MIRA INFORM REPORT

 

 

Report Date :

12.07.2011

 

IDENTIFICATION DETAILS

 

Name :

CHEMBOND CHEMICALS LIMITED

 

 

Registered Office :

Plot No. EL-71, TTC Industrial Area, M.I.D.C. Electronic, Mahape, Thane – 400710, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation / Year of Establishment  :

22.03.1975

 

 

Com. Reg. No.:

11-18235

 

 

Capital Investment / Paid-up Capital :

Rs.63.604 Millions

 

 

CIN No.:

[Company Identification No.]

L24100MH1975PLC018235

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMC10906A

 

 

PAN No.:

[Permanent Account No.]

AAACC5467A

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing and Marketing of Chemicals.

 

 

No. of Employees :

50 [Approximately]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

41-55

Ba

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

 

Satisfactory

 

 

Maximum Credit Limit :

USD 1170000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track.  The company is doing well. It’s financial position is satisfactory.  Payments are usually correct and as per commitments.

 

The company can be considered good for any normal 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 – June 30, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered/ Corporate Office :

Plot No. EL-71, TTC Industrial Area, M.I.D.C. Electronic, Mahape, Thane – 400710, Maharashtra, India

Tel. No.:

91-22-27618799/ 66143000

Fax No.:

91-22-27681294

E-Mail :

chembond@bom2.vsnl.net.in

dipti.samant@chembondindia.com

info@chembondindia.com

chembond@vsnl.com

Website :

http://www.chembondindia.com

 

 

City Office :

B-23 Todi Industrial Estate, New Sunmill Compound, Lower Parel, Mumbai – 400013, Maharashtra, India

Tel. No.:

91-22-24921149/ 24922819/ 24922402/ 24921069

 

 

Factory 1 :

Plot No. E-6/3 and 6/4, MIDC Estate, Tarapur, Boisar – 401506, District Thane, Maharashtra, India

Tel. No.:

91-252-22572615

Fax No.:

91-252-22571172

 

 

Factory 2:

Plot T / 129, MIDC Tarapur, District Thane, Maharashtra, India

 

 

Factory 3:

Khasara 177/2, Village Theda, PO Lodhimajra, Tehsil Nalagarh, Baddi District, Solan – 174101, Himachal Pradesh, India.

 

 

Factory 4:

Near Remana Golai, Opposite Rajesh Chemicals, Balasore – 756001, Orissa, India

 

 

Factory 5:

5/5, 5/6B, Avadi Main Road, Sanneerkuppam, Poonamalle, Chennai – 600056, India

 

 

Branches :

Located at :  

  • Ahmedabad
  • Lower Parel
  • Chennai
  • New Delhi
  • Kolkata

 

 

DIRECTORS

 

As on 31.03.2010

 

Name :

Dr. Vinod D. Shah

Designation :

Chairman & Managing Director

Date of Birth/Age :

74 years

Qualification :

Doctorate in Chemical Engineering

Nature of Contract :

3 years w.e.f. 01.01.2004

 

 

Name :

Mr. Ashwin  R. Nagarwadia

Designation :

Director

 

 

Name :

Mr. Jayant  S. Vasani

Designation :

Director

 

 

Name :

Mr. Mahendra  K. Ghelani

Designation :

Director

 

 

Name :

Mr. Perviz  H. Dastur

Designation :

Director

 

 

Name :

Mr. O. P. Malhotra

Designation :

Director

 

 

Name :

Mr. Sameer V. Shah

Designation :

Vice Chairman and Executive Director

 

 

Name :

Mr. Nirmal V. Shah

Designation :

Joint Managing Director

 

 

Name :

Mr. Jawahar I. Mehta

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mrs. Dipti Samat

Designation :

Company Secretary

 

 

Name :

Mr. Bhadresh D. Shah

Designation :

General Manager (Commercial)

 

 

Name :

Mr. Sanjay R. Naik

Designation :

Deputy General Manager – Coatings

 

 

Name :

Mr. Mangesh Patil

Designation :

Plant Manger - Dudhwada

 

 

Name :

Mr. Abhijit Giri

Designation :

Deputy General Manager – Coatings

 

 

Name :

Mr. Jinesh Maniar

Designation :

Finance Controller

 

 

Name :

Mr. Mangesh Narvekar

Designation :

Deputy General Manager - Trading

 

 

Name :

