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MIRA INFORM REPORT

 

 

Report Date :

20.04.2011

 

IDENTIFICATION DETAILS

 

Name :

VPL CHEMICALS PRIVATE LIMITED

 

 

Registered Office :

No. 27, 1st Floor, Behind the Club, Nayandahalli, Mysore Road, Bangalore-560039, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

26.11.1999

 

 

Com. Reg. No.:

08-25992

 

 

CIN No.:

[Company Identification No.]

U24222KA1999PTC025992

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRV07054F

 

 

PAN No.:

[Permanent Account No.]

AABCV1467C

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Temperature Indicating Crayons, Labels, Sensors, Liquid and Metal Markers, etc.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 30000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered for business dealings with some cautions.

 

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

 

 

INFORMATION PARTED BY

 

Name :

Ms. Mamta

Designation :

Director

Contact No.:

91-80-28601336

Date :

16.04.2011

 

 

LOCATIONS

 

Registered Office / Factory :

No. 27, 1st Floor, Behind the Club, Nayandahalli, Mysore Road, Bangalore-560039, Karnataka, India

Tel. No.:

91-80-28605670/28601336

Mobile No.:

91-80-28601336 (Ms. Mamta)

Fax No.:

91-80-28601336

E-Mail :

vplchem@vplchemicals.com

info@vplchemicals.com

Area :

2500 Sq. Ft

Location :

Owned

 

 

DIRECTORS

 

As on 30.09.2010

 

Name :

Mr. Yarriswamy Pateel

Designation :

Director

Address :

No, 383, 9th Cross BCC Layout, Vijaynagar, II Stage, Bangalore – 560040, Karnataka, India

Date of Birth/Age :

01.05.1972

Qualification :

Graduate

Date of Appointment :

14.11.2005

 

 

Name :

Mr. Sasidhar Gowd Patil

Designation :

Director

Address :

No.3091, 8th Cross,14th B main, R P C Layout, Vijay Nagar 2nd Stage, Bangalore – 560040, Karnataka, India

Date of Birth/Age :

01.07.1970

Qualification :

Graduate

Date of Appointment :

26.11.1999

 

 

Name :

Mr. Sreedhar Gowd Patil

Designation :

Director

Address :

No.3091, 8th Cross,14th B main, R P C Layout, Vijay Nagar 2nd Stage, Bangalore – 560040, Karnataka, India

Date of Birth/Age :

10.06.1971

Qualification :

Graduate

Date of Appointment :

27.01.2005

 

 

Name :

Mr. Ravindra Kandu Rai Tikate

Designation :

Director

Address :

No. 506, Krishna Towers, Kapur Boundinaka, S.V. Road, Thane, Mumbai, Maharashtra, India

Date of Birth/Age :

11.08.1955

Date of Appointment :

21.06.2006

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2010

 

Names of Shareholders

 

No. of Shares

Sasidhar Gowd Patil

 

4000

Sreedhar Gowd Patil

 

3000

Yarriswamy Pateel

 

3000

 

 

 

Total

 

10000

 

As on 30.09.2010

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Temperature Indicating Crayons, Labels, Sensors, Liquid and Metal Markers, etc.

 

 

Exports :

 

Countries :
  • Singapore
  • Dubai

 

 

Terms :

 

Selling :

Cash / Credit

 

 

Purchasing :

Cash / Credit

 

 

GENERAL INFORMATION

 

Customers :

Retailers

 

 

No. of Employees :

15 (Approximately)

 

 

Bankers :
  • State Bank of India, Vyalikaval Branch
  • State Bank of Mysore, Vyalikaval Branch, II Main Road, Bangalore-560011, Karnataka, India
  • State Bank of Mysore, Dobbespet Branch, No. 435/452/4, 1st Floor, Uddaneswara Complex, N.H. No. 4, Service Road, Dobbespet-562111, Karnataka, India

 

 

Facilities :

Secured Loan

As on 31.03.2010

(Rs. in Millions)

As on 31.03.2009

(Rs. in Millions)

State Bank of Mysore Cash Credit

(Secured by book debts and stocks)

2.176

0.327

State Bank of Mysore Term Loan

(Secured by machinery and other equipments)

0.016

0.198

Total

2.192

0.525

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Mr. B. Venugopala Reddy

Chartered Accountant

Address :

No. 56 Ground Floor, 4th Main 2nd Phase, Manjunathanagar, Bangalore-560039, Karnataka, India

Tel. No.:

91-80-23157643

Mobile No.:

91-9448671521

 

 

CAPITAL STRUCTURE

 

As on 30.09.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

10000

Equity Shares

Rs.10/- each

Rs.0.100 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

10000

Equity Shares

Rs.10/- each

Rs.0.100 Million

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

0.100

0.100

0.100

2] Share Application Money

5.651

2.402

0.254

3] Reserves & Surplus

1.769

0.307

(0.076)

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

7.520

2.809

0.278

LOAN FUNDS

 

 

 

1] Secured Loans

2.192

0.525

0.764

2] Unsecured Loans

1.250

0.000

0.312

TOTAL BORROWING

3.442

0.525

1.076

DEFERRED TAX LIABILITIES

0.034

0.019

0.000

 

 

 

 

TOTAL

10.996

3.353

1.354

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

9.988

1.176

0.723

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1.051
0.761

0.675

 

Sundry Debtors
1.063
1.283

0.809

 

Cash & Bank Balances
4.871
0.681

0.001

 

Other Current Assets
0.116
0.030

0.008

 

Loans & Advances
0.319
1.429

0.257

Total Current Assets
7.420
4.184

1.750

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
6.290

1.923

 

Other Current Liabilities
0.000
0.019

1.124

s

Provisions
0.136
0.093

0.037

Total Current Liabilities
6.426
2.035

1.161

Net Current Assets
0.994
2.149

0.589

 

