MIRA
INFORM REPORT
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Report Date : |
19.08.2011 |
IDENTIFICATION DETAILS
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Name : |
NEOGEN CHEMICALS LIMITED |
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Registered Office : |
115 Vardhman Industrial Complex, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
07.03.1989 |
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Com. Reg. No.: |
11-50919 |
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Capital Investment / Paid-up Capital : |
Rs.15.000 millions |
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CIN No.: [Company
Identification No.] |
U24200MH1989PLC050919 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMN10061C |
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PAN No.: [Permanent
Account No.] |
AAACN5836E |
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Legal Form : |
A Closely held public limited Liability Company |
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Line of Business : |
Manufacturer of Organic and Inorganic Chemicals such as Bromine and
Lithium |
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No. of Employees : |
65 Approximately |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (46) |
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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 340000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered normal for business dealing 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.
INFORMATION PARTED BY
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Name : |
Madam Madhavi Kulkarni |
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Designation : |
Account Manager |
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Contact No.: |
91-9769483963 |
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Date : |
16.08.2011 |
LOCATIONS
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Registered Office : |
115 Vardhman Industrial Complex, |
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Tel. No.: |
91-22-21723716 |
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Mobile No. : |
91-9769483963 (Madam Madhavi Kulkarni) |
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Fax No.: |
91-22-21721083 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Factory : |
43 TTC Industrial Area, Opp. Electronic Zone, Mahape, Navi Mumbai, |
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Area : |
20000 Sq. ft. |
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Location : |
Owned |
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Godown : |
Godown No. 1, 2, 3 and 4, Patil Compound, Bhiwandi, Mumbai, |
DIRECTORS
As on 15.09.2010
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Name : |
Mr. Haridas Thakarshi Kanani |
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Designation : |
Chairman cum Managing Director |
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Address : |
802, |
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Date of Birth/Age : |
30.09.1945 |
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Date of Appointment : |
07.03.1989 |
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DIN No. : |
00185487 |
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Name : |
Mrs. Beena Haridas Kanani |
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Designation : |
Whole Time Director |
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Address : |
802, |
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Date of Birth/Age : |
15.07.1947 |
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Date of Appointment : |
07.03.1989 |
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DIN No. : |
00185791 |
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Name : |
Mr. Jayprakash Harilal Akkad |
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Designation : |
Director |
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Address : |
Kumud Bhavan, 2, |
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Date of Birth/Age : |
13.12.1950 |
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Date of Appointment : |
16.08.1991 |
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Name : |
Mr. Sanjay Mehta |
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Designation : |
Director |
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Address : |
6, Vatika, |
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Date of Ceasing : |
22.12.2006 |
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DIN No. : |
00002817 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 15.09.2010
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Names of Shareholders |
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No. of Shares |
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Haridas Thakarshi Kanani |
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1049430 |
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Beena Haridas Kanani |
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225000 |
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Haren Haridas Kanani |
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150000 |
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Pallika Haridas Kanani |
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75000 |
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Mohit Punamchand Shah |
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10 |
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B T Kaushal |
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10 |
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H T Kanani (HUF) |
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520 |
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P P Shah (HUF) |
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10 |
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Parthasarthi Krishnakumar Rana |
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10 |
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Sanjay Mehta |
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10 |
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Total |
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1500000 |
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Directors
or relatives of directors |
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99.99 |
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Others
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0.01 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Organic and Inorganic Chemicals such as Bromine and
Lithium |
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Products : |
·
Bromine ·
Lithium
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Exports : |
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Products : |
·
Chemicals ·
Bromine and Lithium |
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Countries : |
·
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Imports : |
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Products : |
Liquid Bromine |
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Countries : |
·
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Terms : |
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Selling : |
L/C and Credit |
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Purchasing : |
L/C and Credit |
PRODUCTION STATUS AS ON 31.03.2010
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Organic Chemicals |
Kgs. |
NA |
1200000 |
827415 |
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Inorganic Chemicals |
Kgs. |
NA |
1200000 |
1059979 |
GENERAL INFORMATION
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Customers : |
Manufacturer |
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No. of Employees : |
65 Approximately |
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Bankers : |
·
State Bank of Wagle Industrial Estate Branch, Road No.
22, Wagle Estate, Thane – 400 604, ·
Bank of Wagle Industrial Estate Branch, Road No.
