MIRA
INFORM REPORT
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Report Date : |
16.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
MICRO INKS
LIMITED |
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Formerly Known As : |
HINDUSTAN INKS
AND RESINS LIMITED |
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Registered Office : |
Bilakhia House,
Muktanand Marg, Chala, Vapi – 396191, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
13.11.1991 |
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Com. Reg. No.: |
04-16598 |
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CIN No.: [Company
Identification No.] |
L24220GJ1991PLC016598 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
SRTM01621E |
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PAN No.: [Permanent
Account No.] |
AAACH7063F |
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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 and
Marketing of Printing Inks, Resins, Adhesives, Wire Enamels, Pigments, Flush
Colors and Fine Chemicals. |
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 40000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Micro Inks Limited,
a Bilakhia Group Company has its US based wholly owned subsidiary called –
Micro Inks Corporation. It is engaged in
manufacturing and marketing of Printing Inks, Resins, Adhesives, Wire
Enamels, Pigments and fine chemicals. The company is progressing well.
Financial position is good. Payments are correct and as per commitments. It can be
considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered
Office : |
Bilakhia House, Muktanand
Marg, Chala, Vapi – 396 191, Gujarat, India |
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Tel. No.: |
91-260-2462811 /
2460284 / 2460280 |
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Fax No.: |
91-260-2463932 /
2463733 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No. 2803/2,
Phase III, GIDC, Vapi – 396 195, Gujarat |
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Factory 2 : |
Survey No. 137/1,
Jani Vankad, Daman (Union Territory) |
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Factory 3 : |
Survey No. 11,
Village Morkhal Silvassa (Union Territory of Dadra & Nagar Haveli) |
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Factory 4 : |
Plot No. 808/E,
Phase II, GIDC, Vapi – 396 195, Gujarat |
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Factory 5 : |
Plot No. 808/E/P,
305/6, 305/7 (100% Export Oriented Unit), II Phase, GIDC, Vapi – 396 195,
Gujarat |
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Factory 6 : |
Survey No.
8/1/2/P, 9/P, 10/3, 10/4, 10/5, 8/2
Village Morkhal, Unit II, Silvassa (U.T. of Dadra and Nagar Haveli), India |
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Branches : |
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Overseas
Office 1 |
2850, Festive
Drive, Kankakee, Illinois 60901, USA |
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Tel
No : |
1815 929 9293 |
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Fax No : |
1815 929 9298 |
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E-mail : |
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Overseas
Office 2 |
6, Corrin Court, Wattle
Grove, NSW, 2173, Australia |
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Tel
No : |
61 298252880 |
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E-mail : |
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Overseas
Office 3 |
1410 B, New Town
Centre, No. 83 Lou Shan Guan Road, Shanghai – 200336, China |
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Tel
No : |
861 3052419983 |
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E-mail : |
DIRECTORS
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Name : |
Mr. Anjum
Bilakhia |
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Designation : |
Chairman |
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Date of Appointment : |
31.01.2007 |
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Qualification : |
Mr. Yunus G.
Bilakhia |
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Experience : |
Chairman [Upto
31.01.2007] |
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Name : |
Mr. Heinrich
Ringer |
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Designation : |
Executive Vice
Chairman |
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Name : |
Mr. Ashwani Bhardwaj |
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Designation : |
Managing Director
[From 31.01.2007] |
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Name : |
Mr. M. L. Bhakta |
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Designation : |
Director |
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Name : |
Prof. Pradip N.