Mr. M. P. Nagarkar

Designation :

General Manager (Projects)

 

 

Name :

Mr. Ravikumar Mutaka

Designation :

Head – Operations (Tarapur)

 

 

Name :

Deepak M. Wadekar

Designation :

Senoir Manager (SHEQ)

 

 

Name :

Mr. Devkinandan Sharma

Designation :

Plant Manager (Baddi)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Category of Shareholders

No. of Shares

Percentage

 

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

3638999

57.21

Bodies Corporate

595568

9.36

Sub Total

4234567

66.58

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

4234567

66.58

(B) Public Shareholding

 

 

(1) Institutions

 

 

Financial Institutions / Banks

23800

0.37

Sub Total

23800

0.37

(2) Non-Institutions

 

 

Bodies Corporate

478607

7.52

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

604317

9.50

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

993221

15.62

Any Others (Specify)      

25900

0.41

Directors & their Relatives & Friends

25900

0.41

Sub Total      

2102045

33.05

Total Public shareholding (B)

2125845

33.42

Total (A)+(B)

6360412

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

--

--

Total (A)+(B)+(C)

6360412

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of Chemicals.

 

 

Products :

Products Description

ITC Code No.

Metal Pretreatment Chemicals

3402.90 / 3811.00

Water Treatment Chemicals

3811.00

Construction Chemicals

3823.00

Anti Corrosive Paints/Coatings

3208.90/3814.00

 

 

PRODUCTION STATUS As on 31.03.2010

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Liquid

KL/MT

NA

NA

20063

Powder

KL/MT

NA

NA

274

 

 

GENERAL INFORMATION

 

No. of Employees :

50 [Approximately]

 

 

Bankers :
  • Bank of India, Worli Naka Branch, Mumbai – 400018, Maharashtra, India
  • HDFC Bank Limited, Nariman Point, Mumbai, Maharashtra, India

 

 

Facilities :

Secured Loan [Rs. in million]

31.03.2010

31.03.2009

Term Loan from HDFC Bank Limited

(Secured by hypothecation of movable fixed assets and mortgage of immovable property located at Theda, Himachal Pradesh)

2.775

9.775

Term, Loan from Bank of India

(Secured by equitable mortgage on fixed block and hypothecation of Plant and machinery located at Dudhwada, Gujarat)

38.850

49.972

Term Loan from HDFC Bank Limited

(First and exclusive charge by way of equitable mortgage on the movable and immovable fixed asset of the company located at Mahape and E 6/4 Tarapur)

68.571

45.000

Cash Credit facilities from HDFC Bank Limited

(Secured by charge on current assets, Mortgage of Tangible Immovable Properties and charge on other fixed assets)

25.858

69.164

Overdraft Facilities from Bank of India

(Secured against fixed deposit of subsidiary company protochem industries private limited)

35.138

0.000

Total

171.194

173.911

 

Unsecured Loan [Rs. in million]

31.03.2010

31.03.2009

Loan from Directors

 

 

Maximum Amount Outstanding for loan from Directors

15.822

7.800

Loan from Shareholders and Others

17.661

11.467

Deferred Sales tax Liability

1.577

2.145

Total

35.062

21.412

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kastury and Talati

Chartered Accountants,

Address :

Mumbai, Maharashtra, India

 

 

Associates :
  • CCL Building Systems Limited
  • Chembond Enzyme Company Limited

 

 

Subsidiaries :
  • Chembond Ashland Water Technologies Limited
  • Protochem Industries Private Limited

 

 

Joint Venture:
  • Henkel Chembond Surface Technologies Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10,000,000

Equity Shares

Rs.10/- each

Rs.100.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6,360,412

Equity Shares

Rs.10/- each

Rs.63.604 millions

 

NOTE:

 

Of the above 190206 (10000) equity shares of Rs. 10 each have been issued for consideration other than cash

 

Of the above 4300206 (1120000) equity shares of Rs. 10 each have been issued as fully paid up Bonus                  shares by way of capitalization of Reserves and Surplus

 

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

63.604

30.000

30.000 

2] Share Capital Suspense

0.000

1.802

0.000 

3] Reserves & Surplus

229.924

222.617

171.037 

4] (Accumulated Losses)

0.000

0.000

0.000 

NETWORTH

293.528

254.419

201.037 

LOAN FUNDS

 

 

 

