MIRA INFORM REPORT

 

Report Date :

02.07.2011

 

IDENTIFICATION DETAILS

 

Name :

PRIVI ORGANICS LIMITED

 

 

Registered Office :

“Privi house”, A-71, TTC, Thane Belapur Road, Near Koparkhairne Rail Station, Navi Mumbai – 400709, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

05.04.1982

 

 

Com. Reg. No.:

11-26867

 

 

Capital Investment / Paid-up Capital :

Rs.357.274 millions

 

 

CIN No.:

[Company Identification No.]

U24120MH1982PLC026867

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMP17382B

 

 

PAN No.:

[Permanent Account No.]

AAACP4717A

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Aromatic Raw materials for the Fragrance and Flavour industry.

 

 

No. of Employees :

350 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 11000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

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.

 

 

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 :

Mr. Narayan Iyer

Designation :

VP Finance

 

 

LOCATIONS

 

Registered Office :

“Privi house”, A -71, TTC, Thane Belapur Road, Near Koparkhairne Rail Station, Navi Mumbai – 400709, Maharashtra

Tel. No.:

91-22-27783040-48

Fax No.:

91-22-27783049

E-Mail :

privi@bom3.vsnl.net.in

rameshk@privi.co.in

Website :

www.privi.com

Area :

10000 sq. ft.

Location :

Owned

 

 

Corporate Office :

111-A, Karimjee Bldg, 2nd Floor, M.G.Road, Opp Mumbai University,
Fort, Mumbai- 400 023, Maharashtra, India

Tel. No.:

91-22- 22662626

Fax No.:

91-22- 22623950

 

 

Factory 1 :

A7, MIDC, Mahad, Raigad – 402 309, Maharashtra

Tel. No. 91-2145-232122

Fax No: 91-2145-233494

Location : Owned

 

 

Factory 2 :

C4 and 5, MIDC, Mahad, Raigad – 402 309, Maharashtra

Tel No: 91-2145-233245 / 232122

Fax No: 91-2145-233754 / 233494

Location : Owned

 

 

DIRECTORS

 

As on : 15.11.2010

 

Name :

Mr. Mahesh P.Babani

Designation :

Director

Address :

Satguru House, Sherley Rajan Raod, Opp. Carter Road, Bandra, Mumbai;400 050, Maharashtra

Date of Birth/Age :

01.04.1958

Qualification :

Graduate

Date of Appointment :

15.11.1989

 

 

Name :

Mr. Doppalapudi B.Rao

Designation :

Director

Address :

903, Daffoldils, Satguru Gardens, Thane(East) ;400603, Maharashtra

Date of Birth/Age :

10.05.1946

Qualification :

Graduate

Date of Appointment :

05.04.1982

 

 

Name :

Mr. Ramchand Vatnani

Designation :

Director

Address :

New Hibndustan Co-op Housing Society, 113/36, 25th Road, Bandra (west), Mumbai;400 050, Maharashtra

Date of Birth/Age :

06.05.1952

Qualification :

Graduate

Date of Appointment :

18.03.1999

 

 

Name :

Mr. Anoop P. Babani

Designation :

Director

Address :

Satyam House, Sherly Rajan Road, Bandra(West), Mumbai;400 050, Maharashtra

Date of Birth/Age :

27.05.1954

Qualification :

Graduate

Date of Appointment :

18.03.1999

 

Directorship in other companies :

 

CIN of Company:

U29249MH1987PTC04458

Name of the company:

M J Biopharm private limited

Designation:

Director

 

 

CIN of Company:

U67190DL2005PTC141426

Name of the company:

Avigo Capital Partners Private Limited

Designation:

Director

 

 

CIN of Company:

U34300DL2005PTC133336

Name of the company:

Super Hoze Industries Private limited

Designation:

Director

 

 

CIN of Company:

U74899DL19990PLC041985

Name of the company:

Tecpro Systems Limited

Designation:

Director

 

 

Name :

Mr. Arjan Advani

Designation :

Director    

Address :