Khandwalla |
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Designation : |
Director |
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Name : |
Mr. Hasmukh Shah |
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Designation : |
Director |
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Name : |
Mr. K. K. Unni |
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Designation : |
Director |
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Name : |
Ms. Ursula
Borgmann |
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Designation : |
Director |
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Name : |
Mr. Shivram Angne |
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Designation : |
Whole Time
Director |
KEY EXECUTIVES
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Name : |
Mr. Rammohan
Chari |
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Designation : |
Director –
Finance |
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Name : |
Mr. Ramkrishna
Kamat |
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Designation : |
Director –
Domestic Sales |
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Name : |
Mr. Vimal Mehra |
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Designation : |
Director –
International Business |
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Name : |
Mr. Zainul Lakdawala |
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Designation : |
Director – Research |
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Name : |
Mr. Umesh Sharma |
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Designation : |
Senior Vice
President – Human Resources & IT |
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Name : |
Dr. L N Chaturvedi |
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Designation : |
Vice President – Technology |
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Name : |
Mr. Anil Jain |
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Designation : |
Vice President – Manufacturing |
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Name : |
Mr. Aniruddha Joshi |
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Designation : |
General Manager – Procurement |
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Name : |
Mr. Hitesh Parikh |
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Designation : |
Sr. Vice President and Company Secretary |
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Name : |
Mr. Umesh Sharma |
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Designation : |
Sr. Vice President – Human Resources and IT |
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Name : |
Mr. Sundaresh Bhat |
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Designation : |
Sr. Vice President – Chief Financial Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.12.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian : |
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Bodies Corporate |
1119237 |
4.50 |
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Foreign : |
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Bodies Corporate |
17534718 |
70.50 |
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Institutions : |
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Mutual Funds /
Axis |
2144995 |
8.62 |
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Financial
Institutions / Banks |
1500 |
0.01 |
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Foreign
Institutional Investors |
1330403 |
5.35 |
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Non Institutions : |
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Bodies Corporate |
659143 |
2.65 |
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Individual
shareholders holding nominal |
1758321 |
7.07 |
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Share capital up
to Rs. 0.100 million |
288640 |
1.16 |
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Clearing Member |
14772 |
0.06 |
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Directors &
Relative of Directors |
2461 |
0.01 |
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NRIs &
Foreign Company |
17751 |
0.07 |
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TOTAL |
24871941 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer
and Marketer of Printing Inks, Resins, Adhesives, Wire Enamels, Pigments,
Flush Colors and Fine Chemicals. |
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Products : |
Item Code No. (ITC Code) 32151100 Product Description Printing
Inks Item Code No. (ITC Code) 32081001 Product Description Wire
Enamels Item Code No. (ITC Code) 35069100 Product Description Adhesives Item Code No. (ITC Code) 3909 Product Description Resins and
Varnished Item Code No. (ITC Code) 3204.17 Product Description
Pigments/Flush Colours |
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Exports : |
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Countries : |
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PRODUCTION STATUS 31.12.2007
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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Printing Inks |
MT |
203000 |
101116 |
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Resins and Varnish |
MT |
55600 |
31578 |
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Adhesives |
MT |
- |
- |
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Wire Enamels |
MT |
3450 |
2200 |
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Pigments/Flush
Colours |
MT |
46500 |
8688 |
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Fine Chemicals |
MT |
- |
- |
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Press Chemicals |
MT |
5000 |
927 |
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By Products |
MT |
- |
41 |
GENERAL INFORMATION
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No. of Employees : |
1222 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Deloitte Haskins
and Sells Chartered
Accountants |
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Holding Company : |
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Associates : |
-- Plot No. 303/6, II Phase, GIDC, Vapi, Gujarat, India -- Engaged in the manufacture of
Printing Inks, Flexo Gravire, Letter Press
Requisites, etc.
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Subsidiaries/ Group Company : |
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CAPITAL STRUCTURE
As on 31.12.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 millions |
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5500000 |
Preference Shares
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Rs.100/- each |
Rs.550.000 millions |
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Total |
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Rs.850.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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24871941 |
Equity Shares |
Rs.10/- each |
Rs.248.719 Millions |
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NOTE:
(Of the above shares 6,831,000 shares are allotted
as fully paid-up Bonus Shares by way of capitalisation of security premium).