1] Secured Loans

171.194

173.911

51.206 

2] Unsecured Loans

35.062

21.412

28.475 

TOTAL BORROWING

206.256

195.323

79.681 

DEFERRED TAX LIABILITIES

19.414

13.709

11.340 

 

 

 

 

TOTAL

519.198

463.451

292.058 

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

208.841

197.399

107.280

Capital work-in-progress

0.771

3.642

 17.175

 

 

 

 

INVESTMENT

133.453

68.075

 35.720

DEFERREX TAX ASSETS

0.000

0.000

 0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
159.207
143.599
117.274

 

Sundry Debtors
244.342
232.463
 169.328

 

Cash & Bank Balances
9.108
               5.775
 4.678

 

Other Current Assets
0.000
0.000
 0.000

 

Loans & Advances
18.617
41.583
 63.547

Total Current Assets
431.274

423.420
 354.827

Less : CURRENT LIABILITIES & PROVISIONS
 

 
 

 

Sundry Creditors
235.714
209.038
 159.630

 

Other Liabilities
0.274
0.267
-

 

Provisions
19.153
19.780
 63.314

Total Current Liabilities
255.141

229.085
 222.944

Net Current Assets
176.133
194.335
131.883

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

 0.000

 

 

 

 

TOTAL

519.198

463.451

292.058

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

1144.158

1109.176

955.195

 

 

Other Income

31.506

27.424

26.697

 

 

TOTAL                                     (A)

1175.664

1136.600

981.892

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing Expenses

146.866

134.578

106.612

 

 

Raw Material Consumed

934.116

935.596

801.521

 

 

Increase/(Decrease) in Finished Goods

(4.836)

(12.218)

(3.610)

 

 

Other Expenditure

(0.189)

(0.189)

0.000

 

 

TOTAL                                     (B)

1075.957

1057.767

904.523

 

 

 

 

 

Less

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

99.707

78.833

77.369

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

23.829

14.658

7.477

 

 

 

 

 

 

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

75.878

64.175

69.892

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

11.143

8.698

5.835

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

64.735

55.477

64.057

 

 

 

 

 

Less

TAX                                                                  (H)

13.005

7.449

13.618

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

51.730

48.028

50.439

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

153.461

120.307

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

5.500

5.000

NA

 

 

Dividend

11.130

10.500

NA

 

 

Tax on Dividend

1.848

1.784

NA

 

 

Set off of Dividend Tax

(1.178)

(1.178)

NA

 

 

Dividend on share issued on Amalgamation

0.630

0.000

NA

 

 

Addition of amalgamation of SMEPL

0.000

(1.230)

NA

 

BALANCE CARRIED TO THE B/S

187.261

153.4597

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

12.187

15.435

11.237

 

 

Commission Earnings

0.031

0.000

NA

 

TOTAL EARNINGS

12.218

15.435

11.237

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

153.720

196.127

138.133

 

 

Capital Goods

0.000

2.738

NA

 

TOTAL IMPORTS

153.720

198.865

138.133

 

 

 

 

 

 

Earnings Per Share (Rs.)

8.13

7.60

--

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

 Sales Turnover

331.120

351.000

323.210

369.770

 Total Expenditure

306.000

315.500

303.850

331.850

 PBIDT (Excl OI)

25.120

35.500

19.360

37.920

 Other Income

0.000

0.000

0.000

0.000

 Operating Profit

25.120

35.500

19.360

37.920

 Interest

6.670

6.150

6.180

5.550

 Exceptional Items

0.000

0.000

0.000

0.000

 PBDT

18.450

29.350

13.180

32.370

 Depreciation

3.000

3.000

3.000

3.020

 Profit Before Tax

15.450

26.350

10.180

29.350

 Tax

5.300

5.100

2.400

3.360

 Reported PAT

10.140

21.250

7.780

25.990

Extraordinary Items       

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

10.140

21.250

7.780

25.990

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
4.40

4.22
5.14

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
5.65

5.00
6.71

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
10.11

8.93
13.86

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.22

0.21
0.32

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
1.57

1.66
1.51

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
1.69

1.84
1.59

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY:                 

 

The company was originally incorporated as a private limited liability company and was later converted into a public limited company.