 

 

 

MISCELLANEOUS EXPENSES

0.014

0.028

0.042

 

 

 

 

TOTAL

10.996

3.353

1.354

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

26.095

10.095

3.656

 

 

Other Income

0.219

0.091

NA

 

 

TOTAL                                     (A)

26.314

10.186

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Office Expenses

 

 

 

 

Administrative Expenses

23.680

9.220

NA

 

 

Advertising Expenses

 

 

 

 

 

TOTAL                                     (B)

23.680

9.220

NA

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

2.634

0.966

0.473

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

0.058

0.176

0.129

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

2.576

0.790

0.344

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.445

0.183

0.122

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

2.131

0.607

0.222

 

 

 

 

 

Less

TAX                                                                  (H)

0.668

0.224

0.037

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1.463

0.383

0.185

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

0.307

(0.076)

(0.261)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

1.770

0.307

(0.076)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

25.448

9.296

2.797

 

 

 

 

 

 

IMPORTS

6.306

0.535

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

146.26

0.51

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
5.55

3.76

NA

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
8.17

6.01

6.07

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
12.24

11.32

8.97

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.28

0.22

0.80

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.31

0.91

8.05

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.15

2.06

1.50

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Note: The registered office of the company has been shifted from No. 3091, 8th Cross, 14th B Main, RPC Layout, Vijay Nagar, 2nd Stage, Bangalore, Karnataka, India to the present address w.e.f. 15.02.2008.

 

Business Operations:

 

Sales figures gave reasonably good satisfaction compared to last financial year though there were many ups and downs in the international market. As usual, participation in International trade fairs/exhibitions helped us to a reach many new customers in Europe, South America, South East Asian countries. About 15 new customers, which included both domestic and international, were added to the exiting list

 

They were informed by AllAlloy Dynaweld Pte Limited, Singapore about the opening of new marketing office in Australia. As expected the performance of AllAlloy Dynaweld was extremely good, therefore to all the Directors have taken a decision to entrust the marketing responsibility of VPL products in Australian market also apart from its already allocated regions i.e., Singapore, Malaysia, 'Thailand, Vietnam, Indonesia and China.

 

It was observed that there is a huge potential for Paint Markers also. In this direction efforts were also made to develop the product in house. Because of obvious technical reasons and excess work load, it was decided to import the product from Japan at a most economical price. Accordingly a source was identified and imported the paint markers and sold in the domestic and international market. However, exporting of this product is a bit difficult as it falls under dangerous goods class otherwise sales could have been much more.

 

R and D, Head could successful develop the Temperature Indicating Liquid. However it was decided to not to release into the market, it might create impact on Thermo label business. Attempted to develop reversible temperature indicating labels as these labels have great potential in health industry. However, it needs great amount of time and dedication; hence the product R and D is underway.

 

 

Because of our participation in International Trade Fair in Germany, two wholesalers from USA approached us for taking the product on their private labels. Efforts have been underway to tip-up with these players. All the Directors are agreed fulfill the legal formalities before introducing the product in the USA market.

 

It is note worthy achievement that 1.2 Acres of land has been acquired in the Sompura Industrial Area, Dhabaspet for setting of bulk drugs / fine chemical manufacturing unit.

 

Bankers Charges Report as per Registry

 

This form is for

Creation of charge

Corporate identity number of the company

U24222KA1999PTC025992

Name of the company

VPL CHEMICALS PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

No. 27, 1st Floor, Behind the Club, Nayandahalli, Mysore Road, Bangalore-560039, Karnataka, India

Type of charge

Book Debts

Movable Property (not being pledge)

Floating Charge

Particular of charge holder

State Bank of Mysore, Dobbespet Branch, No. 435/452/4, 1st Floor, Uddaneswara Complex, N.H. No. 4, Service Road, Dobbespet-562111, Karnataka, India

Email

rjr.cs69@gmail.com

Nature of description of the instrument creating or modifying the charge

Agreement of loan cum hypothecation form adv-2.

Date of instrument Creating the charge

24.12.2010

Amount secured by the charge

Rs.39.500 Millions.

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

WCL/TL - at 1.25% above base rate, present effective rate 9.00% p.a. At monthly rests.

 

Terms of Repayment

WCL - on demand. Advance is for a period of 12 months.

 

Term loan : in 60 months of Rs 0.575 Millions  each with a moratorium of 12 months, monthly

Interest to be serviced as and when charged.

 

Margin

RM/SFG/FG/CCS - 25%,  Receivables - 40%

EPC : 25%,  Term Loan : 42.51%

 

Extent and Operation of the charge

Exclusive first charge on the assets of the company and to the full extent.

 

Others

Cash credit Rs. 2.500 Millions; term loan Rs 34.500 Millions; EPC Rs 2.500 Millions; total Rs. 39.500 Millions.

 

 

Note: form 8 in respect of creation of charge made on 21.12.2010 for Rs. 39.500 Millions  is

Pending registration at roc office vide srn no b03016888 filed on 13.01.2011, kindly keep this in abeyance.

Short particulars of the property charged

I)              Hypo. of company's present and future movable fixed assets and current assets like stocks, raw materials, semi finished and finished goods, book debts, receivables, outstanding monies, bills, rights,

II)             Stores, components, furniture and fittings; other movables, plant and machinery, vehicles and assets to be purchased out of bank finance.

 

 

Fixed Assets:

 

  • Computer
  • Furniture and Fixtures
  • Office Equipments
  • Plant and Machinery
  • Vehicles

 

 

 

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.44.68

UK Pound

1

Rs.72.56

Euro

1

Rs.63.53

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--CREDIT LINES

1~10

2

--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

 

29

 

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.