[Of the above shares 17,534,718 (As at
31.12.2006, 17534718 Shares) are held by \MHM Holding GmbH, Germany, the
Holding Company]
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
31.12.2007 |
31.12.2006 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
248.720 |
248.720 |
248.720 |
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2] Share Application Moneys |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
7470.020 |
6939.440 |
7476.900 |
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4] Share Capital Suspense |
0.000 |
0.000 |
0.000 |
NETWORTH
|
7718.740 |
7188.160 |
7725.620 |
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LOAN FUNDS |
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1] Secured Loans |
1632.090 |
1248.360 |
1716.650 |
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2] Unsecured Loans |
707.700 |
584.110 |
100.000 |
TOTAL BORROWING
|
2339.790 |
1832.470 |
1816.650 |
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DEFERRED TAX
LIABILITIES |
387.200 |
339.010 |
413.700 |
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TOTAL
|
10445.730 |
9359.640 |
9955.970 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3380.000 |
3201.830 |
3330.740 |
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Capital work-in-progress |
191.870 |
219.590 |
74.660 |
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INVESTMENTS |
3889.340 |
3710.340 |
3691.560 |
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DEFFERED TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Interest Accrued on Investments |
0.010 |
0.010 |
0.010 |
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Inventories |
2050.600 |
2100.080 |
1417.000 |
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Sundry Debtors |
3247.300 |
2505.730 |
2664.110 |
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Cash & Bank Balances |
144.220 |
13.490 |
395.460 |
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Loans & Advances |
595.590 |
758.290 |
840.340 |
Total Current Assets
|
6037.720 |
5377.600 |
5316.920 |
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Less: CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2851.090 |
2954.210 |
2275.320 |
Provisions
|
202.110 |
195.510 |
182.590 |
Total Current Liabilities
|
3053.200 |
3149.720 |
2457.910 |
Net Current Assets
|
2984.520 |
2227.880 |
2859.010 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL
|
10445.730 |
9359.640 |
9955.970 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.03.2006 |
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Sales Turnover |
11488.010 |
7104.280 |
9181.020 |
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Other Income |
38.560 |
44.950 |
42.300 |
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Total Income |
11526.570 |
7149.230 |
9223.320 |
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Profit/(Loss) Before Tax |
824.040 |
[437.620] |
722.240 |
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Provision for Taxation |
142.870 |
[57.190] |
113.210 |
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Profit/(Loss) After Tax |
681.170 |
[380.430] |
609.030 |
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Earnings in Foreign Currency : |
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Total Earnings |
6141.970 |
3493.100 |
4512.660 |
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Imports : |
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Raw Materials |
3838.860 |
2781.510 |
2746.820 |
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Stores & Spares |
37.750 |
43.980 |
35.360 |
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Capital Goods |
0.830 |
0.000 |
3.350 |
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Others |
0.000 |
0.570 |
0.000 |
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Total Imports |
3877.440 |
2826.060 |
2785.530 |
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Expenditures : |
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Materials Consumed |
7957.700 |
5462.49 |
6083.840 |
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Manufacturing and Other Expenses |
2264.700 |
1824.70 |
2136.420 |
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lncrease/(Decrease) in Semi-Finished and Finished
Stock |
[55.370] |
[301.630] |
[182.160] |