 

 

PERFORMANCE REVIEW 

 The Company has recorded an increase in Sales of 3.15% and an increase of 16.8% and 7.4% in Profits before Tax (PBT) and Profit after Tax (PAT) respectively over the previous year. The Earning per Share (EPS) increased to Rs. 8.13 as at March 31, 2010 from Rs. 7.60 at the end of the previous fiscal year on the expanded equity of the company after the 1:1 bonus issue.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS 

 
GENERAL REVIEW ANDOUTLOOK 

 
The year saw the continuation of the effects of the global slowdown in the first quarter and although most sectors recovered sharply, the infrastructure construction sector was further affected during the year. The Company saw strong growth in sectors like automobile, steel, power generation, and refining.

 

The sectors under which the Company operates have been posting healthy growth rates over the past several years. By all accounts, the predictions are for continued or even accelerated growth in the domestic industry, which provides opportunities for the Company to continue to return impressive growth and returns for all shareholders.

 

 BUSINESS AREAS

 

The Company is in the business of manufacturing specialty chemicals and offers a range of products for diverse industrial applications. The Company maintains its head office in Mahape, Navi Mumbai and operates plants in Tarapur, Baddi, Dudhwada, Chennai, and Balasore.

 

Construction Chemicals

 

Identified as a business with extensive potential, the Company manufactures at multiple plants a range of chemicals for use in the construction industry. Positioned mainly at the large infrastructure projects, products like admixtures, curing compounds, sealants and waterproofing systems are in wide use across the country. However with the slowdown in infrastructure creation, this division has not met internal growth expectations. Actions have been initiated to broad base the operations and the performance is expected to improve in the coming year.

Coatings .The Company manufactures coatings for application on metal structures for corrosion protection. This division also manufactures coatings for industrial floors, which finds application in places where an aseptic, tough, resistant, selfleveling, and easy to clean floor is required. During the second half of the year the sales of these products improved on the back of overall industrial growth in the country. With a continued focus on development and offering the customer high performing products, this division is expected to further improve during the coming year.

 

Chembond Ashland Water Technologies Limited.

 

The Company owns 55% equity with Ashland Inc, USA owning the rest of this joint venture company. The company manufactures a range of water treatment chemicals for cooling water treatment, boiler feed water treatment, raw water and waste water treatment and reverse osmosis membrane treatment. The products find wide application in fertilizer, steel, power generation, chemical and petrochemical manufacturing, oil refining and effluent treatment facilities. All of these are growing industries and the future remains bright for the range of products manufactured by this joint venture.

 

Henkel Chembond Surface Technologies Limited.

 

The Company owns 49% of this joint venture company. Henkel Chembond manufactures metal treatment chemicals for applications in automobile, steel, appliance, engineering, defense, rail, aerospace, and general industries. The industries to which the joint venture caters has seen a rapid growth due to the rising aspirations of a growing middle class in the country.

 

Protochem Industries Private Limited.

 

The Company acquired 100% of the shares of Protochem in 2009-10. Protochem mainly manufactures metal treatment chemicals, which were subsequent to the acquisition transferred to Henkel Chembond wef November 2009. Protochem will now develop products for specialized applications in the metal processing industry and other products, which are not offered by the joint venture company.

 

Chembond Enzyme Company Limited.

 

The Company holds a 49% shareholding in this associate company which supplies industrial enzymes for applications in textile, animal health, and alcohol production. The Company currently has a minor presence in these industries but now has a product range, marketing team, and development team to make this company a market leader in the years to come.

 

Chembond Distribution Limited (formerly CCL Building Systems Limited.)

 

This company in which the Company owns 47% equity offers specialized chemical based solutions to the problems faced by the building industry. The business model has now been refined and larger scale activities will now be carried out under this company during the coming year.

 

                       UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2011

 

PARTICULARS (Rs. In millions)

QUARTER ENDED 31.03.2011

Unaudited

YEAR ENDED 31.03.2011

Unaudited

Net Sales

345.147

1324.494

Other Operating Income

24.619

50.680

Total Income

369.766

1375.174

Expenditure

 

 

a. (Increase)/decrease in stock

30.361

[8.372]

b. Consumption of raw materials

227.399

1001.897

c. Purchase of traded goods

31.083

89.618

d. Employees cost

25.024

91.783

e. Depreciation

3.020

12.018

f. Other expenditure

17.981

82.359

g. Total

334.868

1269.303

Profit from Operations before Other Income, Interest and Exceptional Items

34.898

105.871

Other Income

0.000

0.000

Profit before Interest and Exceptional Items

34.898

105.871

Interest

5.550

24.549

Profit after Interest but before Exceptional Items

29.348

81.322

Exceptional items

0.000

0.000

Profit Before Tax

29.348

81.322

Tax Expenses

3.355

16.155

Net Profit After Tax

25.993

65.166

Minority Interest

--

 

