MIRA
INFORM REPORT
|
Report Date : |
08.07.2011 |
IDENTIFICATION DETAILS
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Name : |
PANDIAN CHEMICALS LIMITED |
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Registered
Office : |
17 – A, Vailabhai Road, Chokkikulam, Madurai – 625 002, Tamil Nadu |
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Country : |
India |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
09.11.1972 |
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Com. Reg. No.: |
18-006245 |
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Capital
Investment / Paid-up Capital : |
Rs. 19.311 millions |
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CIN No.: [Company Identification
No.] |
U24297TN1972PLC006245 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MRIP00034G |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
: |
Manufacturers
and Exporters of Miscellaneous Chemicals. |
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No. of Employees
: |
(Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (47) |
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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 960000 |
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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 dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office / Corporate Office: |
17 – A, Vailabhai Road, Chokkikulam, Madurai – 625 002, Tamil Nadu,
India |
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Tel. No.: |
91-452-2532436 |
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Fax No.: |
91-452-2532151 |
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E-Mail : |
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Website : |
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Factory : |
Located at:
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DIRECTORS
AS ON 20.09.2010
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Name : |
Mr. Dhanasekarapandian Manohar Raj |
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Designation : |
Managing Director |
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Address : |
21A, Kamala II Street, Chinna Chokkikulam, Madurai – 625 002, Tamil Nadu,
India |
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Date of Appointment : |
10.02.2007 |
|
Other Directorship : |
CIN of company: U36911TN1987PLC014168 Name of the company: Mepco Industries Limited Designation: Managing Director CIN of company: U24294TN1984PTC010854 Name of the company: m. Dhanasekara Pandian and Sons Private Limited Designation: Director |
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Partnership held in partnership firm : |
Sv. K. Meenakshisundara Nadar Address: 11, Venkalakadai Street, Madurai – 625 001, Tamil Nadu, India
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DIN No : |
00001882 |
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Name : |
Mr. Sankaralingam Annamalai |
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Designation : |
Director |
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Address : |
239/ 2, Pioneer Avenue, New Natham Road, Narayanapuram, Madurai – 625
014, Tamil Nadu, India |
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Date of Appointment : |
29.09.1973 |
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DIN No : |
00001381 |
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Name : |
Mr. Vairaprakasam Ayyan Kodiswaran |
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Designation : |
Director |
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Date of Appointment : |
10.03.2000 |
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DIN No : |
00001872 |
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Name : |
Mr. Sahadevan Narayanaswamy |
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Designation : |
Director |
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Date of Appointment : |
26.09.1996 |
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DIN No : |
00001889 |
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Name : |
Mr. Gunasingh Chelladhuri |
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Designation : |
Director |
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Date of Appointment : |
09.11.2001 |
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DIN No : |
00168538 |
KEY EXECUTIVES
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Name : |
Krishnamoorthy Sathiavan |
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Designation : |
Secretary |
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Date of Appointment : |
06.07.1981 |
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PAN No : |
ABPPS4205B |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 20.09.2010
|
Names of Shareholders |
No. of Shares |
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Dhanasekarapandian Manohar Raj |
342 |
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Sankaralingam Annamalai |
685 |
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Sahadevan Narayanaswamy |
10 |
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Vairaprakasam Ayyan Kodiswaran |
1050 |
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Gunasingh Chelladhuri |
211 |
|
M Arunachalam |
130 |
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K Shanmugasundaram |
4 |
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B Santhi Singh |
25 |
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T B Vasudevan |
6 |
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K Rajeshwari |
50 |
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E K P S Chandrasekaran |
50 |
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C Asokan |
50 |
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S Alagendran |
130 |
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C Mallika |
32 |
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C Rahul |
25 |
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K S Yoganandam |
5 |
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S D Nandhakumar |
5 |
AS ON 20.09.2010
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Category |
Percentage |
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Bodies corporate |
62.00 |
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Directors or relatives of Directors |
10.00 |
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Other top fifty shareholders |
16.00 |
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Others |
12.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
and Exporters of Miscellaneous Chemicals. |
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Products : |
Potassium chlorate, potassium perchlorate, sodium chlorate, sodium perchlorate, ammonium perchlorate, magnesium perchlorate, perchloric acid etc.