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Interest |
204.310 |
230.06 |
216.670 |
|
|
Depreciation/Amortisation |
310.260 |
216.27 |
246.310 |
|
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Exceptional
Items |
20.930 |
154.960 |
0.000 |
|
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|
10757.9 |
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Total Expenditure |
10702.530 |
7586.850 |
8501.080 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
31.03.2008 |
30.06.2008 |
|
Type |
|
1st Quarter |
2nd Quarter |
|
Sales Turnover |
|
3218.900 |
3225.600 |
|
Other Income |
|
9.000 |
8.300 |
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Total Income |
|
3227.900 |
3233.900 |
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Total Expenditure |
|
2706.400 |
2877.100 |
|
Operating Profit |
|
521.500 |
356.800 |
|
Interest |
|
91.100 |
61.500 |
|
Gross Profit |
|
430.400 |
295.300 |
|
Depreciation |
|
77.600 |
78.400 |
|
Tax |
|
44.600 |
49.800 |
|
Reported PAT |
|
295.100 |
177.800 |
KEY RATIOS
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.03.2006 |
|
Debt Equity Ratio |
0.28 |
0.24 |
0.23 |
|
Long Term Debt Equity Ratio |
0.06 |
0.09 |
0.07 |
|
Current Ratio |
1.11 |
1.24 |
1.37 |
|
TURNOVER RATIOS |
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Fixed Assets |
2.61 |
2.29 |
2.40 |
|
Inventory |
5.93 |
5.79 |
7.42 |
|
Debtors |
4.27 |
3.95 |
3.52 |
|
Interest Cover Ratio |
3.95 |
[0.24] |
4.11 |
|
Operating Profit Margin (%) |
11.50 |
2.08 |
12.03 |
|
Profit Before Interest and Tax Margin (%) |
8.97 |
[0.75] |
9.56 |
|
Cash Profit Margin (%) |
8.07 |
[0.25] |
8.58 |
|
Adjusted Net Profit Margin (%) |
5.54 |
[3.08] |
6.11 |
|
Return on Capital Employed (%) |
11.56 |
[0.82] |
9.85 |
|
Return on Net Worth (%) |
9.14 |
[4.21] |
7.78 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Incorporated in 1991 Micro Inks Limited (Formerly known as
Hindustan Inks & Resins (HIRL)), is one of the largest ink companies in the
country. The company has made a presence in the market for liquid inks, resins,
adhesives and enamels. The company started its operations in the early 90s and
emerged as a market leader in India by 1999. Today the company has established
its presence in more than 70 countries and is one of the top 14 of the
World.
The company has a wide product portfolio and is the market leader in India. The
company has diversified into a number of related products and has undertaken a
backward integration programme for manufacturing pigments, flushes, resins and
additives - the critical raw materials for inks. The products are resins,
varnishes, pigments, waxes, flushes and printing inks. The company is the
second largest manufacturer of Alkali Blue, a special pigment. The main user
industries for printing inks are packaging, printing and publishing industry.
The printing ink industry essentially consists of four elements. These are
pigments, resins, additives and solvents.
The company has its manufacturing facilities at Silvassa, Vapi and Daman.
Silvassa manufacturing facility is one of the largest single-location ink
plants in the world, a backward integration plant at Vapi. The Silvassa plant
was commissioned in March 2000, while the Vapi plant was commissioned in August
2000.
In Oct. 2001, the company has commercially commissioned its 100% Export
Oriented Unit at Vapi having 30000 MT p.a. of flushed pigments and 100000 MT
p.a. of Inks manufacturing facilities. It has also commissioned Resins Plant at
Vapi-II unit having capacity of 25000 MT p.a. In September 2004 the company has
commissioned PLC controlled Liquid ink plant and Sheetfed ink plant at
Silvassa. Alkali Blue plant is one of the only three such plant in the
world.
All the plants of the company's are ISO 9001 certified for quality and four
plants are ISO 14001 certified for environment safty.
The subsidiaries of the company are Micro Inks Gmbh, Austria, Micro Inks
Corporation, USA, Micro Inks (Singapore) Pte Limited, Singapore, Micro Inks
International Trading (Shanghai) Co Limited, China, Micro Inks (Hong Kong)
Limited, Hong Kong and Hindustan Inks (Australia) Pty Limited, Australia.
It has the world's first ink ATM which gives printers access to small
quantities of ink.
The company has changed its name from Hindustan Inks and Resins to Micro Inks
Limited with effect from 3rd March 2004.
