |
|
Nanoceramic technology (without sludge) |
Phosphate free pretreatment for MS, EG and
AL simultaneously |
Bonderite NT-1 |
|
Iron phosphate |
Iron phosphate chemicals |
Duridine, Aquaphos |
|
Zinc Phosphate |
Zinc phosphate chemicals - Hot and cold
phosphating |
Granodine, Kem Kote |
|
Post Rinse Treatment Chemicals
(Passivation) |
Sealing chemicals - Chrome and Non Chrome
|
Kem Passivate, Deoxylyte |
|
No rinse Passivation Chemical |
Sealing chemicals |
Passerite |
|
Water based Corrosion Resistant Paint |
Suncorite Aqua |
Suncorite |
|
Paint Stripper |
Hot / cold, water / solvent based
paint strippers |
Kem D Kote |
|
Paint Coagulants |
Coagulation / detakifying chemicals |
Cronifloc |
|
Paint Booth Specialty Chemicals |
Oven cleaning and coating, grate coating,
booth wall masking |
Thermal Coat |
Wet and
Dry Lubricants
|
Wire Tube drawing chemicals |
Kem Draw, Kem Luba |
|
Rust Preventive Compounds |
Protective oils |
Kem Oil |
|
Water Miscible Cutting Fluids |
Neat and Miscible Metal working fluids |
Multan, Gerocut |
Anodizing Chemical
|
Colouring process for aluminium |
Almeco |
|
Autophoretic Chemical Coatings |
Organic coating |
ACC |
|
Aviation Products |
Cleaners, strippers, coating chemicals |
Turco |
|
Coil Coating Chemicals |
Dry-in-place Pretreatment |
Novacoat, Granodine |
|
Rolling Oil |
Rolling on batch and continuous process |
Gerolub |
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Wet Temper Fluid |
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Steel Skin |
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Tube Drawing |
|
Reactobond |
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 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.48.96 |
|
UK Pound |
1 |
Rs.80.26 |
|
Euro |
1 |
Rs.63.08 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|