38, Suneeta Building, 3rd Floor, Opposite Colaba Post, Office, Colaba, Mumbai – 400 005, Maharashtra

Date of Birth/Age :

10.10.1936

Date of Appointment :

01.04.2005

 

 

Name :

Mr. Satan S Bharwani

Designation :

Director    

Address :

Amarjeevan, St. Martin Road, Bandra, Mumbai – 400 050, Maharashtra

Date of Birth/Age :

01.09.1936

Date of Appointment :

01.04.2005

 

 

Name :

Mr. Rajesh H Budhrani

Designation :

Director    

Address :

1605, Penensula Plaza, 16th Floor, 111, North bridge Road, Singapore 0617

Date of Birth/Age :

01.08.1970

Date of Appointment :

11.08.2005

 

 

Name :

Mr. Vivekanand Subramanian

Designation :

Director    

Address :

B-5/A, GF Kailash Colony, New Delhi – 110 048

Date of Birth/Age :

28.12.1974

Date of Appointment :

09.02.2007

 

 

Name :

Mr. Saifuddin Hakimuddin Dhorajiwala

Designation :

Alternate Director    

Address :

WI-C091, Wellington Estate, DLf City, Phase 5, Gurgaon – 122 002, Haryana

Date of Birth/Age :

09.08.1977

Date of Appointment :

12.02.2009

 

 

KEY EXECUTIVES

 

Name :

Mr. Ramesh Vishanlal Kathuria

Designation :

Secretary

Address :

Shilp – II, Flat No. 504, The Residency CHS, LBS Marg, Thane – 400 604, Maharashtra

Date of Birth/Age :

08.05.1963

Date of Appointment :

01.07.2006

 

 

Name :

Mr. Ramesh Kathuria

Designation :

Company Secretary

Address :

Shilp – Ii, Flat No.504, The Residency CHS, L.B.S. Marg, Thane – 400604, Maharashtra, India

Date of Birth/Age :

08.05.1963

Date of Appointment :

01.07.2006

 

 

MAJOR SHAREHOLDERS

 

As on : 15.11.2010

 

Names of Shareholders

 

No. of Shares

Equity Shares 

 

 

 

 

 

D.B.Rao

 

548450

Mahesh P. Babani

 

1813100

Ashok P. Babani

 

57250

Vivira Investment and Trading Company Private Limited, India

 

269800

Bhagwan N. Lalwani

 

50

Naveen Malkani

 

50

D. Vinay Kumar

 

365471

D. Vijay Kumar

 

133041

S R Pritmani

 

50

Mohan Malkani

 

50

V. Rajyalakshmi

 

50

 

 

 

Redeemable Cumulative Convertible Preference Shares

 

 

Avigo Trustee Company Private Limited, New Delhi

 

1200

Avigo Venture Investments Limited, Mauritius 

 

10799

 

 

 

Total

 

11999

 

 

 

Fully Compulsory Convertible Preference Shares

 

 

Avigo Trustee Company Private Limited, New Delhi 

 

1200

Avigo Venture Investments Limited, Mauritius 

 

10800

 

 

 

Total

 

12000

 

As on : 15.11.2010

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign Holdings (FIIs / Fcs / FFIs / NRIs / OCBs)

 

17.58

Bodies corporate

 

14.66

Directors or relatives of directors

 

55.94

Other top fifty shareholders

 

11.82

 

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Aromatic Raw materials for the Fragrance and Flavour industry.

 

 

Products :

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

Units of measures

Installed Capacity Quantity

 

 

 

Aromatic Chemicals at A-7, MIDC, Mahad

MT

2340

Aromatic Chemicals at C-4/C5/C3/C6/C8

MT

6000

 

 

 

           

 

GENERAL INFORMATION

 

No. of Employees :

350 (Approximately)

 

 