During 2005-2006, MHM Holding GmbH acquired 50.5% of the paid-up equity capital
of the company from the promoters of the company on February 3, 2006. Further
in accordance with applicable provisions of SEBI Regulations 1997, MHM Holding
GmbH acquired another 20% of the paid-up equity capital of the company. So at
present the aggregate holding of MHM Holding GmbH in the company stood at
70.5%. which has become the holding company of Micro Inks Limited
The companies production capacity of Printing Inks, Resins and varnish,
Adhesives, Wire Enamels, Fine Chemicals and Press Chemicals stood at 203000 MT,
52600 MT, 7800 MT, 3450 MT, 640 MT and 5000 MT respectively. The capacity of
Pigments/Flush Colours also expanded from 41500 MT to 46500 MT.
ECONOMIC
REVIEW
India is the forth-largest economy in the World and has the second largest GDP among the developing countries based on the purchasing power parity. The Indian economy is expected to grow around 8.7% annually. In the first half of the current fiscal (April to October) GDP grew by 9%.
Performance across most industries was good and there are visible developments
in areas like infrastructure, power etc. Though the rate of growth of Indian
economy will have some impact of developments in other parts of the World, the
Indian growth story will continue its journey.
The World Printing Ink Industry due to economic conditions in some part of the
World and due to the increasing cost pressures, both on manufacturing as well
as on the raw materials, had remained under pressure.
Ink industry in India grew by nearly 12% p.a. during the year. USA and Euro
Zone had a flat to negligible growth in 2007. Asia was the fastest growing
Printing Inks market.
PERFORMANCE
REVIEW
Consolidated net revenue grew by 28% and stood at Rs.15003
Million led by 10% growth in domestic market, 35% (in dollar terms) growth in US
market and growth of 64% in Rest of the World market (excluding USA and India)
backed on 152% growth in revenue from the hubergroup worldwide.
DOMESTIC SALES:
The Domestic net sales and other Operating Income grew by 10% at Rs.5202
Million. The Company continues to maintain its leadership position in the
Indian Printing Inks market due to superior products and introduction of new
technology received from the hubergroup.
EXPORTS:
Consolidated international sales stood at Rs.9801 Million contributing
65% of total net sales and other operating income.
The sales of US subsidiary stood at US $130 Million for the year compared to
sales of US $72.3 Million of the previous nine months period. During the year,
Micro Inks, through its wholly owned subsidiary, Micro Inks GmbH, Austria,
acquired Hostmann-Steinberg Inc., USA, a wholly owned subsidiary of the
hubergroup and has been merged effective February 01, 2007, with Micro Inks
Corporation, USA (MIC), a wholly owned subsidiary and then the name of MIC has
been changed to Hostmann-Steinberg Inc., USA.
Company's sales to Rest of the World stood at Rs.4418 Million for the year
compared to Rs.2112 Million in the previous period of nine months.
PROFITABILITY:
During the year, the Company's consolidated EBIDTA stood at Rs.1516
Million compared to Rs.53 Million for the previous period of nine months. The
EBIDTA was higher due to higher volumes backed by improvements in manufacturing
process and better price realisations. The Net Profits at consolidated level
was Rs.666 Million for twelve months period under review compared to Net Loss
of Rs.455 Million for the pervious period of nine months.
FINANCE
During the year, the consolidated interest was lower by Rs.18
Million and stood at Rs.255 Million compared to Rs.273 Million for the pervious
period of nine months mainly on account of:
- Appreciation of rupee against dollar
- Decrease in LIBOR linked interest rates
Overall debt increased by Rs.46 Million and stood at Rs.3216 Million as on December
31, 2007 on improvement of sales to capital employed to 1.82 times from 1.54
times and Net Working Capital to 3.87 times from 3.46 times.
The interest cost as a percentage of sales stood at 1.7% against 3.1% in the
previous financial period on increased sales.