22,Wagle Estate, Thane, Mumbai-400 064, |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Hitesh Reshmwala Associates Chartered Accountants |
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Address : |
302, Ambar, |
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Tel. No.: |
91-22-26245529 |
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Associates : |
Paragon Enterprises Address : 115 Vardhman Industrial Complex, Line of Business : Trader of Chemicals |
CAPITAL STRUCTURE
After 15.09.2010
Authorised Capital : Rs.27.500 Millions
Issued, Subscribed & Paid-up Capital : Rs.15.000
Millions
As on 15.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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1500000 |
Equity Shares |
Rs.10/- each |
Rs.15.000 millions |
|
500000 |
Preference Shares |
Rs.10/- each |
Rs.5.000 millions |
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Total |
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Rs.20.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1500000 |
Equity Shares |
Rs.10/- each |
Rs.15.000 millions |
FIANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
15.000 |
19.770 |
19.770 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
69.275 |
56.552 |
48.113 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
84.275 |
76.322 |
67.883 |
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LOAN FUNDS |
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1] Secured Loans |
98.811 |
72.496 |
79.382 |
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2] Unsecured Loans |
30.161 |
54.095 |
45.166 |
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TOTAL BORROWING |
128.972 |
126.591 |
124.548 |
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DEFERRED TAX LIABILITIES |
9.597 |
8.671 |
7.037 |
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TOTAL |
222.844 |
211.584 |
199.468 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
80.456 |
74.149 |
56.997 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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Advance for Capital Goods |
0.156 |
0.995 |
12.999 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
99.184
|
108.814 |
110.604 |
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Sundry Debtors |
60.588
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53.192 |
48.279 |
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Cash & Bank Balances |
9.615
|
14.109 |
7.382 |
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Other Current Assets |
30.167
|
28.297 |
26.590 |
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Loans & Advances |
16.387
|
18.120 |
10.581 |
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Total
Current Assets |
215.941
|
222.532 |
203.436 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
62.998 |
70.045 |
59.609 |
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Other Current Liabilities |
5.201
|
0.862 |
5.818 |
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Provisions |
5.510
|
15.185 |
8.537 |
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Total
Current Liabilities |
73.709
|
86.092 |
73.964 |
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Net Current Assets |
142.232
|
136.440 |
129.472 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
222.844 |
211.584 |
199.468 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Sales |
380.179 |
350.477 |
287.335 |
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Other Income |
4.541 |
2.292 |
7.733 |
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TOTAL (A) |
384.720 |
352.769 |
295.068 |
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Less |
EXPENSES |
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Raw Material Consumed |
172.335 |
179.677 |
166.610 |
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Purchases made for re-sale |
0.000 |
0.000 |
6.372 |
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Consumption of stores and spares |
1.462 |
2.136 |
0.316 |
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(Increase) / decrease in finished goods, work-in-progress |
31.470 |
2.754 |
(14.184) |
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Salaries, wages and bonus |
3.971 |
3.875 |
8.277 |
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Managerial Remuneration |
2.406 |
2.220 |
0.936 |
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Payment of auditors |
0.180 |
0.180 |
0.180 |
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Insurance Expenses |
0.812 |
0.846 |
0.816 |
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Power and fuel |
13.078 |
16.460 |
2.699 |
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Other Expenditure |
97.739 |
89.847 |
84.101 |
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TOTAL (B) |
323.453 |
297.995 |
256.123 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
61.267 |
54.774 |
38.945 |
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Less |
INTEREST (D) |
28.923 |
27.887 |
16.820 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
32.344 |
26.887 |
22.125 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5.776 |
5.017 |
3.845 |
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PROFIT BEFORE TAX
(E-F) (G) |
26.568 |
21.870 |
18.280 |
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Less |
TAX (H) |
9.578 |
9.140 |
10.168 |
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PROFIT AFTER TAX
(G-H) (I) |
16.990 |
12.730 |
8.112 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
36.059 |
30.632 |
28.680 |
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Less |
APPROPRIATIONS |
|
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|
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|
Transfer to General Reserve |
2.000 |
2.000 |
2.000 |
|
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|
Preference Shares Redemption Reserve |
0.000 |
1.012 |
1.025 |
|
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|
Proposed Dividend on Equity Shares
(Prorata) |
3.000 |
3.000 |
2.013 |
|
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Dividend on Preference Shares |
0.647 |
0.668 |
0.667 |
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Corporate Dividend Tax |
0.620 |
0.623 |
0.455 |
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BALANCE CARRIED
TO THE B/S |
46.782 |
36.059 |
30.632 |
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EARNINGS IN
FOREIGN CURRENCY |
95.718 |
110.337 |
37.006 |
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IMPORTS |
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Raw Materials |
82.872 |
64.978 |
44.425 |
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TOTAL IMPORTS |
82.872 |
64.978 |
44.425 |
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Earnings Per Share
(Rs.) |
11.33 |
-- |
-- |
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Particulars |
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|
31.03.2011 |
|
Sales Turnover (Approximately) |
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|
420.000 |
The above information has been parted by Madam Madhavi Kulkarni
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.42
|
3.61 |
2.75 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.97
|
6.24 |
6.36 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
8.96
|
7.37 |
7.02 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.29 |
0.27 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.40
|
2.79 |
2.92 |
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Current Ratio (Current Asset/Current Liability) |
|
2.93
|
2.58 |
2.75 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
|
Particulars |
As
on 31.03.2010 Rs.