Bankers :
  • ING Vysya Bank Limited. (IVB) Opera House Baranch, Patel Cahmbers, Mumbai;400 007.
  • Punjab National Bank, (PNB) Ilaco House, Sir P.M. Road, Fort, Mumbai;400001
  • Central Bank of India, (CBI) 1st Floor, M.B. Raod, Fort, Mumbai;400023
  • Corporation Bank, (CB) Veena Chambers, Dalal Street, fort, Mumbai-400023
  • Bank of Baroda, (BOB) Mulji Jetha Building, 185/187, Princess Street, Mumbia;400002 (Joined the consortium w.e.f 31.01.2005)
  • Export Import Bank of India, Cuffe Parade, Mumbai

 

 

Facilities :

 

Secured Loans

31.03.2010

(Rs. In Millions)

31.03.2009

(Rs. In Millions)

Loans from financial institutions

 

 

Term loans in Indian Rupees

152.381

152.381

Term loans in Foreign Currency (USD)

45.435

68.378

Vehicle Loans (Secured by hypothecation of the respective vehicles)

1.430

2.956

Loan from banks

 

 

Term loans in Foreign Currency (USD)

354.060

329.273

Vehicle Loans (Secured by hypothecation of the respective vehicles)

0.099

0.603

Working Capital Loans

231.489

420.101

 

 

 

Total

784.894

973.692

 

Notes:

 

a) Term loans and vehicle loans from banks and financial institutions include amounts repayable within one year aggregating to Rs.124.324 (2009: Rs.159.876). During the current year the Company has restructured the term loans by which the term of the loans have been extended by additional year.

 

b) Loan from financial institutions include Rupee Term Loan From Exim Bank Rs.152.381 and Term loan from Exim Bank in foreign currency USD 100654.296 equivalent to Rs.45.435 are secured by a first mortgage on the Company's immovable properties both present and future ranking pari passu interest and a first charge by way of hypothecation of all the Company's assets (save and except book debts and inventories) including movable machinery (save and except spares tools and accessories) both present and future subject to charges created in favour of the Company's bankers for inventories, book debts and other specified movable for securing the borrowings of Working Capital and by way of personal guarantees of Directors and their relatives.

 

c) Loan from banks include Term loan from Bank of Baroda in foreign currency USD 132969.920 equivalent to Rs.60.023 (2009: USD 146266.005 equivalent to Rs.74.523) and Term loan from ABN Amro Bank in foreign currency USD 6513.888 equivalent to Rs.294.037 (2009: USD 5,000,000 equivalent to Rs. 2,54.750) are secured by a first mortgage on the Company's immovable properties both present and future ranking pari passu interest and a film charge by way of hypothecation of all the Company's assets (save and except book debts and inventories) including movable machinery (save and except spares tools and accessories) both present and future subject to charges created in favour of the Company's bankers for inventories, book debts and other specified movable for securing the borrowings of Working Capital and by way of personal guarantees of Directors and their relatives.

 

d) Working Capital Loan from banks are secured by way of hypothecation of inventories both on hand and in transit and book debts and other receivables both present and future and also secured by way of second charge on fixed assets, Collateral Security of Land by way of Equitable Mortgage of Immovable property belonging to a Director and his family members and by way of personal guarantees of Directors and their relatives.

 

Unsecured Loans

31.03.2010

(Rs. In Millions)

31.03.2009

(Rs. In Millions)

Loans from Shareholders

0.470

0.570

Sales Tax Deferred

62.726

65.922

Loans from Department of Bio-technology

3.120

1.560

 

 

 

Total

66.316

68.052

 

1. Amount repayable within one year is and Nil (2009 and Nil)

 

2. The Company has received two installments of Grant-in-aid and loan from the Department of Biotechnology, Ministry of Science and Technology under Small Business Innovation Research Initiative (SBIRI) scheme for "Enzyme Catalyzed Manufacture of esters" out of the sanctioned Grant-in-aid of Rs. 3.000 and loan of Rs. 6.240. The aid is received in the form of Grant for the revenue expenditure Rs.0.750 (2009: Rs 0.750) on research and development and has been credited as income and loan Rs.1.560 (2009: Rs 1.560) for funding the man-power costs in relation to the Project. The loan is repayable to the Government in ten equal yearly installments with effect from March, 2011.