STRATEGIC INVESTMENTS
China businesses of the hubergroup were restructured during the year and accordingly the Board of the Company approved sale of Micro Inks International Trading (Shanghai) Company Limited China, a wholly owned subsidiary, to Huber Inks (Shenzhen) Limited, a related party, at a net book value as at the date of the actual transaction. In order to meet the regulatory requirements of China, which will enable previously mentioned sale, during the year, the Company made further investment of US $ 0.5 Million (USD Five Hundred Thousand only) in Micro Inks (Singapore) Pte. Limited, Singapore, a wholly owned subsidiary of the Company, which in turn has invested in Micro Inks International Trading (Shanghai) Company Limited, China. The sale will be concluded after necessary regulatory approvals.
The statement pursuant to Section 212 of the Companies Act, 1956, is annexed to
this Annual Report.
Company GmbH, Austria and Micro Inks (Singapore) Pte. Limited, during the year
has not carried out any commercial activities except investments.
During the year Micro Inks (Australia) Pty. Limited, a subsidiary of Company's
subsidiary Micro Inks (Singapore) Pte. Limited, has been deregistered effective
August 04, 2007.
OUTLOOK
Post alliance and integration Micro Inks business with the hubergroup companies increased manifold. Integration of group operations worldwide has been the key to their healthy performance during the year, apart from healthy growth of printing industry in India, which has resulted into good domestic demand for printing inks.
Post re-alignment of geographies with the hubergroup Micro Inks has refocused
on its new global territories.
With the benefits of alliance and integration started to coming in, the Company
will grow steadily and will become more stable and safe against adverse
developments in the International markets.
New! NKREDIBLE technology in the offset segment has been well received
by the customers making company the technology leader in this very
competitive market.
Appreciating rupee and the Rising Raw material prices continue to be an area of
concern. Rising crude price has not only resulted in steep increase in prices
of various raw materials; it has had its adverse price effect on the vegetable
oil and another key raw materials used in manufacturing of printing inks and
its intermediates.
International business including the US business is expected to grow steadily
but slowly on increased reach and depth with an aim of maximising shareholders'
returns as one of the valuable Company of the hubergroup.
CONTINGENT
LIABILITIES
|
PARTICULARS |
31.12.2007 (RS.
IN MILLIONS) |
|
|
|
|
Counter Guarantees Given to
Bankers |
12.920 |
|
Corporate Guarantees Given to Bankers on behalf of the
Subsidiary Company (USD 15.00 Millions) |
591.380 |
|
Loan Given to Bankers to
Subsidiary Company on the security of certain assets of the company (USD Nil) |
- |
|
Un-expired letters of credit |
1903.81 |
|
Disputed Income Tax, Sales Tax
and Central Excise Matters which are contested by the company |
155.490 |
|
Bills Discounted |
122.760 |
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW
Company is a Subsidiary
of the hubergroup which has a history of more than 240 years in Ink business
with a network of companies worldwide and over 200 international sales and
delivery centres through its subsidiaries, branches and presence of local
representatives with an annual sales of about USD 750 million in CY07.
The hubergroup is an international group of autonomous companies that is
focused on the manufacture and sale of Printing Inks, Printing Varnishes,
Damping Solution Additives, Printing Auxiliaries, Filler Material for
telecommunication cables. Micro Inks Limited, headquartered at Vapi (in the
State of Gujarat) with manufacturing units at Vapi, Daman (in the Union
Territory of Daman and Diu), Silvassa (in the Union Territory of Dadra and
Nagar Haveli) and a wholly owned subsidiary, at Kankakee near Chicago,
Illinois. The company has a fully integrated seamless ink manufacturing unit
and is present across the value chain of the printing inks industry, viz.,
Pigments, Flush Pigments, Resins and Varnishes, Additives and Printing Inks.
The Company has a wide product portfolio and is the market leader in
India.