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GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
S. Chandrasekaran Chartered Accountants |
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Address : |
12, (Old No.5), |
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Subsidiaries : |
Mepco Industries
Limited CIN No.: U36911TN1987PLC014168 |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
400000 |
Equity Shares |
Rs.100/- each |
Rs. 40.000 Millions |
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Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
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|
252000 |
Equity Shares |
Rs.100/-
each |
Rs. 25.200
Millions |
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Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
193106 |
Equity Shares |
Rs.100/-
each |
Rs. 19.311
Millions |
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Note: (Of the above shares 102000 equity shares of
Rs. 100/- each have been allotted as fully paid Bonus Shares by way of
Capitalization of General Reserve)
FINANCIAL 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 |
19.311 |
19.311 |
19.311 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
222.774 |
208.031 |
186.968 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
242.085 |
227.342 |
206.279 |
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LOAN FUNDS |
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1] Secured Loans |
26.635 |
0.000 |
23.313 |
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2] Unsecured Loans |
0.652 |
0.844 |
1.656 |
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TOTAL BORROWING |
27.287 |
0.844 |
24.969 |
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DEFERRED TAX LIABILITIES |
9.009 |
9.009 |
12.319 |
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TOTAL |
278.381 |
237.195 |
243.567 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
141.825 |
143.842 |
135.559 |
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Capital work-in-progress |
5.983 |
6.292 |
5.099 |
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INVESTMENT |
12.285 |
14.253 |
16.106 |
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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 |
62.282
|
100.341 |
96.330
|
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Sundry Debtors |
14.133
|
19.481 |
18.403
|
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Cash & Bank Balances |
68.656
|
28.051 |
39.465
|
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Other Current Assets |
0.480
|
0.100 |
2.749
|
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Loans & Advances |
40.517
|
18.880 |
29.487
|
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Total
Current Assets |
186.068
|
166.853 |
186.434 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
62.649
|
88.436 |
94.317 |
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Other Current Liabilities |
0.303
|
0.416 |
0.000
|
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Provisions |
4.828
|
5.193 |
5.965
|
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Total
Current Liabilities |
67.780
|
94.045 |
100.282 |
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Net Current Assets |
118.288
|
72.808 |
86.152
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.651 |
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TOTAL |
278.381 |
237.195 |
243.567 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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|
338.861 |
288.251 |
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Miscellaneous Sales |
NA |
0.721 |
2.318 |
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Interest Receipts |
|
1.707 |
3.950 |
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Other Income |
|
12.377 |
13.467 |
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TOTAL (A) |
NA |
353.666 |
307.986 |
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Less |
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Cost of Material |
|
8.934 |
(15.373) |
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Raw Material Consumed |
NA |
168.805 |
162.378 |
|
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Employees Cost |
|
18.132 |
14.618 |
|
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Manufacturing Expenses |
|
97.891 |
81.897 |
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TOTAL (B) |
NA |
293.762 |
243.520 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
41.814 |
59.904 |
64.466 |
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Less |
FINANCIAL
EXPENSES (D) |
1.988 |
3.680 |
6.173 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
39.826 |
56.224 |
58.293 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
11.720 |
18.341 |
17.335 |
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PROFIT BEFORE
TAX (E-F) (G) |
28.106 |
37.883 |
40.958 |
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Excess Provision
of Dividend Tax In Earlier Year |
0.000 |
0.456 |
0.000 |
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Provision for
Income Tax and FBT |
0.325 |
11.675 |
0.000 |
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Provision for
Differed Tax Reversed |
0.000 |
3.310 |
0.000 |
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Less |
TAX (I) |
8.861 |
27.066 |
14.394 |
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PROFIT AFTER TAX
(G-I) (J) |
19.570 |
26.258 |
26.564 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8.999 |
7.685 |
11.345 |
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Less |
APPROPRIATIONS |
|
|
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|
|
|
|
Transfer to General Reserve |
14.080 |
19.750 |
24.575 |
|
|
|
Dividend |
4.828 |
4.828 |
4.828 |
|
|
|
Tax on Dividend |
0.000 |
0.366 |
0.821 |
|
|
BALANCE CARRIED
TO THE B/S |
9.661 |
8.999 |
7.685 |
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IMPORT VALUE |
32.167 |
27.413 |
NA |
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|
|
|
Earnings Per
Share (Rs.) |
101.53 |
175.76 |
196.30 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
NA
|
7.75 |
8.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
NA
|
11.16 |
14.09 |
|
|
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|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.57
|
12.19 |
12.72 |
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.17 |
0.20 |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
0.43
|
0.46 |
0.67 |
|
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|
Current Ratio (Current Asset/Current Liability) |
|
2.75
|
1.77 |
1.86 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
OUTLOOK :
The total turnover
during the year was lesser by 21.87% compared to previous year.
The Company’s Perchlorate
Plant is functioning satisfactorily. One of the Company’s 250 KW wind turbine
installed during 1990 failed forcing the Company to replace it by a new 250 KW
machine which was commissioned in March last week.
The Company’s
Subsidiary Mepco Industries Limited production is low due to delay in getting
approval of Government Departments to run the plant at its full Capacity.
However to meet the demand, the Company is importing Potassium Chlorate and
selling it to the customers.
