MIRA INFORM REPORT

 

 

Report Date :

06.04.2011

 

IDENTIFICATION DETAILS

 

Name :

LORD INDIA CHEMICAL PRODUCTS PRIVATE LIMITED

 

 

Formerly Known As :

UNILOK ADHESIVES AND CHEMICALS PRIVATE LIMITED

 

 

Registered Office :

A/401-404, 4th Floor, 215-Atrium, Chakala, Andheri Kurla Road, Andheri (E), Mumbai – 400093, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2009

 

 

Date of Incorporation :

12.09.1985

 

 

Com. Reg. No.:

11-037482

 

 

CIN No.:

[Company Identification No.]

U24295MH1985PTC037482

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

The Company is engaged in manufacture and supply of Industrial Adhesives.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 550000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

A/401-404, 4th Floor, 215-Atrium, Chakala, Andheri Kurla Road, Andheri (E), Mumbai – 400093, Maharashtra, India

E-Mail :

balan_mahadevan@lord.com

 

 

DIRECTORS

 

As On 25.09.2009

 

Name :

Mr. Atul Patankar

Designation :

Executive Director

Address :

A/24 Ultra Hsg. Soc. Lt Dilip Gupte Marg, Mahim, Mumbai – 400016, Maharashtra, India

Date of Appointment :

16.11.2005

 

 

Name :

Jonathan Douglas Oechsle

Designation :

Director

Address :

1115 Grogans Mill Drive Cary North Caronline 27519

Date of Birth/Age :

23.10.1964

Date of Appointment :

21.01.2009

DIN No.:

02488956

 

 

Name :

Teas Lynn Oechsle

Designation :

Director

Address :

1115 Grogans Mill Drive Cary North Caronline 27519

Date of Birth/Age :

25.04.1966

Date of Appointment :

21.01.2009

DIN No.:

02609395

 

 

Name :

Mr. Edward Charles Gustin II

Designation :

Director

Address :

3B, 127 Repulse Bay Road, Repulse Bay ABDABD45

Date of Birth/Age :

08.11.1952

Date of Appointment :

21.01.2009

DIN No.:

02646265

 

 

Name :

Mr. Joseph William Carmelo Ralph Marotta

Designation :

Director

Address :

5408 Catmint CT, Holly Springs, NC Null 275408759

Date of Birth/Age :

20.03.1951

Date of Appointment :

23.09.1999

Date of Cessation :

21.02.2009

DIN No.:

02756927

 

 

Name :

Mr. Vilas Vaman Dhavale

Designation :

Managing Director

Address :

703, Solitude CHS, Bhogoji Keer Marg, Mahim, Mumbai - 400 016, Maharashtra, India

Date of Appointment :

07.06.2007

DIN No.:

01642505

 

 

Name :

Mr. David Erwin Siporin

Designation :

Director

Address :

Flat No. A 46/F AIG Burth, 12 Tregenter Path, Mid Levels, Hong Kong

Date of Appointment :

16.11.2005

DIN No.:

02488938

 

 

Name :

Hirokazu Hideo Omoto

Designation :

Additional Director

Address :

774-11 Oaza Onma Koshi Gaya-Shi Saitama – Ken, Japan

Date of Appointment :

13.05.2002

Date of Cessation :

21.01.2009

DIN No.:

02488976

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As On 25.09.2009

 

Names of Shareholders

 

No. of Shares

Lord Corporation – United States

 

87499

Lord Far East Inc. – Japan

 

1

Total

 

87500

 

As On 25.09.2009

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The Company- is engaged in manufacture and supply of Industrial Adhesives.

 

 

 

PRODUCTION STATUS (AS ON 31.03.2009)

 

Particulars

 

Unit

Installed Capacity

Actual Production

Special bonding adhesive and diluents

 

Ltrs

1208000

593701

 

 

GENERAL INFORMATION

 

Bankers :
  • Not available

 

 

Facilities :

Unsecured Loans

31.03.2009 (Rs. In Millions)

31.03.2008 (Rs. In Millions)

Deferred sales tax loan

6.305

6.510

Total

6.305

6.510

 

Company has availed of interest free Sales Tax Deferral Loans under following

said schemes:

a Part I of the 1983 Package Scheme of Government of Maharashtra, deferred for period of 12 years and repayable in six annual installments, and

 

b. Part I of the 1988 Package Scheme of Government of Maharashtra, deferred for a period of 10 years and repayable in five annual installments.

 

 

 

Banking Relations :

--

 

 

Financial Institute :
  • The Maharashtra State Financial Corporation – New Excelsior Building, A.K Nayak Marg, Fort, Mumbai – 400001, Maharashtra, India

 

 

Auditors :

 

Name :

S. R. Batliboi and Associates

Chartered Accountant

Address :

6th Floor, Express Towers, Nariman Point, Mumbai – 400021, Maharashtra, India

Pan No.:

AABFS3421N

 

 

Holding Company :
  • Lord Corporation

 

 

Fellow Subsidiaries :
  • Lord Far East Inc., Japan
  • Lord Germany GmbH
  • Lord Asia Pacific Limited, Hong Kong
  • Lord (Thailand) Limited
  • Lord Chemical Products (Malaysia)
  • Lord Int’I Trading (Shanghai) Co.