The combined know-how of a global enterprise and its intensive research and
development ensure that our innovative product line remains technologically
ahead, with consistent quality. Together with its subsidiaries and affiliates
in the hubergroup, the company is one of the world's leading printing ink
manufacturers. This leading and pioneering position has been achieved by
implementing state-of-the-art research and production facilities and by
offering an innovative product range for the Printing industry.
The combined annualised sales of the hubergroup including Micro Inks will be
about USD 1.2 billion
2007 - The Year of Integration and Synergy
Economy and the Printing industry
The Indian economy is sustaining its growth momentum at a
rate of about 8-9% annually with stable political and economic regime. The
industrial & service sector saw a growth of about 12% throughout 2007 and
was stable while related industries in FMCG, Packaging, Media and Entertainment
sectors met industry expectations. However the year 2007 saw a steep
appreciation of about 11% in the USD/INR exchange rate and on the other hand
crude prices touched USD 100 per barrel putting pressure on margins.
Printing ink market domestically continued to grow at about 12%, a market of
about Rs.15 billion saw augmenting its turnover on the back of buoyant growth
and the overall economic upturn in its user industries such as FMCG, newspaper,
flexible packaging and publishing and with higher investments by printers on
back of newer players entering the Indian market and consumers expecting global
quality standards. These developments have further improved company position as
a market leader as it has absorbed global technology upon integration with the
hubergroup, the parent company, giving it an edge over competition.
The Global printing ink market of USD 14.5 billion seen growing at about 4-5%
annually, split evenly between North America, Europe and Asia-Pacific. While
the North American and European sales have flattened out, the Asia-Pacific
region continues to grow at a fast pace of about 10%, and should soon become
the largest region in terms of ink consumption, driven by economic growth in
China, India and other key countries.
Company in the year 2007 witnessed realignment of its global
business and has prepared itself a strong platform to perform as mother plant
to the rest of the hubergroup worldwide apart from servicing its wholly owned
subsidiaries. The Company also absorbed the newer technologies from the
hubergroup and introduced new products worldwide, which have been accepted well
in the market.
Company consolidated net revenues grew by 28% to Rs.15,003 million compared to
the corresponding previous period on an annualised basis; with a growth of 10%
in domestic market and 41% in international revenues. Net consolidated Profit
for the year was Rs.666 million up 210% compared to previous period on
annualised basis despite Increase in input costs.
Hostmann-Steinberg Inc. (HST), USA, a wholly owned subsidiary of Micro Inks
Limited, India, witnessed a growth of 35% in dollar terms to USD 130 million.
The HST standalone net profit for the year stood at USD 0.41 million.
REVENUES
CONSOLIDATED
REVENUES:
Consolidated net revenues grew by 28% at Rs.15,003 million as compared to
previous year on annualised basis, on higher volumes, better realisations and
commencement of sourcing to the hubergroup.
Revenues from General Inks grew by 31%, Liquid inks by 9% and Resins by 40%
compared to corresponding previous year on annualised basis. Printing Inks
volumes grew by 13% compared to previous year on annualised basis.
TRADE TERMS
- Abhideep
Chemicals Private Limited
- Akry
Organics Private Limited
- Bharat
Resins Limited
- Baijnath
Plastic Products Private Limited
- Bhabani
Pigments Private Limited
- Chemfilt
- Chemiefine
- Dakle
Industrial Plastics
- Delta
Corporations
- Hans
Chemicals
- Inmarco
Industrial Maintenance Private Limited
- Kangaroo
Industries
- K. L. J.