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name 1:

BRV And Associates

Chartered Accountant

Address :

301,Crystal Tower,46/48, Maruti Lane Near Handloom House, Fort, Mumbai - 40001, Maharashtra

 

 

Name 2:

BSR Associates

Chartered Accountants 

Address :

Lower Parel, Mumbai, Maharashtra

Tel. No.:

91-22-39896000

Fax No.:

91-22-39836000

 

 

Memberships :

Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion   Council

Fragrances and Flavours Association of India.

 

 

Associates/Subsidiaries :

·         Satguru Construction (Andheri)

·         Vivara Chemical Industries

·         Vivara Chemicals Private Limited

·         Privi Pharma Private Limited

·         Minar Organics Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

16000000

Equity Shares 

Rs. 10/- each

Rs.160.000 millions

12000

0.1% Redeemable Cumulative Convertible Preferences Shares

Rs. 10000/- each

Rs.120.000 millions

12000

0.1% Fully Compulsorily Convertible Preferences Shares

Rs. 10000/- each

Rs.120.000 millions

 

 

Total

Rs.400.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

11728431

Equity Shares 

Rs. 10/- each

Rs.117.284 millions

11999

0.1% Redeemable Cumulative Convertible Preferences Shares

Rs. 10000/- each

Rs.119.990 millions

12000

0.1% Fully Compulsorily Convertible Preferences Shares

Rs. 10000/- each

Rs.120.000 millions

 

 

Total

Rs.357.274 millions

 

NoteS:

 

Out of the above 8065360 Equity Shares  of Rs. 10/- each issued as fully paid bonus by utilizing balance in securities premium account and profit and loss account.

 

As the shareholders agreement the redeemable cumulative convertible preferences shareholders have a right to exercise an option based on the audited financials as at 31.03.2009. Notwithstanding the foregoing, the same shall get automatically converted as on 31.12.2010.

 

As per the shareholder’s agreement the compulsorily convertible preference shares shall be converted on 31.12.2010 based on the profit after tax as required in the audited financials as at 31.03.2009. the shareholders have not exercised the right of conversion.

 

 

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

357.274

357.274

357.274

2] Share Application Money

0.000

0.000

0.100

3] Reserves & Surplus

457.068

287.922

354.086

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

814.342

645.196

711.460

LOAN FUNDS

 

 

 

1] Secured Loans

784.894

973.692

687.759

2] Unsecured Loans

66.316

68.052

66.892

TOTAL BORROWING

851.210

1041.744

754.651

DEFERRED TAX LIABILITIES

49.169

9.550

44.358

 

 

 

 

TOTAL

1714.721

1696.490

1510.469

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

882.679

741.982

502.543

Capital work-in-progress

133.942

222.004

315.233

 

 

 

 

INVESTMENT

3.336

2.662

3.287

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
619.749
610.855

600.777

 

Sundry Debtors
675.090
604.869

543.354

 

Cash & Bank Balances
109.467
106.949

63.766

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
206.242
142.602

133.657

Total Current Assets
1610.548
1465.275

1341.554

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
858.242
726.250

647.819

 

Provisions
59.375
12.547

10.117

Total Current Liabilities
917.617
738.797

657.936

Net Current Assets
692.931
726.478

683.618

 

 

 

 

MISCELLANEOUS EXPENSES

1.833

3.364

5.788

 

 

 

 

TOTAL

1714.721

1696.490

1510.469

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

2627.697

2294.180

1929.914

 

 

Other Income

9.625

10.203

6.523

 

 

Foreign Currency Fluctuations Gain (Net)

115.683

0.000

34.829

 

 

TOTAL                                     (A)

2753.005

2304.383

1971.266

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing Expenses

274.154

260.283

246.760

 

 

Administrative Expenses

90.698

121.403

104.840

 

 

Raw Material Consumed

1865.182

1570.789

1442.286

 

 

Foreign Currency Fluctuation Loss (Net)

0.000

171.003

0.000

 

 

Increase/(Decrease) in Finished Goods

12.151

1.270

(117.410)

 

 

Personal Costs

99.017

89.086

69.843

 