Share of  (Profit)/ Loss from Associates (Net)

--

 

Net Profit After Tax, After Share pf (Profit) / Loss of Associates and Minority Interest

25.993

65.166

Paid – up equity share capital (face value of Rs.10 per share)

63.604

63.604

Basic and diluted EPS

4.09

10.25

Reserves (Excluding Revaluation Reserves)

0.000

0.000

Public Share Holding

 

 

- Number of Shares

2125845

2125845

- Percentage of shareholding

33.42%

33.42%

Promoters and Promoter group share holding

 

 

a) Pledged / Encumbered

 

 

- Number of Shares

--

--

- Percentage of share (as a % of the total shareholding of promoter and promoter group)

--

--

- Percentage of shares(as a % of the total share capital of the company)

--

--

b) Non-encumbered

 

 

- Number of Shares

4234567

4234567

- Percentage of Share (as a % of the total shareholding of promoter and promoter group)

100%

100%

 - Percentage of Share (as a % of the total share capital of the company)

66.58%

66.58%

 

NOTES:

 

  1. The above results were reviewed by the Audit Committee and approved bf the Board of Directors at their meeting held on 07.05.2011.
  2. Statutory auditors have carried out a limited review of the Accounts for the quarter ended 31.03.2011 as required by clause 41 of the listing agreement.
  3. Previous quarter figures have been regrouped or reallocated wherever necessary to conform to this quarter classification
  4. The company operates in a single business segment, namely “Specialty Chemicals therefore the Information pursuant to AS. 17 is not applicable.
  5. Other operating income for the year ended 31.03.2011 includes dividend received from subsidiary company of Rs.11.000 millions [P. Y. Rs.7.562 millions] and joint venture company of Rs.18.620 millions [P.Y. 15.680 millions]
  6. Investor complaint outstanding at the beginning of the quarter was nil. One complaint was received during the quarter, one of them remain unresolved.

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2010

(Rs. In Millions)

 

 

Outstanding Bank Guarantee Issued by Bankers

9.404

Corporate guarantee Given to Bank of India by the Company on behalf of Subsidiary – Chembond Ashland Water Technologies Limited

60.000

Income Tax matter under appeal

0.135

Balance Payment for Capital Commitments

1.028

Claim against the company not acknowledged as debts

0.960

 

 

 

 

 

 

 

 

 

 

 

 

FIXED ASSETS:

 

  • Land
  • Building
  • Equipment and Machinery
  • Computer
  • Furniture and Fixtures
  • Office Equipments
  • Electric Fitting and Installation
  • Vehicles

  

WEBSITE DETAILS

 

MILESTONE

 

Subject is a BSE listed company, established in 1975, with group sales of over Rs. 150.000 millions and 500 employees.

 

Subject manufactures Metal Treatment Chemicals and Water Treatment Chemicals in joint ventures with global leaders Henkel, Germany and Ashland, USA respectively. We are the market leaders in these products in India with sales to the automotive, steel, petrochemical, power, appliance, engineering, fertilizer and pharma industries.

 

Subject also manufactures construction chemicals for the building construction and infrastructure sectors and high performance coatings for structural protection from corrosion, floors and walls in clean rooms and shop floors and building exteriors. Chembond`s newest project in biotechnology promises to improve industrial applications using the technology of the future.

 

Subject modern, well-equipped and multi-purpose manufacturing and blending plants are located at Tarapur, Maharashtra; Baddi, Himachal Pradesh and Dudhwada, Gujarat. Additional blending plants are located in Chennai, Tamil Nadu and Balasore, Orissa. Warehouses and branch offices are located at Ahmedabad, Bangalore, Delhi, Faridabad, Jamshedpur, Kolkata and Pune

 

The Chembond Group companies include:

 

  • Chembond Chemicals Limited
  • Chembond Ashland Water Technologies Limited
  • Henkel Chembond Surface Technologies Limited
  • Chembond Enzymes Company Limited
  • CCL Building Systems Limited

 

Launch of environmental bio-products

 

Takeover of Drewtreat Chemicals Limited and simultaneous Joint Venture with Ashland Inc, USA for Water treatment chemicals.