Polymers and Chemicals Limited
- Mahalaxmi
Wood Industries
- Maximaa
Systems Limited
- Mechwell
Industries
- Mehta Petro
Refineries Limited
- Mech Form
- Metal
Shapers
- Newpar
Aromatic Private Limited
- NTP Tar
Products Private Limited
- Panorma
Industries
- Pragati
Industries
- Polygel
Specialities
- Rahul
Dyestuff Private Limited
- Raj
Lubricants (Madras) Limited
- Selcan
Packaging Private Limited
- Shri
Plastics
- Shyam
Chemicals Private Limited
- Silva
Printing and Packaging
- Spectra
Specialities
- Sudish
Chemicals Private Limited
- Sun Bright
Pigments Private Limited
- Sun Colours
and Chemicals
- United
Barrel Supply Company
- Bell
Hydromatics
- Elder
Instruments Private Limited
- Ideal Dye
Chem Industries
- Joy Closures
Private Limited
- Noble
Polymers
- Polycab
Wires Private Limited
- Rishi Petro
Chem Private Limited
- Ratnagiri
Chemicals Private Limited
- Shah
Enterprises
- Shri
Plastics
- Stan Pack
Industries
- Stoplik
Services India Private Limited
FIXED ASSETS
- Free Hold Land
- Lease Hold Land
- Buildings
- Plant and Machineries
- Laboratory Equipments
- Wind Mills
- Computers
- Furniture and Fittings
- Vehicles
- Intangible Assets (Software)
AS PER
WEB DETAILS
Subject is part of the
Huber Group, Germany
Today, through the years of growth, MICRO has transformed itself into a
multi-dimensional, multi-national company offering a comprehensive range of
quality products, efficient customer service and a wide distribution network.
Micro Inks the market leader in
India commanding a market share of above 30% (and more than 40% share of the
organised sector). Total printing ink market in India is estimated to
around US $ 400 million p.a. In the process, it also created an enviable track
record of one of the fastest growing company. And took its annual sales figures
galloping from a mere US $ 5 million in 1993 - 94 to an astonishing increase to
US $ 240 million.
Through the years of growth, Micro
Inks has transformed itself into a multi-dimensional, multi- location company
offering a comprehensive range of quality products, efficient customer service
and a wide distribution network. In India, It is a marketing powerhouse with 12
branches, 5 technical centers and around 500 distributors.
Micro Inks is also the only
Printing Inks company in India, and amongst two or three companies in the
world, to have successfully implemented SAP / R3 ERP solution, integrating its
marketing offices through satellite links.
Together all the elements will
work as a single force to offer value to its customers.
Today the company with a modest
beginning has grown and consolidated its strengths, skills and people to
achieve a unique enterprise. One which is on its way to becoming a major player
in the global market. A reality, which it achieved through a well thought out
and executed business strategy.
Here the Company's core strategy
is to offer better value to its customers on the price quality matrix and
participating in their programs to deliver better value to the customers'
customer. At Micro Inks they starve for having customers' delight and not only
customers' satisfaction.
To make this strategy a success,
the Company has stepped up its R&D efforts in order to develop superior
products. On a parallel front, Micro Inks has developed technology for backward
integration into flushed colours, pigments, resins and additives - the key raw
materials for inks. By doing so, Micro Inks is today the only company in the
world to be self sufficient in all the critical raw materials of Printing Inks.
The next thing on its agenda was
to accelerate its inks manufacturing capacities to keep pace with the global
demand. This was done with by MICRO with the setting up of one of the world's
largest ink manufacturing facilities at a single location, in India.
This plant at Silvassa has a
world-size capacity of 60,000 metric tonnes. Here Micro Inks manufactures a
wide range of inks with innovative and unique process technologies that have
never been attempted before in the industry. Apart from this, another world
size plant has been set up at Vapi, which produces a wide range of flushed
colours, pigments and resins in a single-stream plant for 'seamless'
manufacturing of inks.
Finally, all this is to be backed
by the best of technical support and customer service. All translating
ultimately into one fact, Micro Inks is poised to make an indelible mark on the
world.
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 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.48.43 |
|
UK Pound |
1 |
Rs.84.54 |
|
Euro |
1 |
Rs.65.91 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|