in millions |
As
on 31.03.2009 Rs.
in millions |
As
on 31.03.2008 Rs.
in millions |
|
Sundry Creditors for Goods |
57.465 |
63.848 |
55.047 |
|
Sundry Creditors for Expenses |
5.533 |
6.197 |
4.562 |
|
Total |
62.998 |
70.045 |
59.609 |
TRADE REFERENCES
·
Solaris Chem Tech Limited, Mumbai
·
Mody Chemi – Pharma Private Limited, Mumbai
OPERATIONS
The volume growth of the sales for the year was 20.87% which is the
normal growth rate of the company, however due to lower unit price of raw
material and finished product during the year, value growth of net sales
excluding excise and VAT tax was 11.42%, however profit growth was maintained
at 21.55%.
FORM 8
|
Corporate identity number of the company |
U24200MH1989PLC050919 |
|
Name of the company |
NEOGEN CHEMICALS LIMITED |
|
Address of the registered office or of the principal place of business in |
115 Vardhman Industrial Complex, |
|
This form is for |
Modification of charge |
|
Charge identification (ID) number of the charge to be modified |
90142236 |
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Type of charge |
Immovable property |
|
Particular of charge holder |
State Bank of Wagle Industrial Estate Branch, Road No. 22, Wagle Estate, Thane – 400
604, |
|
Nature of instrument creating charge |
Memorandum for recording extension of mortgage by deposit of title
deeds covering enhanced limits and/or creation of equitable mortgage on
additional properties for existing limit and enhanced limits and additional
facilities. |
|
Date of instrument Creating the charge |
22.02.2011 |
|
Amount secured by the charge |
Rs.236.600 millions |
|
Brief of the principal terms an conditions and extent and operation of
the charge |
Rate of Interest WC - Interest at 5% Margin above the BR Which is presently 8.25% p.a.
w.e.f 03.01.11. Present Effective rate 13.25% p.a Terms of Repayment The Fresh Corporate Loan for Rs.29.300 millions is to be repaid. The
Fresh Term Loan for Rs.20.000 millions is to be repaid. All other existing
Term Loans of the Company will continue to be repaid as per the original
terms and conditions of the sanction. Margin Ram Materials (Imported) - 25%, Ram Materials (Indigenous) - 25%, Semi
finished goods - 40%, Finished goods - 33.33%, Components / Consumable /
Spares - 25%, Domestic receivables (90 days) - 25%, Export Packing Credit -
10%, Term Loan (Fresh) - 25%, LC - 15%, BG - 15%. Extent and Operation of the charge Security to cover Principal amount together with interest, costs,
charges and expenses etc. Others DCC - Rs.95.000 millions, (Sub limit for BD within overall DCC Limit)
(Rs.77.500 millions), (EPC Limit within overall DCC limit) (Rs.50.000
millions), (EBP/EBD Non LC limit within overall DCC Limit) - (Rs.30.000
millions), Corporate Loan Fresh - Rs.29.300 millions, Corporate Loan Existing
- Rs.13.300 millions, TL Fresh - Rs.20.000 millions, TL Existing - Rs.11.000
millions, LC (Inland/Import) - Rs.65.000 millions, BG (Within overall NFB
Limit) (Rs.10.000 millions),FCL Sales/Purchase Rs.150.000 millions (Notional
ind @ 2% of FC Limit) Rs.3.000 millions, Total - Rs.236.600 millions. |
|
Short particulars of the property or asset(s) charged (including
complete address and location of the property) |
·
Plot No. 43, TTC Industrial Area, Mahape, Navi
Mumbai, All that piece or parcel of land known as Plot No. 43, in the Trans
Thane Creek, Industrial Area, within the village limit of Mahape, ·
Taluka and Registration, Sub District Thane
District and Registration District Thane containing by ad measurement 1842
sq. mtrs. or thereabouts and bounded as follows: ·
On or towards the North by - |
|
Particulars of the present modification |
The Borrowers by way of equitable mortgage by deposit of title deeds of
Immovable properties at Plot No. 43, TTC Industrial Area, Mahape, Navi Mumbai
has provided further security to secure the Enhanced Facility Rs.236.600
millions. |
FIXED ASSETS
· Land
·
· Plant and Machineries
· Furniture and Fixtures
· Quality Control Installments
· Office Equipments
· I T Equipments
· Motor Car
· R and D Equipment
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
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.45.61 |
|
|
1 |
Rs.75.32 |
|
Euro |
1 |
Rs.65.68 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
|
46 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.