 

Joint Venture with Henkel KGaA, Germany for Metal treatment chemicals

 

Chembond IPO, shares listed on the Bombay Stock Exchange

 

Technology transfer agreement with Freiborne, USA, for manufacture of cold forming lubricants for the wire drawing industry. Diversification into manufacturing Anticorrosive coatings, Construction chemicals, Maintenance products and Water treatmen  plants.

 

Expansion of facilities at Tarapur, doubling factory premises and  substantially increasing the production capacity.

 

Diversification into manufacture of Cooling water treatment chemicals.

 

Construction of a manufacturing  plant at Tarapur.

 

Incorporation of the company as Chembond Chemicals Private Limited on March 22, 1975. Chemicals offered were for Pre-treatment of metallic surfaces.

 

Henkel Chembond Surface Technologies Limited. is a Joint Venture between Henkel KGaA and Chembond Chemicals Ltd in operation since 1997. Henkel owns 51% of the JVC and Chembond, owns the balance 49%. Henkel is a global specialty products company and is the world's largest metal chemical supplier with a market share of over 65%.

 

Chembond Ashland Water Technologies Limited. is a Joint Venture between Chembond Chemicals Limited and Ashland Inc., USA. The JV was a result of Chembond's acquisition of Drewtreat Chemicals Limited, and simultaneous merger of its water treatment business into the company.

 

PRESS RELEASE

 

Chembond to participate in Cemcon 2011, an international conference and exhibition on construction of high-rise concrete buildings

 

June 6, 2011, MUMBAI – Chembond Chemicals Limited announces its participation and associate sponsorship of Cemcon 2011 an international conference and exhibition being held in the fast growing city of Pune. The event is being organized by the Indian Concrete Institute, Pune Chapter at Hotel Sun-n-Sand, Pune, on the 17th and 18th of June 2011.

The past few years have witnessed several technological breakthroughs in the construction field and India has adopted many new techniques and materials to achieve excellence in the field of construction. Chembond would have on display in its stand at Cemcon 2011 many of its products for the construction industry. A paper titled “New Generation Concrete for Tall Structures with PCE’s and beyond” would also be presented by Mr. Deepak Kanitkar, Deputy General Manager, Chembond Chemicals Limited and a technical expert in the field.

 

“Chembond’s construction chemicals have been in use in some of the most prestigious projects in India. We focus on sharing experiences and knowledge with our customers and also learning from them. We are proud to be associated with the Indian Concrete Institute as associate sponsors of Cemcon 2011 and of getting the opportunity of sharing our knowledge with professionals from the industry”, says Nirmal Shah, Joint Managing Director of Chembond Chemicals Limited.

 

“We would welcome all visitors and attendees to interact and discuss their technical challenges with us so that we may be able to come up with a solution to the same”, states Deepak Kanitkar. “On display in our stall will be a large part of our range of construction solutions encompassing areas like waterproofing, sealants, concrete and mortar admixtures, tile fixing adhesives, tile joint fillers and engineering grouts” adds Mangesh Patil, Head-Infrastructure Business of Chembond Chemicals Limited.

 

Chembond Chemicals Limited:

 

Founded in 1975, Chembond Chemicals Limited has headquarters in Mumbai and focuses on the speciality chemicals segment. The company is listed on the Mumbai Stock Exchange (BSE: CHEMBOND) and has an established presence across India. It operates four divisions – construction chemicals, coatings, trading and biotechnology; and two joint ventures – Henkel Chembond Surface Technologies Ltd. and Chembond  Ashland Water Technologies Ltd. Chembond has been growing consistently over the years on the strength of its technology and service capabilities and counts over 700

 

employees. More information on Chembond Chemicals Limited can be found on its website at www.chembondindia.com.

 

Construction Chemicals Division:

 

The Construction Chemicals Division of Chembond offers a wide range of products for applications in concrete modification, waterproofing and repair and rehabilitation of structures. It also offers a host of other product solutions like Sealants, Concrete Admixtures, Tile fixing adhesives, Tile Joint fillers and Engineering Grouts aimed at the construction and civil engineering industries. The K-Fix brand of construction chemicals cater to the distribution channel and applicator segment with small pack sizes, while the infrastructure projects are catered to in bulk pack sizes.

 

 

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 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.44.37

UK Pound

1

Rs.70.83

Euro

1

Rs.62.95

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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.