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000

Equity Shares

Rs. 100/- each

Rs. 10.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

87500

Equity Shares

Rs. 100/- each

Rs. 8.750 Millions

 

 

 

 

 

Notes:

a) 2,880 Equity shares (Previous year 2,880) are allotted as fully paid-up in consideration other than cash m terms of the scheme of amalgamation of Material Testing Machines Private Limited with the Company sanctioned by the High Court of Judicatures of Bombay on 13.03.1987.

 

b) 87,500 Equity shares (Previous year 87,500) are held by Lord Corporation, USA the holding company.

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

8.750

8.750

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

131.206

152.874

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

139.956

161.624

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

0.000

2] Unsecured Loans

 

6.305

6.510

TOTAL BORROWING

 

6.305

6.510

DEFERRED TAX LIABILITIES

 

2.192

1.951

 

 

 

 

TOTAL

 

148.453

170.085

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

56.923

37.605

Capital work-in-progress

 

0.000

12.080

 

 

 

 

INVESTMENT

 

15.142

20.514

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 
37.640

49.184

 

Sundry Debtors
 
61.039

59.025

 

Cash & Bank Balances
 
10.636

18.192

 

Other Current Assets
 
0.000

0.000

 

Loans & Advances
 
9.962

13.314

Total Current Assets
 
119.277

139.715

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 
8.578

14.911

 

Other Current Liabilities
 
30.804

20.671

 

Provisions
 
3.507

4.247

Total Current Liabilities
 
42.889

39.829

Net Current Assets
 
76.388

99.886

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

148.453

170.085

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2009

31.03.2008

 

SALES AND OTHER INCOME

 

368.486

424.305

 

 

 

 

 

Less

EXPENSES

 

198.474

210.128

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

 

170.012

214.177

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

 

6.980

5.712

 

 

 

 

 

 

PROFIT BEFORE TAX

 

163.032

208.465

 

 

 

 

 

Less

TAX                                                                 

 

56.004

70.853

 

 

 

 

 

 

PROFIT AFTER TAX

 

107.028

137.612

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

39.847

59.354

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

 

10.705

13.800

 

 

Interim Dividend

 

109.813

122.500

 

 

Dividend Tax

 

18.663

20.819

 

BALANCE CARRIED TO THE B/S

 

7.694

39.847

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

 

31.949

54.451

 

TOTAL EARNINGS

 

31.949

54.451

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

 

78.816

115.744

 

 

Capital items

 

1.104

0.447

 

 

Computer software

 

0.207

2.465

 

 

Inspection and testing

 

0.000

0.029

 

TOTAL IMPORTS

 

80.127

118.685

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

1223.18

1572.71

 

 

 

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2009

31.03.2008

PAT / Total Income

(%)
 

29.05

32.43

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

92.53

117.56

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

1.16

1.29

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

0.35

0.29

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

2.78

3.51

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

NATURE OF OPERATIONS:

Lord India Chemical Products Private Limited ('the Company') was incorporated in India as a Private Limited Company under the Companies Act, 1956 on 12.09.1985. The Company- is engaged in manufacture and supply of Industrial Adhesives.

 

NOTES:

The Registered Office of the company has been shifted from 310-311, Dynasty Business Park, J. B. Nagar, Andheri – Kurla Road, Andheri (East), Mumbai – 400069, Maharashtra, India to the present address w.e.f 02.12.2009

 

 

BUSINESS PERFORMANCE:

In spite of global recession since October 2008, and the economic slowdown in India, the Company could maintain its market presence and the sales of Chemlok products were dropped only by 5.5% as compared to previous year and the profits before tax and depreciation, before extra ordinary items were lower only by 5.7%.

The Company expects the economic climate to improve in the coming months and there is good prospect for growth in the coming months.

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR:

a) Sales tax of R3. 2,095,977 (Previous year Rs. 2.096 millions) for financial year 2000-01 in respect of which the Company has gone into an appeal.

b) Income tax of Rs. Nil (Previous year Rs. 0.553 million) for assessment year 2003-04, the appeal for which has been decided in favour of the company during the year.

c) Service tax of Rs. Nil' ('Previous year Rs. 0.256 million) for financial year 2002-03 and financial year 2003-04, the appeal for which has been decided in favour of the company during the year.

d) There are no claims against the company that are not acknowledged as debts.

 

 

FIXED ASSETS:

  • Leasehold Land
  • Leasehold improvements
  • Buildings and roads
  • Plant and machinery
  • Furniture and fixtures
  • Office equipments
  • Computers
  • Vehicles
  • Computer software

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.45

UK Pound

1

Rs.71.59

Euro

1

Rs.63.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

50

 

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

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

-

NB

                                       New Business

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.