 

Other Expenditure

0.234

12.726

0.000

 

 

TOTAL                                     (B)

2341.436

2226.560

1746.319

 

 

 

 

 

Less

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

411.569

77.823

224.947

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

81.857

106.416

77.414

 

 

 

 

 

 

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

329.712

(28.593)

147.533

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

94.363

67.780

52.835

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

235.349

(96.373)

94.698

 

 

 

 

 

Less

TAX                                                                  (I)

65.922

(30.490)

23.559

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

169.427

(65.883)

71.139

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

134.845

201.009

130.027

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Dividend

0.240

0.240

0.134

 

 

Tax on Dividend

0.041

0.041

0.023

 

BALANCE CARRIED TO THE B/S

303.991

134.845

201.009

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1683.452

1335.148

1182.644

 

TOTAL EARNINGS

1683.452

1335.148

1182.644

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1334.391

997.624

911.496

 

TOTAL IMPORTS

1334.391

997.624

911.496

 

 

 

 

 

 

Earnings Per Share (Rs.)

14.43

(5.62)

6.39

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)

6.15

(2.86)

3.60

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

8.95

(4.20)

4.91

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets)

(%)

9.43

(3.96)

4.38

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.28

(0.15)

0.13

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.17

2.76

1.99

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

9.50

1.98

2.04

 

 

LOCAL AGENCY FURTHER INFORMATION

 

BACKGROUND

 

Privi Organics is manufacturer, supplier and exporter of aroma chemicals.

 

Privi started manufacturing aroma chemicals in the year 1992 with only two products, which it gradually expanded to a range of over 50 products. Privi also develops and produces custom-made aroma chemicals as per specific requirement of the customer. The Company's manufacturing units are located at Mahad. Privi's in-house Research and Development centre at Mahad has been accorded recognition by the Department of Scientific and Industrial Research.

 

FINANCIAL AND OPERATIONAL REVIEW:

 

The year marked stabilization of their growth plans embarked upon in the last three years. After experiencing one of the biggest global economic and financial meltdown witnessed in 2008-09 - since the 1931 recession – the Company has been able to smartly turn around its performance and has achieved a Profit before Tax of Rs. 235.349 millions. The Company achieved a net sales turnover of Rs. 2627.697 millions (Previous year Rs. 2294.180 millions) registering a growth of 15%. While the export sales turnover grew by 25%, the local sales turnover grew by a modest 13%.

 

The Company's net worth as on March 31, 2010 was Rs. 812.509 millions, with paid-up capital of Rs. 357.274 millions, accumulated reserves and surplus of Rs. 457.068 millions as reduced by Rs. 1.833 millions miscellaneous expenditure not written off.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

India's economy grew at 8.6%, its fastest pace in six months in the quarter through March 2010, fuelled primarily by government and consumer spending. India's GDP growth for the whole fiscal 2009-10 was estimated to be 7.4 %, compared with 6.8% attained in 2008-09, ending with betterthan- expected growth rate. The Index of Industrial Production numbers has also shown an improvement. The industrial production grew at 10% for the 1 I-month period, i.e. from April 2009 to February 2010, which is much higher than the growth achieved in the previous year ; the industrial growth rate has further accelerated in 201 1. However, idation and fiscal deficit continue to be major concerns for the government.

 

India's chemical industry is expected to grow into a 150 billion dollar (about Rs.0.704 millions) market by 2013, riding on fast economic growth and strong domestic demand. India's chemical industry has a promising future and is expected to see around 9-10 per cent growth annually. The main drivers propelling the growth include the lower cost advantage, substantial domestic demand and government focus on providing incentives, along with improving inhtructure capabilities.

 

Moreover, India also possesses a rich source of talent and skilled people, which also makes it attractive for global firms.

 

GLOBAL FRAGRANCE MARKET OVERVIEW:

 

The economic environment continued to be difficult during the year 2009-10 and hence was a testing year for the global fragrance market. The adverse economic conditions caused drop in consumer spending in mature markets, particularly in discretionary segment such as fine fragrance.