The Subsidiary Company’s
plant at Karaikal was forced to suspend production since 7th July, 2009 due to
seizure of its raw material and finished product by Puducherry Government
Agriculture Department Officials. Consequent to getting order of the Madras
High Court, the plant was recommissioned on 13th October, 2009.
The Company has
contributed Rs. 39.537 millions to the Central/State Exchequers by way of
Excise Duties, Sales Tax and Income Tax during the year. The Company has
accepted deposits from the Members of Public amounting to Rs. 0.630 million
(excluding accrued interest) as on 31st March 2010. There was no unclaimed
deposit as at 31st March 2010.
The earnings from
Export during the year was Nil.
TIDCO’s consent
for merger of its Subsidiary Mepco Industries Limited with the Company is yet
to be received. The assets of the Company are adequately insured against Fire
and other risks which are considered necessary.
FORM 8
|
Corporate
identity number of the company |
U24297TN1972PLC006245 |
|
Name of the
company |
PANDIAN CHEMICALS LIMITED |
|
Address of the
registered office or of the principal place of business in |
17 – A, Vailabhai Road, Chokkikulam, Madurai – 625 002, Tamil Nadu,
India |
|
This form is for |
Modification of charge Creation of charge |
|
Type of charge |
Immovable property Others |
|
Particular of
charge holder |
Indian Overseas Bank, Plot No.40, 80 Feet Road, Arignar Anna Nagar,
Madurai – 625 020, Tamil Nadu, India |
|
Nature of
instrument creating charge |
Pandian
Chemicals Limited - APC Division land and building given as additional
security for Term Loan of Rs.10.000 millions sanctioned by Indian Overseas
Bank, Arignar Anna Nagar Branch, Madurai-625020 as Letter of confirmation
dated 03.08.2010. |
|
Date of instrument
Creating the charge |
03.08.2010 |
|
Amount secured by
the charge |
Rs. 10.000 millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest BPLR-i.e.
12% AT PRESENT Terms of
repayment 15 quarterly
installments of Rs.0.675 million each commencing after one month from the
date of release (from 13th month, 17th month onwards from first
disbursal by way of reimbursement (the last installment being Rs.0.550 million)
Interest debited should be serviced then and there including holiday period
interest. Margin Factory
Land and Building at Puliyur Unit Sayanapuram Village Extent and
operation of the charge Exclusive
charge on Indian Overseas Bank |
|
Short particulars
of the property charged (Including location of the property) |
Entire
Block assets of the company including 24 acres 625cents of land at
Sayanapuram Village, Puliyur, Manamadurai Taluk, Sivagangai District, Land
and Factory Building of Pandian Chemicals Limited [PCL] PCL
R. S. No. 23/1, 25/3, 25/4, 18/3, 21/1, 21/2, 3, 4, 5A, 6, 7, 9, 22/2, 3, 4,
7, 8, 23/3, 22/1, 5, 20/2A, 3, 4, 22/6, 23/2, 25/7 at Sayanapuram PCL
Wind Mill Division at Surandai S.No.361 an extent of 1 Acre 78 Cents Exclusive
charge on the 16 acres 34 cents of land at T. R. Pattinam, Karaikal at R.S. No.58/3,
58/4, 58/5,58/6, 58/7, 58/8, 68/4C, 68/1, 70/2, 70/3, 68/2, 68/4A, 68/4B,
67/3 and 67/1 Plant
and Machinery and Current assets of PCL-APC Division Factory at Cuddalore Land
and Buildings of Pandian Chemicals Limited-APC Division at Semmankuppam,
SIPCOT Industrial Estate at Cuddalore |
|
Charge
identification number of the charge to be modified |
10229196 |
|
Particulars of
the present modification |
Pandian
Chemicals Limited - APC Division land and building given as additional
security for Term Loan of Rs.10.000 millions sanctioned by Indian Overseas
Bank, Arignar Anna Nagar Branch, Madurai-625020 as Letter of confirmation
dated 03.08.2010. |
FIXED ASSETS:
- Land
- Buildings
- Plant and
Machinery
- Furniture and
Fittings
- Vehicles
WEBSITE DETAILS:
PROFILE:
Subject is engaged
in the Manufacture of Potassium Chlorate (Match Grade), Potassium Per Chlorate,
Sodium Per Chlorate, Ammonium Per Chlorate, Magnesium Per Chlorate and
Perchloric Acid. Potassium Chlorate meets International Standards and is being
exported to countries like
These products are used in the manufacture of Safety
matches, Dyes, Fire works, High altitude
batteries, Pharmaceutical and as propellant for
rockets.
The group owns three plants engaged in the manufacture and export of Potassium
Chlorate, various per chlorates and Per Chloric Acid.
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. 44.42 |
|
|
1 |
Rs.70.95 |
|
Euro |
1 |
Rs.63.63 |
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 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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.