 

Segments such as Consumer products proved their natural resilience across global markets. Consumer products business across globe fared well in the developing countries and demand was strong in Brazil, India and Chma.

 

The first quarter of financial year was challenging, but in the subsequent quarters demand improved providing business momentum throughout the year.

 

Keeping abreast of customer requests and constantly striving to demand-supply changes, the Company has been creating a diversified product portfolio. This has resulted in growth of sales and an improved bottom line.

 

OUTLOOK

 

The Company has seen revival in demand for its products early this year. Large buyers like Firmenich and Givaudan have seen positive signs in terms of business momentum from Q2 of calendar year 2009. The demand for consumer products has been strong in Brazil, India and China, from where the top five fragrance houses see their growth. Demand for consumer products in developed nations such as the USA, Europe and Japan has been resilient. The Company sees its growth coming from key accounts in emerging and developing countries and its product mix will enable the Company to increase its share of revenue coming from specialty aroma chemicals. Future Projects and expansion

 

The Company is further consolidating its strength in its flagship products namely DHMOL and Amber Fleur through backward integration process. Processing of Crude Sulphate Turpentine (CST) to obtain both Alpha Pinene and Beta Pinene is underway, along with augmenting of the production capacities

 

CST processing would lower the cost of manufacturing DHMOL and Amber Fleur and also provide raw material security which has been a cause of concern in the past few years.

 

The Company is also in the process of setting up a multi-product specialty chemical plant for production of new products. These strategically selected products have been successfully manufactured at the pilot plant and samples of the same have been approved by our major customers. These products and the use of petrochemical-based raw materials, rather than citral and pinenes, whose availability in sufficient quantities has become difficult should give us good margins.

 

The Directors are confident that based on the strategies outlined above, the Company's performance should improve in the financial year 2010-1 1 onwards. However, external factors such as changes in general economic and business conditions due to global economic outlook, currency exchange rates and interest rates, introduction of competing products, levy of higher duties by importing countries could materially affect the demand for the products of the Company and thereby affect the performance projections.

 

form 8:-

 

 

Name of the company

PRIVI ORGANICS LIMITED

Presented By

ING Vysya Bank Limited

1) Date and description of instrument creating the change
  • Working Capital Construction Agreement
  • Joint Deed of Hypothecation both dated 4th March 2004 and create single charge

2) Amount secured by the charge/amount owing on the securities of charge

Rs.285.000 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation by way of first pari passu charge on whole of the current assets viz. stock of raw material, stock in process, Semi finished and finished goods, stores and spares not relating to plant and machinery, equipments, vehicle, computers, furniture, fixture, wherever or wherever  in transit both present and future

4) Gist of the terms and conditions and extent and operation of the charge.

Interest and margin as per sanction letter of respective banks.

Security to secure funded and non-funded facilities granted by INB Vysya Rs.91.500 Millions (F-Rs.31.500 Millions, NF- Rs.60.000 Millions) PNB Rs.40.000 Millions Rs.20.000 Millions, NF-Rs.20.000 Millions)CBI Rs.70.000 Millions (F-Rs.30.000 Millions, NF-Rs.40.000 Millions)and CB Rs.83.500 Millions (f-Rs.33.500 Millions, NF- Rs.50.000 Millions) together with interest, cost, expenses, charges, commission etc.

5) Name and Address and description of the person entitled to the charge.

  • ING Vysya Bank Limited. (IVB) Opera House Branch, Patel Chambers, Mumbai - 400 007.
  • Punjab National Bank, (PNB) Ilaco House, Sir P.M. Road, Fort, Mumbai - 400001
  • Central Bank of India, (CBI) 1st Floor, M.B. Road, Fort, Mumbai;400023
  • Corporation Bank, (CB) Veena Chambers, Dalal Street, fort, Mumbai-400023
  • Bank of Baroda, (BOB) Mulji Jetha Building, 185/187, Princess Street, Mumbia;400002

(Joined the consortium w.e.f 31.01.2005)

6) Date  and brief description of instrument modifying the charge

Second Supplemental Joint Deed of Hypothecation dated 20.12.2005

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The original Charge dated 04.03.2004 for Rs.285.000 Millions was modified on 31.01.2005 enhancing the total charge from Rs.285.000 Millions to Rs.475.000 Millions consisting of funded and non-funded facilities granted by INB Vysya Rs.131.500 Millions (F-rs.61.500 Millions, NF-Rs.70.000 Millions) PNB Rs.130.000 Millions (F-Rs.56.000 Millions, NF- Rs.74.000 Millions) CBI Rs.70.000 Millions )F-Rs.30.000 Millions NF-Rs.40.000 Millions), CB Rs.83.500 Millions (F-Rs.333.500 Millions, NF Rs. 50.000 Millions ) and BOB Rs.60.000 Millions (F-Rs.24.000 Millions, NF- Rs.36.000 Millions)

 

Bank of Boroda, Mulji Jetha Bluiding, 185/187, Princess Street, Mumbai - 400002, was joined the consortium.

 

Now further modified on 20.12.2005 enchancing the total charge from Rs.475.000 Millions to Rs. 600.000 Millions Consisting of funded and non-funded facilities granted by IVB Rs.186.000 Millions (F-Rs.75.000 Millions, NF-Rs.111.000 Millions) PNB Rs.184.000 Millions (F-Rs.80.000 Millions, NF-Rs.104.000 Millions), CB Rs.90.000 Millions (F-Rs.35.000 Millions NF-55.000 Millions) and BOB Rs.140.000 Millions (F-Rs.60.00 Millions, NF-Rs.80.000 Millions)

 

Central Bank of India ceased to be a member of consortium

 

 

This form is for

Creation of Charge

Corporate identity number of the company

L24120MH1982PLC026867

Name of the company

PRIVI ORGANICS LIMITED

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

205, Princess Street Mumbai;400002, Maharashtra, India

Type of charge

Book Debts, Movable Property, other

 

Raw Materials, Work in Process, finished Goods, Etc,

Particular of charge holder

Punjab National Bank limited,

Ilaco House, fort, Mumbai;400001,Maharashtra, India

Nature of description of the instrument creating or modifying the charge

Deed of Hypothecation to secure lc on DA/DP Basis Hypothecation of Goods and Book Debts to secure Cash Credit Facility Packing Credit Agreement (Hypothecation) Agreement of FOB/FOUBP/FABC/FOBD/FOBNLC/FOUBNLC

Date of instrument Creating the charge

28.02.2007

Amount secured by the charge

Rs.230.000 Millions

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

Rate of Interest:

BPLR+0.5% i.e, 12.25% at present

 

Terms of repayment: On or Before one Year

 

Margin: As fixed by the bank from time to time

 

Extent and Operation of the charge:

Working capital facilities amounting fund Based Rs. 95.000 Millions and Non-Fund Based Limit Rs. 135.000 Millions by the Bank

Short particulars of the property charged

Hypothecation of Goods and Book Debts to secure cash facility for rs.95.00 Millions

1)       the Present and Future stocks of raw material, work in process, finished goods, consumables, stores and spares

 

Deed of Hypothecation to secure LC on DA/DP basis fr Rs.135.000 Millions

 

Fixed Assets:-

 

·         Lease hold Land

·         Buildings

·         Staff quarters

·         Plant and Machinery

·         Electrical Installations

·         Furniture

·         Office Equipments

·         Computers

·         Computers software

·         Lab Equipments

·         Vehicles

 

change of address:-

 

The Registered office of the company was 205, Princess Street, Mumbai - 400 002, Maharashtra change to present registered address w.e.f. 28.09.2007.

 

website details:-

 

Subject is one of India's leading manufacturer, supplier and exporter of aroma chemicals.

 

Subject  started manufacturing aroma chemicals in the year 1992 with only two products, which it gradually expanded to a range of over 50 products today, having a capacity of over 7000 tons per annum. Subject  also develops and produces custom-made aroma chemicals as per specific requirement of the customer. The research specialists at in-house R and D centre continuously thrive to develop new products and processes.

 

The quality analysis laboratory is equipped with instruments like GLC, GCMS, Spectrophotomers etc. Quality is strictly maintained at all stages - right from raw material to the finished products. Subject  launched its products in the international market in the year 1996 and today is a trusted supplier to many multinational fragrance houses across the globe. Exports contribute to more than 70% of their sales turnover.

 

The Quality Management System (QMS) of subject have the ISO 9001:2008 certification. Subject has also recently been conferred with ISO 14001:2004 certification for its Environmental Management System (EMS). Both these certifications are from Bureau Veritas.

 

Over the past 12 years, Subject has maintained an impressive average annual growth of more than 30%. This has been possible due to relentless drive to deliver exceptional value to their customer in terms of product, pricing and service.

 

Manufacturing Facilities

 

·         Two production units at Mahad in Maharashtra, situated 200 km south of Mumbai and close to JNPT port.

·         Production capacity - Over 7,000 MT of finished product.

·         Spread over 47,500 sq. meters.

·         Capable of handling complex unit operations such as pyrolysis, hydrogenation, cyclisation, condensation, esterification, hydration etc.

·         Multipurpose plants capable of handling both batch and continuous distillation processes for Aroma Chemicals, ensuring consistent purity and efficient use of inputs.

·         Both units have received ISO 9001-2000 accreditation from BVQI

·         Significant cost and logistics advantage due to location.

·         A state-of-the-art R and D Centre involved in synthesis of cost efficient processes for bulk and specialty aroma chemicals.

 

press releases:-

 

Privi has been conferred with ISO 14001 : 2004 Standard Certification (Environmental Management System) for all the Manufacturing Units in Mahad from Bureau Veritas.

 

This is yet another milestone in the history of the company. This certification demonstrates Privi’s commitment to control and minimize the impact it’s operations have on the environment, thereby providing assurance on environmental issues to its internal (management and employees) and external (shareholders, customers, suppliers, the community and regulatory agencies) stakeholders.

 

ISO 14001:2004 will certainly enable Privi to

 

·         identify and control the environmental impact of its activities, products or services, and to

·         improve its environmental performance continually, and to

·         implement a systematic approach to setting environmental objectives and targets, to achieving these and to demonstrating that they have been achieved.

 

Simultaneously, Privi’s ISO 9001 : 2000 Certification has also been updated to ISO 9001 : 2008 Certification.

 

 

HISTORY AND MILESTONES

 

1992    

 

Incorporated and started commercial production at Unit I Mahad.

 

1997    

 

Commences Export Sales

 

2000    

 

Set up Unit II at Mahad and started commercial production.

 

2000    

 

Awarded with Lalit Doshi Memorial Award( LDMF SICOM)
For outstanding performance among all SICOM assisted industrial units.

 

2002    

 

Conferred with Export House Status by Government of India.

 

2004    

 

Commenced R and D Centre with Hi- Tech Equipments and trained manpower. ISO 9001-2000 certification by BVQI.

 

NEWS AND EVENT:

 

Privi has been conferred with ISO 14001 : 2004 Standard Certification (Environmental Management System) for all the Manufacturing Units in Mahad from Bureau Veritas.

 

This is yet another milestone in the history of the company. This certification demonstrates Privi’s commitment to control and minimize the impact it’s operations have on the environment, thereby providing assurance on environmental issues to its internal (management and employees) and external (shareholders, customers, suppliers, the community and regulatory agencies) stakeholders.

 

ISO 14001:2004 will certainly enable Privi to :

  • identify and control the environmental impact of its activities, products or services, and to
  • improve its environmental performance continually, and to
  • implement a systematic approach to setting environmental objectives and targets, to achieving these and to demonstrating that they have been achieved.

 

Simultaneously, Privi’s ISO 9001 : 2000 Certification has also been updated to ISO 9001 : 2008 Certification.

 

 

 

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. 44.58

UK Pound

1

Rs. 71.75

Euro

1

Rs. 64.80

 

 

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

4

--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

YES

--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

-

 

 

 

 

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.